- 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.
Source BTW jurisprudentie
See also
- Summary of C-344/22 (Gemeinde A)– Access for free to spa facilities is not a taxable transaction if remuneration is a tourist tax
- ECJ C-344/22 (Gemeinde A)- Judgment – Access for free to spa facilities is not a taxable transaction if remuneration is a tourist tax
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
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