General Court T-558/24 (Studieförbundet Vuxenskolan Riksorganisationen) – Questions – Criteria for VAT exemption impact on competition assessment

On October 14, 2024, the questions in the case were published in the Official Gazette of the European Union.

Article in the EU VAT Directive 2006/112/EC

Article 132
1. Member States shall exempt the following transactions

(f) the supply of services by independent groups of persons, who are carrying on an activity which is exempt from VAT or in relation to which they are not taxable persons, for the purpose of rendering their members the services directly necessary for the exercise of that activity, where those groups merely claim from their members exact reimbursement of their share of the joint expenses, provided that such exemption is not likely to cause distortion of competition;

Facts

Not yet published on Curia.

Further details can be found: Supreme Administrative Court Seeks EU Ruling on VAT Exemption for Independent Groups

Questions

Can services which are supplied to the members of an independent group be regarded as directly necessary within the meaning of Article 132(1)(f) of the VAT Directive, where the services are not specific to the public interest activities carried on by the members but are of the more general nature that are also in demand by undertakings which do not carry on such public interest activities?
What are the criteria to be taken into account, in the context of the assessment of whether the grant of an exemption under Article 132(1)(f) is likely to distort competition, when determining whether an independent group is assured of keeping its members’ custom irrespective of whether or not the services are taxable?

See also