EGC T-915/25 (Fundacja K.) – Questions – Whether sub-licensing copyrights qualifies as a VAT-exempt cultural service

The General Court issued the preliminary ruling request in the case T-915/25 (Fundacja K.).

Articles in the EU VAT Directive 2006/112/EC

Article 132(1)(n) of the EU VAT Directive 2006/112/EC

Article 132

1. Member States shall exempt the following transactions:

(n) the supply of certain cultural services, and the supply of goods closely linked thereto, bybodies governed by public law or by other cultural bodies recognised by the Member Stateconcerned;

Facts and background

Foundation’s Purpose: The ‘K.’ Foundation is engaged in cultural activities, promoting Polish comic book artists and preserving memorabilia related to the work of author J.C.
Sub-Licensing Activities: The Foundation has the right to sub-license J.C.’s copyrights, allowing others to use excerpts from his works in various cultural formats, such as publications and performances.
Tax Authority Ruling: The Director of the National Tax Information Service ruled that the Foundation’s activities do not qualify as cultural services for VAT exemption, despite recognizing it as a cultural institution.
Court Proceedings: The Wojewódzki Sąd Administracyjny w Gdańsku upheld the tax authority’s position, asserting that the Foundation’s sub-licensing constitutes commercial activity rather than cultural activity.
Preliminary Ruling Request: The Supreme Administrative Court of Poland has referred a question to the Court of Justice of the European Union to clarify whether sub-licensing copyrights qualifies as a VAT-exempt cultural service, staying proceedings until a ruling is provided.

Questions

Must Article 132(1)(n) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1 as amended) be interpreted as meaning that the phrase “the supply of certain cultural services” refers to the sub-licensing of an author’s copyrights, which covers the adaptation of the author’s works in order to create a new work or cultural event, as well as the use of excerpts from the author’s works on the packaging of commercial products, in the arrangement of commercial event spaces, and in the advertising and promotion of commercial products for commercial events?

Source

Curia

Other ECJ case referred to:

Case C-592/15 (CJEU): This case addressed the interpretation of “certain cultural services” under Article 13A(1)(n) of the Sixth Directive on VAT. The ECJ ruled that this provision is not of direct effect, meaning it cannot be directly invoked by a cultural body in the absence of national implementation. This case highlights the complexities surrounding VAT exemptions for cultural services.
Case C-4/94 (CJEU): In this case, the ECJ ruled on the interpretation of the term “cultural services” in relation to VAT exemptions, emphasizing that the exemption should apply to services that contribute to the dissemination of culture. This case is often cited to clarify what constitutes a cultural service under EU law.
Case C-453/03 (CJEU): This case involved the interpretation of exemptions for services provided by bodies governed by public law and the conditions under which these exemptions apply. It provides insights into how the Court assesses the nature of services related to cultural activities.