ECJ ruling on VAT treatment of subsidized training projects organized by non-profit associations

Case involves a Latvian non-profit organization (X) organizing training projects with subsidies
X subcontracted third-party companies to provide training as they did not have trainers
X treated fees for training as taxable services, paid taxes, and claimed input tax deduction
Latvian tax authority denied input tax deduction, claiming no economic activity
Question is whether X can be considered a taxable person conducting economic activity
Latvian court referred questions to ECJ
ECJ ruled that services provided by X, subcontracted and subsidized, are taxable
Subsidies received by X from European funds are considered third-party payments
Non-profit status does not prevent entity from being considered a taxable person if engaged in economic activity

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.