Keywords
Summary

Keywords

Tax provisions - Harmonisation of laws - Turnover taxes - Common system of value added tax - Exemptions provided for by the Sixth Directive - Extra conditions capable of being imposed by the Member States - Bodies managed and administered on a voluntary basis - Meaning

(Council Directive 77/388, Art. 13A(2)(a), second indent)

Summary

$$On a proper construction of the second indent of Article 13A(2)(a) of the Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes, the condition requiring a body to be managed and administered on an essentially voluntary basis, the purpose of which is to reserve the benefit of the exemption for bodies which do not have the making of profits for members as their objective, refers only to members of that body who are designated in accordance with its constitution to direct it at the highest level, as well as other persons who, without being designated by the constitution, do in fact direct it in that they take the decisions of last resort concerning the policy of that body, especially in the financial area, and carry out the higher supervisory tasks.

In addition, the words on an essentially voluntary basis refer to the members who compose the organs entrusted with the management and administration of a body of the kind referred to in that provision and those persons who, without being designated by the constitution, do in fact direct it, and refer also to the reward which the latter may receive, habitually or exceptionally, from that body.

( see paras 17-18, 23, 26, 28, operative part 1-2 )