- Rider X operated a training stable for competition horses in the Netherlands.
- He entered into agreements with the owners of the horses, who were based in Germany, where they provided the horses to X and relinquished their right to give instructions on training and competing.
- The owners covered the maintenance, competition, transportation, farrier, and veterinary costs, while X was responsible for the expenses he incurred as a rider to compete with the horses.
- It was agreed that X would receive half of all cash prizes and prizes in kind won by the horses on behalf of the owners.
- The owners assigned half of their future rights to the prize money and ownership of the prizes in kind to X.
- X could offset the owners’ payment rights against counterclaims.
- The German Tax Authority imposed VAT assessments on X, which he appealed but was unsuccessful.
- The question in the appeal was whether X provided services to the horse owners by giving up half of the prize money.
- The EU Court of Justice ruled that when the owner of a training stable provides a single service consisting of stabling, training, and participation in competitions, it is considered a taxable service if the owner is compensated by giving up 50% of the prize money earned by the horses.
Source: futd.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
