Наем срещу подобрения – тълкуване на практиката по ЗДДС
Lease vs improvements: analysis of the VAT act jurisprudence

Summary/Abstract: The present article addresses some of the contradictions existing within the relevant practices of the courts established with respect to determining of the basis for taxation and the date of the VAT taxable event for transactions involving letting out of real estate against consideration in the form of services for repairing and refurbishing of the so rented real estate. According to the jurisprudence of the EU Court of Justice in the cases of barter transactions it is the market value received goods and services that serves as a the basis for taxation but not the market value of the supplied goods and the services rendered. The same court resolves under a certain case that it is not the rental service’s market rent price that shall be considered the counter-consideration but the asset received by the company for the purposes of its economic activities whose equivalent is the value of the re- pair and refurbishment service rendered. At the same time the provision of Art. 26, para. 7 of the VAT Act requires establishing of the value of the goods supplied or rendered services but not of those representing the counter-consideration, ie the basis for taxation of each of the transactions is the market price of the goods supplied or rendered services, determined as at the date on which the tax has become due.

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