Comments on AG Opinion in C-87/23 – VAT Aspects of Subsidized Training Projects; Three-Party Contract

Case involves a Latvian non-profit organization (X) organizing subsidized training programs
X hired third-party companies to conduct the training sessions
X treated fees paid by participants as taxable services and paid taxes on them
Tax authority denied X’s right to deduct input VAT, claiming no economic activity was present
Question is whether X can be considered a taxable person conducting economic activity
Advocate General Kokott concludes that X’s activities qualify as economic activity
Personal presence of service provider is not required under VAT directive
Subsidies paid by a fund to service providers are considered part of taxable amount under VAT directive
Case falls under VAT category for tax period 2016
Opinion of by Advocate General of the European Court of Justice on March 7, 2024, under case number C-87/23

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.