Abstract

This study relates to article 2 pt. 4 VAT in regard to the definition of a first settlement, which involves the decision of CJEU of 16.11.2017, C-308/16. However, the definition is left with a questionable term “improving a building over 30% of initial value”, which relates to capital assets. Therefore, according to the author, tax authorities incorrectly claim that beyond the scope of this regulation there are commercial goods. Such a viewpoint violates provisions of VAT Directive which regulate the issue regarding exemption for supplies of buildings and constructing.