Comments on ECG T-643/24: VAT Applies to Statutory Penalties for Unauthorized Use

• VAT applies to copyright infringement fees: The Court ruled that VAT is due on the full compensation, including statutory multipliers or penalties, when protected works are publicly used without a license.
• Unauthorized use constitutes a taxable service: Even though the user acted without a license, the provision of the copyrighted material qualifies as a “service for consideration” under the EU VAT Directive, referencing prior case law (Apcoa Parking Danmark, Fluvius Antwerpen).

• Calculation basis for VAT: The taxable amount includes the full amount charged, including the tripled statutory fee set as a penalty. This multiplier is treated as part of the price of the service, not as an external damages payment.

Source BTW Jurisprudentie

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General Court T-643/24 (Credidam) – Judgment – Unlicensed use of protected works is fully taxable with VAT on all remuneration – VATupdate

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