VAT calculation on supply of services in case of instalment payment

24. November 2021 | Reading Time: 1 Min

The European Court of Justice (ECJ) on October 28, 2021 brought a verdict in a case (C-324/20) of an instalment payment extending over five years in which it ruled out that the respective VAT is chargeable at the time the supply of service is rendered.

This verdict is the opposite from that made by the ECJ in the case of a player’s agent who was paid over three years for a supply of agency business services to a football club.

However, the ECJ did not specify clear criteria for differentiation in this respect. In practice, it is praised that full VAT can be claimed from taxable persons who are entitled to deduct input VAT at the very beginning of the instalment payment arrangement.