- The European Court of Justice clarified that cost-sharing groups can benefit from VAT exemption if their services are directly necessary for members’ exempt activities, even if not exclusively used for those activities.
- The ruling rejected stricter national standards, like Spain’s, that required services to be “directly and exclusively” used for exempt activities.
- Support services such as cleaning can qualify for the exemption if they enable or facilitate the exempt activities of group members.
- Concerns about competition do not automatically justify excluding such services from the exemption.
- The decision provides clarity for Member States and cost-sharing entities, especially in healthcare and education, on structuring VAT-exempt arrangements.
Source: meridianglobalservices.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.
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