Keywords
Summary

Keywords

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Tax provisions ° Harmonization of laws ° Turnover tax ° Common system of value added tax ° Exemptions provided for by the Sixth Directive ° Strict interpretation ° Exemption of services linked to welfare and social security supplied by bodies governed by public law or other organizations recognized as charitable ° Services supplied by a natural person ° Excluded

(Council Directive 77/388, Art. 13 A(1)(g))

Summary

The exemptions provided for in Article 13 of the Sixth Directive (No 77/388) on the harmonization of the laws of the Member States relating to turnover taxes derogate from the general principle that value added tax is to be levied on all services supplied for consideration by a taxable person. The terms used to specify those exemptions must therefore be strictly interpreted. Consequently, and in view of the fact that some of the exemptions mentioned in Article 13 A(1) expressly refer to the concept of "body" or "organization", whereas others do not, exemption may be claimed in the first case only by legal persons whereas in the second it may also be claimed by natural persons, including traders.

A trader who is a natural person does not fall within the scope ratione personae of Article 13 A(1)(g) of the directive, which concerns services closely linked to welfare and social security supplied by bodies governed by public law or other organizations recognized as charitable by the Member State concerned; he cannot therefore claim exemption under that provision.