Comments on ECJ C-179/23: Copyright collective management organization supplies to artists a service subject to VAT

Credidam, a Romanian collective management organization for copyrights, collects fees from users and transfers them to artists after deducting a management fee. The organization argues that this fee is outside the scope of VAT, but tax authorities disagree. The court ruled that the management services provided to artists are subject to VAT, as there is a direct link between the services and the consideration received. The compulsory nature of the services and the fact that they cover only the organization’s costs do not change this conclusion. Additionally, Article 28 of the directive is not applicable in this situation.

Source Pawel Mikula

See also

• C-179/23 (Credidam) – Judgment – Payments for by law provided copyrights deducted by a management fee are taxable transactions

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