Opinion of the Advocate General — ECLI:EU:C:2001:698
Date: 2001-12-13
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Reference for a preliminary ruling
Origin: United Kingdom

Summary of the Judgment 
Tax provisions — Harmonisation of laws — Turnover taxes — Common system of 
value added tax — Exemptions provided for by the Sixth Directive — Extra conditions 
capable of being imposed by the Member States — Bodies managed and administered on 
a voluntary basis — Meaning 
(Council Directive 77/388, Art. 13A(2)(a), second indent) 
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SUMMARY — CASE C-267/00 
On a proper construction of the second 
indent of Article 13A(2)(a) of the Sixth 
Directive 77/388 on the harmonisation of 
the laws of the Member States relating to 
turnover taxes, the condition requiring a 
body to be managed and administered on 
an essentially voluntary basis, the purpose 
of which is to reserve the benefit of the 
exemption for bodies which do not have 
the making of profits for members as their 
objective, refers only to members of that 
body who are designated in accordance 
with its constitution to direct it at the 
highest level, as well as other persons who, 
without being designated by the constitu­
tion, do in fact direct it in that they take the 
decisions of last resort concerning the 
policy of that body, especially in the 
financial area, and carry out the higher 
supervisory tasks. 
In addition, the words 'on an essentially 
voluntary basis' refer to the members who 
compose the organs entrusted with the 
management and administration of a body 
of the kind referred to in that provision and 
those persons who, without being desig­
nated by the constitution, do in fact direct 
it, and refer also to the reward which the 
latter may receive, habitually or excep­
tionally, from that body. 
(see paras 17-18, 23, 26, 28, 
operative part 1-2) 
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