Promociones y Construcciones BJ 200 SL [2013] EUECJ C-125/12 (13 June 2013)

Promociones y Construcciones BJ 200 SL [2013] EUECJ C-125/12 (13 June 2013)

Article 199(1)(g) of Directive 2006/112/EC covers every sale of immovable property by a judgment debtor during insolvency proceedings, not only those in liquidation, provided the sale is necessary to settle creditors' claims or to enable the debtor to re-establish its activities.

Citation
[2013] EUECJ C-125/12
Parties
Judgment Debtor / Applicant: Promociones y Construcciones BJ 200 SL; Purchaser / Respondent: Banesto S.A.
Jurisdiction
European Union
Judgment Date
13 June 2013
Procedural Posture
Preliminary Ruling (eu Law) / Reference From National Court (juzgado De Lo Mercantil No 1 De Granada)
Outcome
Preliminary ruling issued; Article 199(1)(g) interpreted as covering sales during insolvency proceedings before liquidation, if necessary for creditors or business continuity.
Legal Topics
Value Added Tax (vat), Reverse Charge Mechanism, Insolvency Proceedings, Compulsory Sale Procedure
European Union Law Tax Law Insolvency Law Value Added Tax (vat) Reverse Charge Mechanism Insolvency Proceedings Compulsory Sale Procedure

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Parties

Promociones y Construcciones BJ 200 SL

Judgment Debtor / Applicant

Banesto S.A.

Purchaser / Respondent

Procedural Posture

Preliminary Ruling (eu Law) / Reference From National Court (juzgado De Lo Mercantil No 1 De Granada)

Legal Issues

  1. 1 Interpretation of Article 199(1)(g) of Directive 2006/112/EC regarding VAT liability in compulsory sale procedures during insolvency proceedings
  2. 2 Scope of 'compulsory sale procedure' under EU VAT law

Ratio Decidendi

Article 199(1)(g) of Directive 2006/112/EC covers every sale of immovable property by a judgment debtor during insolvency proceedings, not only those in liquidation, provided the sale is necessary to settle creditors' claims or to enable the debtor to re-establish its activities.

Court Disposition

Preliminary ruling issued; Article 199(1)(g) interpreted as covering sales during insolvency proceedings before liquidation, if necessary for creditors or business continuity.

Orders

  • Article 199(1)(g) of Directive 2006/112/EC must be interpreted as meaning that every sale of immovable property by a judgment debtor carried out not only in the course of the liquidation of the debtor’s assets but also in the course of insolvency proceedings occurring before such liquidation comes within the concept...