VAT Applies to Unlicensed Use of Copyrighted Works, EU Court Rules in Recent Judgment

The EU Court ruled that the use of protected works without a license is subject to VAT.
The case involved a company providing audiovisual content to guests without the required license and being charged by a collective rights management entity.
The court confirmed that a taxable service exists when there is a direct link between the service provided and the compensation received, regardless of whether the use was authorized or not.
The legality or illegality of the operation does not affect VAT applicability, ensuring equal treatment for all market participants.
The use of protected works without a license does not prevent the application of VAT rules, and it is up to the referring court to verify the circumstances.

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.