The ECJ received preliminary questions on 7 September 2018 in case C-488/18 (Golfclub Schloss Igling), regarding the application of the VAT exemption for non-profit organizations, exploiting a golf course.
Facts (simplified):
- Golfclub Schloss Igling exploits a golf course. As such it charges a green fee for the use the golf course, and it charges fees for the loan of golf balls, the organization of golf tournaments and events, the rental of caddies and the sale of golf clubs.
- The tax authorities are of the opinion that VAT should be charged on these services. However, Golfclub Schloss Igling argues that it is a non-profit-making organization, which is exempt from VAT on the basis of article 132(1)m of the VAT Directive.
- As this Article is a “shall rule”, the question is if Golfclub Schloss Igling can rely on this article and it’s direct effect/application if this article is not translated into the national VAT law.
[ Article 132(1)m of the VAT Directive:
1. Member States shall exempt the following transactions: (…)
(m) the supply of certain services closely linked to sport or physical education by non-profit-making organisations to persons taking part in sport or physical education;]
Questions (summarized):
The following questions are being asked to the ECJ:
- Does Article 132 (1) (m), have direct effect, so that non-profit institutions may rely directly on this provision in the absence of conversion into national law?
- If yes, can Member States lay down their own conditions for an organisation to qualify as a ‘non-profit institution’?
- If that concept is to be interpreted autonomously, must a non-profit institution have access to a scheme for the event of dissolution, under which it must transfer its existing assets at that time to another non-profit-making organization promoting sport and physical education?
Source: MinBuza (Dutch)
