Analysis: “The VAT Effective Use and Enjoyment-Rule in the SK Telecom case” by Darya Budova
On 15 April 2021, the Court of Justice delivered its judgment in the SK Telecom Co. Ltd case (C-593/19). In this case, the Court of Justice provides guidance on the scope of the so-called effective use and enjoyment-rule established in VAT Directive 2006/112.
SK Telecom is a Korean telecommunications operator that provided roaming services to its Korean customers while they were traveling in the EU. SK Telecom considered that the roaming services provided to its customers were not subject to VAT in the EU under the general VAT rules. Austrian tax authorities considered otherwise by application of the effective use and enjoyment rule.
Turning to the legal framework in this case, generally telecommunication services provided