Should the value added tax be added to the fee for the conversion of the title to perpetual usufruct of real property into the ownership title? (Comments on the margin of the judgment of the Court of Justice of the European Union in case C-604/19)

Abstract

In its judgment of 25th February 2021, in case C-604/19, the Court of Justice of the European Union acknowledged that conversion of the title to perpetual usufruct of real property into a the full ownership title provided for in national law in return for payment of a fee constitutes a supply of goods, and a local self-government unit being a collector of that fee acts as a taxpayer and not as a public authority. This paper addresses the issue whether, in the light of the above decision, it is admissible for a commune to add the amount of the value added tax to the conversion fee.

Keywords

• conversion fee
• perpetual usufruct title to real property
• ownership title to real property
• value added tax
• Court of Justice of the European Union