Het Oudeland Beheer BV (CJUE, 28 April 2016, case C-128/14)

The value of a property right granting its holder a right of use over immovable property and the cost of completing the office building built on the land in question may be included in the taxable amount of a self-supply when the taxable person has al-ready paid VAT on that value and on those costs, but also deducted that VAT immediately and in full.

In a situation where a parcel of land and a building under construction on that land have been acquired by way of the grant of a property right giving its holder a right of use over such immovable property, the taxable amount of the self-supply corresponds to the value of the amount to be paid in consideration each year for the remainder of the long lease granting the property right.

The conformity of the French tax authorities’ official guidance, which provides that “When the construction is made by a taxable person to whom the land is leased, the cost price includes the amount of the lease payments related to the lease term” (BOFiP BOI-TVA-IMM-10-20-10) may be called into question.

Michel Guichard

Michel Guichard, Partner, leads the Indirect Tax activity. With more than 30 years’ experience in International and French Tax law, he advises his clients on indirect tax matters. Michel is […]

Odile Courjon

Odile Courjon, Partner, has developed a strong expertise in indirect tax issues (VAT, wage taxes, excise taxes, export control and customs) in France and overseas. She advises her clients in […]

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William Stemmer, Partner, has more than 15 years’ experience in Indirect Tax matters. William particularly specializes in the real estate and financial sectors. William is a lecturer at the University […]

Nicolas Kazandjian

Barrister registered with the Hauts-de-Seine Bar, he started my career in the indirect tax service line of Deloitte Taj in 1999. My current position is Director. My area of expertise […]

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With more than 16 years of experience, Vanessa has extensive expertise in the implementation of international efficiency business models for customs, export control and indirect tax purposes. Her functions notably […]

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Delphine Nicault is an Attorney-at-Law at the French Bar. She joined Deloitte in 2002 and assists her clients on day-to-day VAT issues. She developed an expertise in the VAT and […]