Advocate General Kokott concludes that P GmbH is not liable for VAT if its customers are not entitled to deduct input tax. Insofar as there are VAT taxpayers among the visitors to the playground, a tax debt does arise.
P GmbH operates an indoor playground. Although the entrance fees for the indoor playground are subject to the reduced VAT rate of 13%, P GmbH applies the normal VAT rate of 20%. P GmbH requests a refund of the excess VAT paid. According to the Austrian tax authorities, however, there is no right to a refund. The Austrian court is asking questions for a preliminary ruling in this case.
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