Opinion of the Advocate General — ECLI:EU:C:2000:504
Date: 2000-09-26
Language of the case: Swedish
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Reference for a preliminary ruling
Origin: Sweden

Summary of the Judgment 
1. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of 
value added tax — Exemptions provided for by the Sixth Directive — Exemption for 
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SUMMARY — CASE C-150/99 
certain services closely linked to sport or physical education supplied by non-profit-
making organisations to persons taking part in those activities — Exemption for the 
letting of immovable property — Scope — General exemption for supply of premises 
and other facilities for the practice of sport or physical education, including services 
supplied by profit-making organisations — Not permissible 
(Council Directive 77/388, Arts 13A(1)(m), and 13B(b)) 
2. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of 
value added tax — Exemptions provided for by the Sixth Directive — Strict 
interpretation — Exemption for the letting of immovable property — Services related 
to the practice of sport — Included within exemption — Criteria — To be deter­
mined by the national courts 
(Council Directive 77/388, Art. 13) 
3. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of 
value added tax — Deduction of input tax — Individuals able to rely on provisions 
laying down the right to deduct read together with the provisions of Articles 2, 6(1) 
and 13B(b) of the Sixth Directive 
(Council Directive 77/388, Arts 2, 6(1), 13B(b), and 17(1) and (2)) 
4. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of 
value added tax — Exemptions provided for by the Sixth Directive — General 
exemption laid down by a Member State for the supply of premises and other facilities 
for the practice of sport and physical education — Sufficiently serious breach of 
Community law 
(Council Directive 77/388, Art. 13) 
1. Articles 13A(1)(m) and 13B(b) of the 
Sixth Directive 77/388 on the harmo­
nisation of the laws of the Member 
States relating to turnover taxes pre­
clude national legislation from provid­
ing for a general exemption from value 
added tax for the supply of premises 
and other facilities and the related 
supply of accessories or other arrange­
ments for the practice of sport or 
physical education, including services 
supplied by profit-making organisa­
tions. 
By way of exception to the principle 
laid down in Article 2 of the directive, 
under which every supply of services 
effected for consideration by a taxable 
person is subject to value added tax, 
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STOCKHOLM LINDÖPARK 
the exemption from tax for supplies of 
services linked to sport or physical 
educat ion laid down in Art i­
cle 13A(1)(m) of the Sixth Directive is 
specifically limited to supplies provided 
by non-profit-making organisations. It 
follows that, where such services are 
supplied by profit-making suppliers, 
they cannot fall within the scope of 
the exemption. Furthermore, although 
in certain circumstances a supply of 
premises for the practice of sport or 
physical education may constitute the 
letting of immovable property and thus 
fall within the scope of the exemption 
in Article 13B(b) of the Sixth Directive, 
providing for a general exemption for 
all services linked to the practice of 
sport or physical education without 
making any distinction, among those 
services, between those that constitute 
the letting of immovable property and 
other services introduces a new cate­
gory of exemption for which the Sixth 
Directive does not provide. 
(see paras 19, 22-23, and 
operative part 1) 
2. The terms used to specify the exemp­
tions provided for by Article 13 of the 
Sixth Directive 77/388 on the harmo­
nisation of the laws of the Member 
States relating to turnover taxes are to 
be interpreted strictly, since they con­
stitute exceptions to the general prin­
ciple that value added tax is to be 
levied on all services supplied for 
consideration by a taxable person. As 
regards the application of the exemp­
tion laid down in Article 13B(b) of the 
Sixth Directive for the leasing and 
letting of immovable property to the 
activity of running a golf course, ser­
vices linked to the practice of sport or 
physical education must, so far as is 
possible, be considered as a whole. 
Account should also be taken of the 
period of enjoyment of the immovable 
property, since that is an essential 
element of a lease. It is for the national 
court to determine, in the light of those 
factors, whether the activity concerned 
may be considered exempt from value 
added tax under Article 13B(b) of the 
Sixth Directive. 
(see paras 25-28) 
3. The provisions of Article 17(1) and (2) 
of the Sixth Directive 77/388 on the 
harmonisation of the laws of the 
Member States relating to turnover 
taxes, laying down the conditions giv­
ing rise to, and the scope of, the right to 
deduct, read together with those of 
Articles 2, 6(1) and 13B(b), are suffi­
ciently clear, precise and unconditional 
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SUMMARY — CASE C-150/99 
for an individual to rely on them as 
against a Member State before a 
national court. 
(see para. 33, and 
operative part 2) 
4. The implementation of a general 
exemption from value added tax for 
the supply of premises and other facil­
ities and for the related supply of 
accessories or other arrangements for 
the purposes of the practice of sport or 
physical education, where no such 
exemption is to be found in Article 13 
of the Sixth Directive 77/388 on the 
harmonisation of the laws of the 
Member States relating to turnover 
taxes, constitutes a serious breach of 
Community law that can render a 
Member State liable in damages. Given 
the clear wording of the directive, the 
Member State concerned was not in a 
position to make any legislative choices 
and had only a considerably reduced, 
or even no, discretion. 
(see paras 40, 42, and 
operative part 3) 
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