SlideShare a Scribd company logo
Court of Justice of the European Union - Judgment
Régie communale autonome du stade Luc Varenne
Case C-55/14
The Court of Justice of the European Union (CJEU) has issued a judgment in the above case
which related to whether the letting of a stadium (with other services) to a football club and for
only 18 days per year, constituted a letting of immovable property (VAT exempt) or a taxable
supply of services.
The taxpayer acquired a football stadium and paid VAT of €1.3 million on the purchase price. It
reclaimed the VAT paid on its VAT return but the tax authority in Belgium considered that the
taxpayer's supply was, in fact, predominantly, a letting of the property which was exempt from
VAT. As a consequence, the authority considered that the taxpayer was only entitled to reclaim
20% of the input vat incurred on the purchase price and issued assessments for repayment of the
VAT, penalties and interest.
The CJEU considered that, in the circumstances, the taxpayer was supplying something more
than merely the passive letting of the stadium for rent. It also provided services consisting of the
provision of access to the sporting facilities including the supervision, management,
maintenance and cleaning of those facilities. According to its previous case law, the court stated
that, in the absence of quite exceptional circumstances, services linked to the practice of sport
or physical education must, as far as possible, be considered as a whole (ie a single supply). As
such, where 'other' services are provided in addition to making the facilities available, they are
to be regarded as the main service supplied.
The Court therefore concluded that as 80% of the value charged to the football club for the use
of the stadium was associated with these 'other' services, the supply was not to be regarded as
an exempt letting of the property, but as a taxable supply of services. Accordingly, the taxpayer
was entitled to reclaim the VAT it had paid on the acquisition of the stadium.
Comment – The court has made it clear on many previous occasions that strict criteria must
apply for a supply to qualify as a 'leasing or letting of property'. (ie the landlord of property
must have assigned to the tenant, in return for rent and for an agreed period, the right to occupy
his property and to exclude other persons from it). It is for the national courts of each member
state to determine the facts in each case but, in this case, the court considered that the
additional services (of supervision, management, maintenance and cleaning) predominated and
were not to be regarded as letting. Businesses letting sports facilities under similar terms will,
therefore, need to review their VAT position.
For further information in
relation to any of the
issues highlighted in this
Case Alert please
contact:
Stuart Brodie
stuart.brodie@uk.gt.com
Karen Robb
karen.robb@uk.gt.com
Richard Gilroy
richard.gilroy@uk.gt.com
Andrea Sofield
andrea.sofield@uk.gt.com
© 2015 Grant Thornton UK LLP All rights reserved
‘Grant Thornton’ means Grant Thornton UK LLP, a limited liability partnership
Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide
partnership. Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not
liable for one another's acts or omissions.
This publication has been prepared only as a guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining
from acting as a result of any material in this publication.
www.grant-thornton.co.uk
Case Alert

More Related Content

Viewers also liked

Presentation11
Presentation11Presentation11
Presentation11
annaoliveri
 
Tarjeta de presentacion
Tarjeta de presentacionTarjeta de presentacion
Tarjeta de presentacion
Andrea Ruiz Wong
 
Mantenimiento guia
Mantenimiento guiaMantenimiento guia
Mantenimiento guia
Duvan Jett
 
WQ-RSU
WQ-RSUWQ-RSU
Coachi online coachen
Coachi online coachenCoachi online coachen
Coachi online coachen
De Zwerm Groep
 
Laboratorio proteus letras
Laboratorio proteus letrasLaboratorio proteus letras
Laboratorio proteus letras
Karencifuentes2014
 
Mariagede kennedyphotosdartistes
Mariagede kennedyphotosdartistesMariagede kennedyphotosdartistes
Mariagede kennedyphotosdartistes
Bernard Aboab
 
Noche en blanco pto
Noche en blanco ptoNoche en blanco pto
Noche en blanco pto
sobreruedasclasicas
 
Cable utp
Cable utpCable utp
Exposición guamasa(rastillo benéfico)
Exposición guamasa(rastillo benéfico)Exposición guamasa(rastillo benéfico)
Exposición guamasa(rastillo benéfico)
sobreruedasclasicas
 
Que saber
Que saberQue saber
Que saber
REDSENA
 
Tema 4
Tema 4Tema 4
Tema 4
arturolira
 

Viewers also liked (13)

Presentation11
Presentation11Presentation11
Presentation11
 
Tarjeta de presentacion
Tarjeta de presentacionTarjeta de presentacion
Tarjeta de presentacion
 
