Comments on ECJ C-344/22: Spa facilities by a municipality are not a service for consideration if the tourist tax is not linked to the use of the facilities

Gemeinde A is a German municipality that operates a spa business as an unincorporated company under municipal law.
It levies tourist tax on non-residents who use the facilities and participate in events, residents who have their vital interests elsewhere, and non-residents attending conferences.
The tax is not levied on day tourists, non-residents or residents working or training in the municipality.
The income from the tax is used to finance the construction and maintenance of spa facilities that are freely accessible to everyone.
The municipality deducted input tax on all tourism-related services previously provided to it, but the German tax authorities limited the deduction to services where the spa house was rented out for payment.
The CJEU ruled that the provision of spa facilities by a municipality does not constitute a service for consideration if the tourist tax is not linked to the use of the facilities and they are freely accessible to everyone.