Data centers can’t benefit from value-added tax exclusions and aren’t subject to special provisions for immovable property under European law, Europe’s top court ruled Thursday.
It was an important ruling for the data storage industry, where businesses house and maintain customers’ computer servers in centralized locations.
The case heard by the European Court of Justice involved a dispute between Finland’s tax authority and a national telecommunications company that operates data warehouses for local and international information technology clients.
The tax authority claimed that VAT was payable in Finland, pointing to EU law that services connected to immovable property ...
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