- Case involves a Latvian non-profit organization (X) organizing training projects with subsidies
- X subcontracted third-party companies to provide training as they did not have trainers
- X treated fees for training as taxable services, paid taxes, and claimed input tax deduction
- Latvian tax authority denied input tax deduction, claiming no economic activity
- Question is whether X can be considered a taxable person conducting economic activity
- Latvian court referred questions to ECJ
- ECJ ruled that services provided by X, subcontracted and subsidized, are taxable
- Subsidies received by X from European funds are considered third-party payments
- Non-profit status does not prevent entity from being considered a taxable person if engaged in economic activity
Source: nlfiscaal.nl
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.
