- The Dutch Advocate General held that the Netherlands cannot automatically exclude categories of services, such as IT, from the VAT cost-sharing exemption without a case-by-case assessment of whether competition would actually be distorted.
- The Opinion says Article 132(1)(f) of the VAT Directive requires an actual, factual assessment of market distortion in each case, not a blanket statutory exclusion.
- If adopted by the Supreme Court, cooperation structures using the exemption may challenge fixed Dutch exclusions and invoke the Directive directly where they can show no genuine risk of competition distortion.
- The case involved a public-law cooperation body of 21 Dutch water authorities providing shared IT-related services under various projects, with the dispute focused on whether those services could be denied the exemption under Dutch rules.
Source: vatabout.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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