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Parliamentary questions
28 February 2018
E-001267-18
Question for written answer
to the Commission
Rule 130
Jean-Paul Denanot (S&D)

 Subject:  Margin VAT scheme and double taxation on the sale/purchase of building land
 Answer(s) 

The sale of building land by taxable persons is, in principle, subject to VAT on the sale price. Article 392 of Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, however, makes it possible for Member States to apply a margin VAT scheme to the sale of building land purchased for resale by a taxable person who could not claim back the VAT paid on that purchase.

This is the practice in the UK, for example.

It is also the line taken in the EU Court of Justice judgment of 3 March 2011 on the margin scheme for second-hand goods (Case C-203/10), according to which there is no risk of double taxation.

Can the Commission confirm that the margin VAT scheme does not apply to building land purchases for resale when the original purchase was not subject to VAT?

Original language of question: FR 
Last updated: 13 March 2018Legal notice