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Document 62008CJ0267

Summary of the Judgment

Judgment of the Court (Second Chamber) of 6 October 2009.
SPÖ Landesorganisation Kärnten v Finanzamt Klagenfurt.
Reference for a preliminary ruling: Unabhängiger Finanzsenat, Außenstelle Klagenfurt - Austria.
VAT - Entitlement to deduct input tax - Concept of ‘economic activities’ - Regional groups of a political party - Advertising activities benefiting the party’s local groups - Expenditure relating to those activities exceeding income.
Case C-267/08.



Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Economic activities within the meaning of Article 4(1) and (2) of the Sixth Directive

(Council Directive 77/388, Art. 4(1) and (2))


Article 4(1) and (2) of 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 external advertising activities carried out by a section of a Member State’s political party is not to be regarded as an economic activity. Such activities do not allow the generation of revenue on a continuing basis, as the only income obtained on a continuing basis comes from public funding and the party members’ contributions, that income having been raised in particular to cover losses made by the external advertising activity. By such advertising activities, a political party carries out a communication exercise in keeping with attainment of its political objectives, which seeks to spread its ideas as a political organisation. In carrying out such activities, a political party does not however participate in any market.

(see paras 21, 23-24, operative part)