Hannes Snellman Advised Citycon’s Subsidiary in District Court VAT-Related Dispute Concerning Easement Rights

Hannes Snellman assisted real estate investor Citycon’s subsidiary in a court proceeding concerning whether the price charged for easement rights should include VAT or not and whether such VAT can be claimed against the purchaser afterwards. From VAT perspective the main question concerned how value-added tax behaves in connection with compensation charged for easement rights, because VAT legislation relating to real estate business partly differs from VAT legislation applicable to other business activities. The dispute concerned whether the seller had the right to subsequently demand payment of VAT. In the process, Hannes Snellman’s tax and dispute resolution teams worked together on how a previously concluded agreement should be interpreted.

The opposing party filed a lawsuit against Citycon’s subsidiary in the district court, and the district court ruled in favour of Citycon’s subsidiary and interpreted the matter in the same way as the Hannes Snellman teams.

Our client was advised by Hannes Snellman’s tax and dispute resolution teams: Marika Sorsa, Piia Ahonen, and Viktor Saavola.