Mantenimiento guia
Mantenimiento guiaMantenimiento guia
Mantenimiento guia
 
WQ-RSU
WQ-RSUWQ-RSU
WQ-RSU
 
Exposición e 21 e-30
Exposición e 21 e-30Exposición e 21 e-30
Exposición e 21 e-30
 
Coachi online coachen
Coachi online coachenCoachi online coachen
Coachi online coachen
 
Laboratorio proteus letras
Laboratorio proteus letrasLaboratorio proteus letras
Laboratorio proteus letras
 
Mariagede kennedyphotosdartistes
Mariagede kennedyphotosdartistesMariagede kennedyphotosdartistes
Mariagede kennedyphotosdartistes
 
Noche en blanco pto
Noche en blanco ptoNoche en blanco pto
Noche en blanco pto
 
Cable utp
Cable utpCable utp
Cable utp
 
Exposición guamasa(rastillo benéfico)
Exposición guamasa(rastillo benéfico)Exposición guamasa(rastillo benéfico)
Exposición guamasa(rastillo benéfico)
 
Que saber
Que saberQue saber
Que saber
 
Tema 4
Tema 4Tema 4
Tema 4
 

More from Graham Brearley

ITU 10/2018
ITU 10/2018ITU 10/2018
ITU 10/2018
Graham Brearley
 
ITU 07/2018
ITU 07/2018ITU 07/2018
ITU 07/2018
Graham Brearley
 
Case alert: Summit Electrical Installations Ltd Upper Tribunal Judgment
Case alert:   Summit Electrical Installations Ltd Upper Tribunal JudgmentCase alert:   Summit Electrical Installations Ltd Upper Tribunal Judgment
Case alert: Summit Electrical Installations Ltd Upper Tribunal Judgment
Graham Brearley
 
ITU 08/2018
ITU 08/2018ITU 08/2018
ITU 08/2018
Graham Brearley
 
Vat Alert: Reverse Charge on Construction Services
Vat Alert: Reverse Charge on Construction ServicesVat Alert: Reverse Charge on Construction Services
Vat Alert: Reverse Charge on Construction Services
Graham Brearley
 
ITU 09/2018
ITU 09/2018ITU 09/2018
ITU 09/2018
Graham Brearley
 
ITU 06/2018
ITU 06/2018ITU 06/2018
ITU 06/2018
Graham Brearley
 
Case Alert - University of Cambridge
Case Alert - University of Cambridge Case Alert - University of Cambridge
Case Alert - University of Cambridge
Graham Brearley
 
Vat Alert - Cost Sharing Groups
Vat Alert - Cost Sharing GroupsVat Alert - Cost Sharing Groups
Vat Alert - Cost Sharing Groups
Graham Brearley
 
ITU 05/2018
ITU 05/2018ITU 05/2018
ITU 05/2018
Graham Brearley
 
Case Alert - VWFS - Advocate General's opinion
Case Alert - VWFS - Advocate General's opinionCase Alert - VWFS - Advocate General's opinion
Case Alert - VWFS - Advocate General's opinion
Graham Brearley
 
Case Alert - Wakefield College - Court of Appeal
Case Alert - Wakefield College - Court of AppealCase Alert - Wakefield College - Court of Appeal
Case Alert - Wakefield College - Court of Appeal
Graham Brearley
 
Case alert - Ryanair - Advocate General's opinion
Case alert - Ryanair - Advocate General's opinionCase alert - Ryanair - Advocate General's opinion
Case alert - Ryanair - Advocate General's opinion
Graham Brearley
 
ITU 06/2018
ITU 06/2018ITU 06/2018
ITU 06/2018
Graham Brearley
 
Case Alert - Marks & Spencer
Case Alert - Marks & SpencerCase Alert - Marks & Spencer
Case Alert - Marks & Spencer
Graham Brearley
 
Case Alert - Marriott Rewards / Whitbread - Upper Tribunal
Case Alert - Marriott Rewards / Whitbread - Upper TribunalCase Alert - Marriott Rewards / Whitbread - Upper Tribunal
Case Alert - Marriott Rewards / Whitbread - Upper Tribunal
Graham Brearley
 
ITU 04/2018
ITU 04/2018ITU 04/2018
ITU 04/2018
Graham Brearley
 
Case Alert DPAS Ltd - Advocate General's opinion
Case Alert   DPAS Ltd - Advocate General's opinionCase Alert   DPAS Ltd - Advocate General's opinion
Case Alert DPAS Ltd - Advocate General's opinion
Graham Brearley
 
Brexit Alert
Brexit AlertBrexit Alert
Brexit Alert
Graham Brearley
 
Case Alert: Kreuzmayr CJEU Judgment
Case Alert: Kreuzmayr CJEU JudgmentCase Alert: Kreuzmayr CJEU Judgment
Case Alert: Kreuzmayr CJEU Judgment
Graham Brearley
 

