- 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
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.
