A Critical Assessment of the Optional Regime under Article 12 of the VAT Directive (2006/112)

Journal
European Union
European Taxation 2025 (Volume 65), No. 9
In this article, the author undertakes a historical analysis of article 12 of the VAT Directive (2006/112), with a particular focus on its interpretative application by Member States in relation to the taxation of immovable property transactions. In exploring the evolution and legislative rationale of this provision, the article elucidates on the conditions under which persons engaged in occasional sales of immovable property may be classified as taxable persons. The purpose of this inquiry is to demonstrate the significance of this framework for understanding the divergent national approaches within the European Union and to evaluate its broader implications for harmonization and the functioning of the internal market.