VAT, Nutrition Counselling & Fitness Studios: Frenetikexito (C-581/19)

By Sérgio Vasques (Catholic University, Lisbon)

On 4 March 2021, the CJEU issued a ruling on Frenetikexito (Case C-581/19) that is bound to throw Portuguese gym-goers off-balance. For some time, the Portuguese tax authorities have been assessing VAT on nutrition counselling provided by fitness studios on the basis such services are dependent and ancillary to fitness training. In a series of recent cases, national courts have taken the view that fitness training and nutrition counselling are independent supplies and that, as such, nutrition counselling can benefit from the exemption applicable to medical care. However, the CJEU’s ruling in Frenetikexito (Case C-581/19) may force national courts to rethink their position. The case also provides another example of how treacherous VAT exemptions can be.

Source: kluwertaxblog.com

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