- CJEU Ruling on VAT for Public Broadcasting in Denmark: The Court of Justice of the European Union (CJEU) upheld Denmark’s right to levy VAT on the mandatory public service broadcasting contribution, despite the absence of a direct supply of services to individual consumers. This ruling allows Denmark to continue this practice as long as the contribution scheme has remained largely unchanged since 1978.
- Conditions for Continued VAT Application: The CJEU specified that VAT can be charged if the scheme was already taxed as of January 1, 1978, and if its core structure has not significantly altered, aside from adaptations for technological advancements (e.g., smartphones). The financing of primarily public broadcasters is also a key criterion for maintaining VAT applicability.
- Clarification of VAT Directive Provisions: The judgment clarifies the application of Article 370 of the VAT Directive, confirming that older VAT schemes can continue under specific conditions. It emphasizes that minor changes in the use of the collected contributions or limited support for other public institutions do not invalidate the scheme’s VAT status.
Source BTW jurisprudentie
Other sources
- The ECJ ruled in favor of Denmark, confirming that the public broadcasting contribution remains VAT-liable under Article 370.
- The ECJ ruling in Case C-573/22 provides significant clarity on the VAT treatment of mandatory public broadcasting contributions.
- The plaintiffs, Danish taxpayers, argued that VAT should not apply to the charge, as it did not meet the standard criteria for a taxable transaction under Article 2(1)(c) of the VAT Directive.
- The ECJ’s decision holds broader implications, particularly concerning how Member States can maintain historical VAT regimes, the impact of technological advancements on VAT classifications, and the relationship between tax revenue allocation and VAT liability.
- Denmark’s public broadcasting contribution dates back nearly a century.
- The introduction of VAT in Denmark in 1967 led to VAT being applied to this charge, classifying it as a taxable service.
- When Denmark joined the European Economic Community in 1973, its VAT system was gradually aligned with the EU VAT framework, culminating in the adoption of Directive 2006/112/EC.
- Since VAT had been applied to the public broadcasting levy before January 1, 1978, Denmark was permitted to continue taxing it under Article 370 of the VAT Directive.
- By the early 2000s, Denmark’s media landscape underwent significant changes.
Source: vatabout.com
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.
