PG电子

The ECJ was asked to rule on whether the bus transport provided as part of an airport parking service was a separate supply to that of parking. The ECJ held that there was a 鈥渟ingle complex supply of services in which the parking element is predominant鈥�.

The ECJ made a significant point at para 31 of the judgment where the court states: 鈥渢he fact that, in other circumstances, the elements in issue can be or are supplied separately is of no importance, given that possibility is inherent in the concept of a single composite transaction鈥�. This reinforces the principle of looking at the economic reality of the situation rather than artificially separating out elements of a single supply.

The ECJ also considered the application of the principle of fiscal neutrality is not a primary issue when considering the supply position because 鈥榓 complex supply of services consisting of separate elements is not automatically similar to the supply of those elements separately鈥� leading to a 鈥榥ecessarily鈥� different tax treatment (paras 38 and 39 refer). Fiscal neutrality is only a relevant consideration when two supplies are in competition with each other.