- A non-profit association organized training courses co-financed by grants and used third-party trainers.
- The association treated the training fees as taxable services, paid the tax, and deducted input VAT. The tax authorities want to deny the deduction claiming no economic activity since the association cannot make a profit and did not provide the training itself.
- However, according to the CJEU, the training courses invoiced by the association, which were subcontracted and received subsidies, constitute services supplied for consideration.
- Subsidies from a European fund are included in the taxable amount.
- The status of a non-profit association does not prevent it from being considered as carrying out an economic activity.
Source BTW jurisprudentie
See also
- ECJ C-87/23 (Latvijas Informācijas un komunikācijas tehnoloģijas asociācija) – Judgment – Subsidies paid by a fund to specific service providers for a particular service are included in the taxable amount
- Roadtrip through ECJ VAT Cases – Focus on Taxable Amount – General Rule (Art. 73)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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