Keywords
Summary

Keywords

1. 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 - Non-profit-making organisations - Definition - Optional condition providing for a prohibition on systematically aiming to make a profit - Scope

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

2. Tax provisions - Harmonisation of laws - Turnover taxes - Common system of value added tax - Supply of services for consideration - Definition - Sports facilities made available for a fixed annual subscription fee - Included

(Council Directive 77/388, Art. 2(1))

Summary

1. Article 13A(1)(m) of the Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes is to be interpreted as meaning that the categorisation of an organisation as non-profit-making must be based on all the organisation's activities, including those which it provides by way of extension to the services covered by that provision.

That categorisation may be made even if the organisation systematically seeks to achieve surpluses, as long as those profits are not distributed as profits to its members but are used for the purposes of the provision of its services. The first part of the optional condition set out in the first indent of Article 13A(2)(a) of Directive 77/388, which provides that the organisations in question must not systematically aim to make a profit, is to be interpreted in the same way.

( see paras 21-22, 28, 35, operative part 1-2 )

2. Article 2(1) of the Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes, under which the supply of goods or services effected for consideration is subject to value added tax, is to be interpreted as meaning that the annual subscription fees of the members of a sports association can constitute the consideration for the services provided by the association, even though members who do not use or do not regularly use the association's facilities must still pay their annual subscription fees. There is a direct link between the subscription fees paid by members and the services which the association provides where those services are constituted by the making available to its members, on a permanent basis, of sports facilities and the associated advantages and not by particular services provided at the members' request.

( see paras 40, 42, operative part 3 )