European Court of Justice, Case C-598/20, “Pilsētas zemes dienests,” VAT Exemption for Leasing Immovable Property Under a Compulsory Lease Regime

The European Court of Justice (ECJ) has ruled that Article 135(1)(l) and (2) of the Principal EU VAT Directive must be interpreted as meaning that the leasing of immovable property under a compulsory lease regime is excluded from the VAT exemption.

Conclusions on Implementation of VAT E-Commerce Rules Adopted

The European Union (EU) Council of Finance Ministers adopted conclusions on the implementation of the VAT e-commerce package that came into force on 1 July 2021, emphasising the One-Stop-Shop (OSS) and the Import One-Stop-Shop (IOSS) schemes that help businesses to comply with their VAT obligations on e-commerce sales and simplify the declaration and payment of VAT on distance sales of imported goods.

ECOFIN Adopts Amendment to VAT and/or Excise Duty Exemption Certificate

The ECOFIN adopted an amendment to the VAT and/or excise duty exemption certificate for member states to apply the new exemptions related to the COVID-19 pandemic and defence efforts in a uniform way, namely, to confirm if a transaction qualifies for the exemption from VAT and/or excise duty under Article 151 of Directive 2006/112.

The certificate will be adapted first, regarding the VAT exemptions related to the COVID-19 pandemic to apply until 30 June 2022 and, second, regarding defence efforts to apply as from 1 July 2022.