Court of Justice 4 July 2017, C-308/16 (Kozuba Premium Selection sp. z o.o. z siedzibą w Warszawie v Dyrektor Izby Skarbowej w Warszawie.)

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Advocate General Campos Snchez-Bordona argues that Article 135(1)(j) of Directive 2006/112/EC precludes national legislation that restricts the VAT exemption for the supply of buildings by requiring that 'first occupation' be linked to the performance of a taxable activity. The Opinion further suggests that Member States may, under Article 12(2), define a 'conversion' as an upgrade costing at least 30% of the building's initial value, provided such works are substantial and affect structural elements. Consequently, the actual use of a building by its owner for business purposes should be sufficient to constitute first occupation, rendering subsequent supplies exempt regardless of whether the initial use involved a taxable transaction.AI