More from Graham Brearley (20)

ITU 10/2018
ITU 10/2018ITU 10/2018
ITU 10/2018
 
ITU 07/2018
ITU 07/2018ITU 07/2018
ITU 07/2018
 
Case alert: Summit Electrical Installations Ltd Upper Tribunal Judgment
Case alert:   Summit Electrical Installations Ltd Upper Tribunal JudgmentCase alert:   Summit Electrical Installations Ltd Upper Tribunal Judgment
Case alert: Summit Electrical Installations Ltd Upper Tribunal Judgment
 
ITU 08/2018
ITU 08/2018ITU 08/2018
ITU 08/2018
 
Vat Alert: Reverse Charge on Construction Services
Vat Alert: Reverse Charge on Construction ServicesVat Alert: Reverse Charge on Construction Services
Vat Alert: Reverse Charge on Construction Services
 
ITU 09/2018
ITU 09/2018ITU 09/2018
ITU 09/2018
 
ITU 06/2018
ITU 06/2018ITU 06/2018
ITU 06/2018
 
Case Alert - University of Cambridge
Case Alert - University of Cambridge Case Alert - University of Cambridge
Case Alert - University of Cambridge
 
Vat Alert - Cost Sharing Groups
Vat Alert - Cost Sharing GroupsVat Alert - Cost Sharing Groups
Vat Alert - Cost Sharing Groups
 
ITU 05/2018
ITU 05/2018ITU 05/2018
ITU 05/2018
 
Case Alert - VWFS - Advocate General's opinion
Case Alert - VWFS - Advocate General's opinionCase Alert - VWFS - Advocate General's opinion
Case Alert - VWFS - Advocate General's opinion
 
Case Alert - Wakefield College - Court of Appeal
Case Alert - Wakefield College - Court of AppealCase Alert - Wakefield College - Court of Appeal
Case Alert - Wakefield College - Court of Appeal
 
Case alert - Ryanair - Advocate General's opinion
Case alert - Ryanair - Advocate General's opinionCase alert - Ryanair - Advocate General's opinion
Case alert - Ryanair - Advocate General's opinion
 
ITU 06/2018
ITU 06/2018ITU 06/2018
ITU 06/2018
 
Case Alert - Marks & Spencer
Case Alert - Marks & SpencerCase Alert - Marks & Spencer
Case Alert - Marks & Spencer
 
Case Alert - Marriott Rewards / Whitbread - Upper Tribunal
Case Alert - Marriott Rewards / Whitbread - Upper TribunalCase Alert - Marriott Rewards / Whitbread - Upper Tribunal
Case Alert - Marriott Rewards / Whitbread - Upper Tribunal
 
ITU 04/2018
ITU 04/2018ITU 04/2018
ITU 04/2018
 
Case Alert DPAS Ltd - Advocate General's opinion
Case Alert   DPAS Ltd - Advocate General's opinionCase Alert   DPAS Ltd - Advocate General's opinion
Case Alert DPAS Ltd - Advocate General's opinion
 
Brexit Alert
Brexit AlertBrexit Alert
Brexit Alert
 
Case Alert: Kreuzmayr CJEU Judgment
Case Alert: Kreuzmayr CJEU JudgmentCase Alert: Kreuzmayr CJEU Judgment
Case Alert: Kreuzmayr CJEU Judgment
 

Recently uploaded

Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptxExploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
cosmo-soil
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
nimaruinazawa258
 
How to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete GuideHow to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete Guide
Daniel
 
The Rise and Fall of Ponzi Schemes in America.pptx
The Rise and Fall of Ponzi Schemes in America.pptxThe Rise and Fall of Ponzi Schemes in America.pptx
The Rise and Fall of Ponzi Schemes in America.pptx
Diana Rose
 
Accounting Information Systems (AIS).pptx
Accounting Information Systems (AIS).pptxAccounting Information Systems (AIS).pptx
Accounting Information Systems (AIS).pptx
TIZITAWMASRESHA
 
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
234knry
 
一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
vpqasyb
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
bresciafarid233
 
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
nimaruinazawa258
 
TechnoXander Confirmation of Payee Product Pack 1.pdf
TechnoXander Confirmation of Payee Product Pack 1.pdfTechnoXander Confirmation of Payee Product Pack 1.pdf
TechnoXander Confirmation of Payee Product Pack 1.pdf
richardwellington119
 
