- The EU Court of Justice ruled that the collective management of copyright by an entity is subject to VAT as it constitutes a service for which rights holders pay a management fee.
- The court found that the fee paid by rights holders to the entity is consideration for a service subject to VAT, regardless of being determined by law.
- The direct relationship between the management services provided by the entity and the fee paid by rights holders determines the VAT relevance of the entity’s activities.
- The fact that the entity’s services are “accessory” to VAT-exempt operations does not exempt them from VAT liability.
Source: eutekne.info
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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