SMK kft v Nemzeti Adó- és Vámhivatal

In SMK kft v Nemzeti Adó- és Vámhivatal (C-97/14) (30 April 2015) the CJEU found that the place of supply of manufacturing services performed in Hungary was Hungary even though the manufactured products belonged to a UK company.

SMK a Hungarian company provided services as a subcontractor to its sister company established in the UK SMK UK. SMK UK purchased the raw materials and parts and SMK assembled them to make remote controls. After assembly the remote controls remained on the premises of SMK while the recipient of the service SMK UK sold them to SMK Europe a Belgium company which on-sold them to customers. The products left Hungarian territory and were never transported to the UK; and SMK invoiced SMK UK for the services provided.

The issue was the place of supply of the services provided by SMK....