ECJ Says Rental Owner Doesn't Pay VAT If 3rd Party Manages

Law360 (June 4, 2021, 6:23 PM EDT) -- Renting out a property in a European Union country doesn't necessarily create a fixed place of business triggering value-added tax, the European Court of Justice said.

The EU's top court, ruling Thursday in response to a request from Austrian tax authorities, said the property must be managed by permanent staff directed by the property owner to qualify as fixed.

The case involved Titanium Ltd., a company based in the Channel Island of Jersey, which leased an Austrian property in 2009 and 2010, according to the ruling. Titanium hired an Austrian company to administer it, carrying out activities such as invoicing rental payments,...

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