European Union Gazettes ECJ Preliminary Ruling on Danish VAT Rules for Building Land

The European Union Official Gazette Nov. 11 published a European Court of Justice (ECJ) preliminary ruling on Danish VAT exemption rules applicable to a land transfer under the EU VAT directive. A Danish developer purchased land with an existing and functioning warehouse, with the intent to demolish the warehouse and build apartments on the land. Denmark requested a ruling on whether this land transfer constitutes the sale of building land subject to VAT. The ECJ held that: 1) the sale is considered a sale of an old building and not building land; and 2) the intention to demolish the warehouse ...