Актуална ДДС практика и решения на СЕС и ВАС по казуси, свързани с облагането на недвижими имоти
Current VAT Practice and Decisions of the ECJ and SAC on Real Estate Taxation Cases

Summary/Abstract: The VAT tax control of the real estate segment of the economy is directly linked to the rate of collection of revenues for the state budgets. At the same time the cases related to the purchase, construction and leasing of different types of real estate are so different, so that they could be interpreted in many ways by the VAT registered entities and the tax administration. Depending on whether a certain property is to be used by an individual or by a company, whether the land plot is for agricultural or development purposes within the urbanized territories of the cities or whether it is recently entered into exploitation could affect the VAT treatment of the supply as VAT taxable or exempt. The founding stone of the VAT legislation of the European Union member states is Directive 2006/112/EC, which is implemented fully into the Bulgarian VAT Act (VATA). For the normal functioning of the European Union and maintaining of the basic European rights and freedoms we need a guarantee that the member states will comply with and apply in a uniform way the provisions of the respective directives, especially in the sphere of harmonization of indirect taxes. One of these guarantees is the European Court of Justice (ECJ) based in Luxembourg. Subject of the present article is a selection of new decisions of the ECJ and the Supreme Administrative Court (SAC), which illustrate the current trends in the practice of the tax (VAT) control on real estate transactions. In the article cases relevant to the right of input VAT credit when an investment project is cancelled, utilization of full input VAT credit on acquired goods and services used partially by third parties and the VAT chargeability on the transfer of shares in companies holding real estate are analyzed.

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