Article from the editorial board on May 8, 2022
Image credit: ONYXprj – stock.adobe.com
For CJEU, repair and refurbishment services for elevators in apartment buildings, excluding maintenance services for such elevators, fall under the category of renovation and repair services for private residences that may benefit from a reduced VAT rate.
For the record, it seems from Article 106 of the VAT Directive which states Temporary arrangements for certain labour-intensive serviceswhich – which Private home renovation and repair services Referred to in Point 2 of Annex IV to this Directive You can take advantage of the reduced VAT rate.
A dispute arose between a Portuguese company that specifically provides elevator repair and maintenance services and the tax authorities regarding the applicable VAT rate.
The Portuguese court that examined the dispute expressed doubts as to whether the renovation and repair services for the lifts in question fell under this Fourth Annex, point 2.
Under these circumstances, the Supremo Tribunal Administrativo (Supreme Administrative Court) decided to suspend the proceedings and refer the matter to the CJEU.
The court has just passed its ruling:
