This European Court of Justice ruling concerns the interpretation of EU VAT Directive 2006/112. The case involved a building contract terminated by the client before completion. The court had to decide whether the amount owed to the contractor, less savings from incomplete work, constituted taxable remuneration under the Directive. The court held that this amount is indeed taxable as it represents consideration for a service the contractor was prepared to provide. This decision clarifies the application of VAT in situations of early contract termination.

Case C - 622 23 Rhtb (28 November 2024)

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