Supreme Court: preliminary questions to ECJ on the application of a (medical) exemption in the case of a VAT group

Case Background: The Supreme Court is reviewing the applicability of VAT exemption provisions under Article 11 of the VAT Act 1968 for a fiscal unity (VAT group) consisting of Stichting A and B BV, which provide care services. The dispute involves whether the VAT exemptions apply based on the recognition status of the service providers within the group.
Supreme Court’s Doubts: The Supreme Court expressed uncertainty about whether the subject-related conditions for VAT exemptions should be assessed at the level of the entire VAT group or at the individual member level. This concern led to the decision to seek clarification from the Court of Justice of the European Union (CJEU).
Questions for CJEU: The Supreme Court referred two questions to the CJEU regarding the interpretation of the 2006 VAT Directive: (1) whether the exemptions apply only if the services are provided by a legally independent member of the VAT group satisfying all exemption conditions, and (2) if one member meeting the conditions suffices for the entire VAT group’s services to be exempt. The proceedings are stayed pending the CJEU’s ruling on these questions.
- 1. Is Article 11 of the 2006 VAT Directive, read in conjunction with Article 132(1)(b) and (g) of the 2006 VAT Directive, to be interpreted as meaning that the exemptions referred to in those provisions apply only in so far as the services of the VAT group referred to in those provisions are provided for remuneration by a legally independent member of the VAT group who, does it satisfy all the conditions for the application of these exemptions?
- 2. If Question 1 is answered in the negative, is it sufficient, for the applicability of Article 132(1)(b) and (g) and Article 133(a) of the 2006 VAT Directive to all the services provided by the VAT group to third parties for remuneration referred to in those provisions, that only one legally independent member of the VAT group satisfies all the conditions for the application of those exemption provisions?

Source Taxlive