Supreme Administrative Court Seeks EU Ruling on VAT Exemption for Independent Groups

Preliminary Ruling Requested: The Supreme Administrative Court has sought a preliminary ruling from the European Court of Justice regarding the interpretation of VAT exemptions for certain services supplied within independent groups.
General VAT Rules: While the provision of services is generally subject to VAT, exceptions exist for services provided within independent groups under specific conditions, including public interest activities that are not subject to VAT.
Conditions for Exemption: To qualify for the exemption, group members must engage in public interest activities, the services provided must be directly necessary for these activities, and the application of the exemption must not risk distorting competition.
Non-Profit Association Case: The case involves a non-profit association that inquired whether services in accounting, payroll, HR, and IT meet the exemption criteria, but the Tax Court ruled that these services are not specific enough to qualify.
Clarification Sought from EU Court: The Supreme Administrative Court’s request includes determining whether the contested services are directly necessary for the tax-exempt activities and clarifying the competition distortion requirement related to the exemption.