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Suomen Pankki
 
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
k4ncd0z
 
Importance of community participation in development projects.pdf
Importance of community participation in development projects.pdfImportance of community participation in development projects.pdf
Importance of community participation in development projects.pdf
krisretro1
 
Dr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment LeaderDr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment Leader
msthrill
 
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
yeuwffu
 
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
28xo7hf
 
Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]
Commonwealth
 
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
Commonwealth
 
Principal of Economics by Gmanwik .pptx
Principal of Economics by Gmanwik  .pptxPrincipal of Economics by Gmanwik  .pptx
Principal of Economics by Gmanwik .pptx
PrashantBhargava14
 

Recently uploaded (20)

Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptxExploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
 
How to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete GuideHow to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete Guide
 
The Rise and Fall of Ponzi Schemes in America.pptx
The Rise and Fall of Ponzi Schemes in America.pptxThe Rise and Fall of Ponzi Schemes in America.pptx
The Rise and Fall of Ponzi Schemes in America.pptx
 
Accounting Information Systems (AIS).pptx
Accounting Information Systems (AIS).pptxAccounting Information Systems (AIS).pptx
Accounting Information Systems (AIS).pptx
 
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
 
一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
 
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
 
TechnoXander Confirmation of Payee Product Pack 1.pdf
TechnoXander Confirmation of Payee Product Pack 1.pdfTechnoXander Confirmation of Payee Product Pack 1.pdf
TechnoXander Confirmation of Payee Product Pack 1.pdf
 
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
 
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
 
Importance of community participation in development projects.pdf
Importance of community participation in development projects.pdfImportance of community participation in development projects.pdf
Importance of community participation in development projects.pdf
 
Dr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment LeaderDr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment Leader
 
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
 
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
 
Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...
 
Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]
 
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
 
Principal of Economics by Gmanwik .pptx
Principal of Economics by Gmanwik  .pptxPrincipal of Economics by Gmanwik  .pptx
Principal of Economics by Gmanwik .pptx
 

Case Alert - Regie communale - Court of Justice

  • 1. Court of Justice of the European Union - Judgment Régie communale autonome du stade Luc Varenne Case C-55/14 The Court of Justice of the European Union (CJEU) has issued a judgment in the above case which related to whether the letting of a stadium (with other services) to a football club and for only 18 days per year, constituted a letting of immovable property (VAT exempt) or a taxable supply of services. The taxpayer acquired a football stadium and paid VAT of €1.3 million on the purchase price. It reclaimed the VAT paid on its VAT return but the tax authority in Belgium considered that the taxpayer's supply was, in fact, predominantly, a letting of the property which was exempt from VAT. As a consequence, the authority considered that the taxpayer was only entitled to reclaim 20% of the input vat incurred on the purchase price and issued assessments for repayment of the VAT, penalties and interest. The CJEU considered that, in the circumstances, the taxpayer was supplying something more than merely the passive letting of the stadium for rent. It also provided services consisting of the provision of access to the sporting facilities including the supervision, management, maintenance and cleaning of those facilities. According to its previous case law, the court stated that, in the absence of quite exceptional circumstances, services linked to the practice of sport or physical education must, as far as possible, be considered as a whole (ie a single supply). As such, where 'other' services are provided in addition to making the facilities available, they are to be regarded as the main service supplied. The Court therefore concluded that as 80% of the value charged to the football club for the use of the stadium was associated with these 'other' services, the supply was not to be regarded as an exempt letting of the property, but as a taxable supply of services. Accordingly, the taxpayer was entitled to reclaim the VAT it had paid on the acquisition of the stadium. Comment – The court has made it clear on many previous occasions that strict criteria must apply for a supply to qualify as a 'leasing or letting of property'. (ie the landlord of property must have assigned to the tenant, in return for rent and for an agreed period, the right to occupy his property and to exclude other persons from it). It is for the national courts of each member state to determine the facts in each case but, in this case, the court considered that the additional services (of supervision, management, maintenance and cleaning) predominated and were not to be regarded as letting. Businesses letting sports facilities under similar terms will, therefore, need to review their VAT position. For further information in relation to any of the issues highlighted in this Case Alert please contact: Stuart Brodie stuart.brodie@uk.gt.com Karen Robb karen.robb@uk.gt.com Richard Gilroy richard.gilroy@uk.gt.com Andrea Sofield andrea.sofield@uk.gt.com © 2015 Grant Thornton UK LLP All rights reserved ‘Grant Thornton’ means Grant Thornton UK LLP, a limited liability partnership Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another's acts or omissions. This publication has been prepared only as a guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material in this publication. www.grant-thornton.co.uk Case Alert