Comments on ECJ case T‑575/24: EU AG: VAT Applies to Paid Services by Associations to Members, Not Internal Transactions

• Digipolis België supports the cities of Ghent and Antwerp and their public welfare centers with ICT services and digital transformation.
• In 2017, a tax audit led the Belgian tax authority to claim that Digipolis’s fees to its members are subject to VAT.
• The dispute centers on the “emanation theory,” which treats services to members as internal and not taxable under Belgian administrative tolerance.
• The Antwerp Court of Appeal questioned if this tolerance aligns with the EU VAT Directive and referred the matter to the EU Court of Justice.
• Advocate General Martín y Pérez de Nanclares advised that the VAT Directive opposes national practices treating such services as non-taxable if the association is an independent taxable person.

Source: nlfiscaal.nl

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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