Comments on AG Opinion in C-87/23 – VAT Aspects of Subsidized Training Projects; Three-Party Contract

• Case involves a Latvian non-profit organization (X) organizing subsidized training programs
• X hired third-party companies to conduct the training sessions
• X treated fees paid by participants as taxable services and paid taxes on them
• Tax authority denied X’s right to deduct input VAT, claiming no economic activity was present
• Question is whether X can be considered a taxable person conducting economic activity
• Advocate General Kokott concludes that X’s activities qualify as economic activity
• Personal presence of service provider is not required under VAT directive
• Subsidies paid by a fund to service providers are considered part of taxable amount under VAT directive
• Case falls under VAT category for tax period 2016
• Opinion of by Advocate General of the European Court of Justice on March 7, 2024, under case number C-87/23

Source: nlfiscaal.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.

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