Reference to the EU Court of Justice

Case no. BS-12663/2019-HJR
Order made on 7 February 2020

Apcoa Parking Danmark A/S
vs.
The Danish Ministry of Taxation

The case concerns the issue of whether Apcoa Parking Danmark A/S is required to pay VAT on penalties imposed for violation of regulations on parking on private property. These penalties have previously been regarded as being subject to VAT under the Danish VAT Act.

However, considering the provisions of the relevant EU Directive, the Supreme Court has doubts about whether penalties should be regarded as consideration for the supply of services subject to VAT.

Against this background, the Supreme Court has decided to refer the following question to the EU Court of Justice.

“Is Article 2(1)(c) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax to be interpreted as meaning that penalties for violation of regulations on parking on private property amount to consideration for the supply of services with the effect that this qualifies as a transaction subject to VAT?”