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VAT

Cost sharing and VAT, a tax zombie alive and kicking: new ECJ judgment

The ECJ judgment of 20-11-2019, Infohos, C-400/18, has returned to the exemption provided for in art.132.1.f) of the VAT Directive for groups of entities who carry out exempted activities that do not enable them to deduct input VAT.

The ECJ has concluded that said article opposes a national norm which makes the recognition of the exemption conditional on the requirement that autonomous groups of people provide services exclusively to their members, so that groups that also provide services to non-members are fully subject to VAT, including with regard to those services provided to their members.

Source Francisco Javier Sánchez Gallardo