Transfer of heat to another business as a free transfer of value

The European Court of Justice must examine whether the free supply of heat to another business is subject to VAT as a free transfer of value.

The Federal Fiscal Court has referred the question to the European Court of Justice (ECJ) as to whether the free supply of heat from the biogas plant of one entrepreneur to another entrepreneur for the latter's business activity is subject to VAT as a free supply. The Federal Fiscal Court also wants to know whether it is important whether the recipient uses the heat for purposes that entitle him to deduct input tax. The ECJ must also decide how the cost price for the valuation of the heat supply is to be determined in such a case.