Recent Case On Value Added Tax (vat) Obligation On E-commerce TransactionsThe European Court of Justice (ECJ) examined the issue of the legality of levying a Value Added Tax (VAT) obligation on E-commerce transactions on May 12, 2005 in Levob Verzekeringen BV and OV Bank NV v Staatssecretaris van Financien, Case No. C-41/04. The case came before the court for an interpretation of Sixth Council Directive 77/388/EEC related to the supply of standard software package which was subsequently customised to meet the purchaser's requirements. The issue raised was whether there were two different supplies namely, the supply of the standard software and the supply of the programming of customised software.
The following questions have been addressed in this article:What question was raised by the ECJ?
What are the relevant facts of the case?
What was the holding of the ECJ?