European Union Gazettes ECJ Judgment on Portuguese Reduced VAT Rate for Residential Building Renovations

The European Union Official Gazette Feb. 26 published the European Union Court of Justice (ECJ) judgment for Case No. C-433/22, on Portugal’s reduced VAT rate rules for building renovation and repair services. The taxpayer, a Portugal-based commercial company, supplied renovation and repair services to buildings of three commercial companies that were the proprietors of the immovable property being renovated. The Tax Agency refused to apply the reduced VAT rate, on the basis that the reduced rate only applied to properties that were used for residential purposes at the time of the services. Upon a request for a preliminary ruling, the ...