Keywords
Summary

Keywords

Tax provisions - Harmonisation of laws - Turnover taxes - Common system of value added tax - Exemptions provided for by the Sixth Directive - Exemption for certain services closely linked to sport or physical education supplied by non-profit-making organisations to persons taking part in those activities - National legislation restricting the exemption to private establishments with membership fees not exceeding a certain amount - Not permissible

(Council Directive 77/388, Art. 13(A)(1)(m) and Art. 13(A)(2)(a), third indent)

Summary

A Member State which provides that VAT exemption for services closely linked to sport or physical education applies only to those private establishments whose membership fees do not exceed a specified amount fails to fulfil its obligations under Article 13(A)(1)(m) of the Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes.

The conditions which may be laid down pursuant to Article 13(A)(1) of the Sixth Directive do not in any way affect the definition of the subject-matter of the exemptions envisaged by that provision, but are intended to ensure the correct and straightforward application of the exemptions and refer to measures intended to prevent any possible evasion, avoidance or abuse.

To apply the criterion of the amount of membership fees may lead to results contrary to Article 13(A)(1)(m) of the Sixth Directive: it may result, first, in a non-profit-making body being excluded from the benefit of the exemption provided for by the provision and, secondly, in a profit-making body being able to benefit from it. Moreover, there is nothing in that provision to the effect that a Member State, when granting an exemption for a certain supply of services closely linked to sport or physical education provided by non-profit-making bodies, may make that exemption subject to any conditions other than those laid down in Article 13(A)(2) of the Sixth Directive.

The third indent of Article 13(A)(2)(a) of the Sixth Directive does not imply that a Member State, by making the exemption envisaged in Article 13(A)(1)(m) subject to one or more conditions laid down in paragraph 2(a) of that provision, may alter the scope of the latter. Moreover, Article 13(A)(2)(a) excludes a restriction of the exemption to private sports bodies or establishments of a social nature which charge membership fees not exceeding a certain amount without taking into account the nature and particular circumstances of each sporting activity.