Opinion of the Advocate General — ECLI:EU:C:2001:694
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: Netherlands

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 
certain services closely linked to sport or physical education supplied by non-profit-
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SUMMARY — CASE C-174/00 
making organisations to persons taking part in those activities — Non-profit-making 
organisations — Definition — Optional condition providing for a prohibition on 
systematically aiming to make a profit — Scope 
(Council Directive 77/388, Art. 13A(1)(m) and (2)(a), first indent) 
2. Tax provisions — Harmonisation of laws —· Turnover taxes — Common system of 
value added tax — Supply of services for consideration — Definition — Sports 
facilities made available for a fixed annual subscription fee — Included 
(Council Directive 77/388, Art. 2(1)) 
1. Article 13A(1)(m) of the Sixth Direc­
tive 77/388 on the harmonisation of 
the laws of the Member States relating 
to turnover taxes is to be interpreted as 
meaning that the categorisation of an 
organisation as 'non-profit-making' 
must be based on all the organisation's 
activities, including those which it 
provides by way of extension to the 
services covered by that provision. 
That categorisation may be made even 
if the organisation systematically seeks 
to achieve surpluses, as long as those 
profits are not distributed as profits to 
its members but are used for the 
purposes of the provision of its ser­
vices. The first part of the optional 
condition set out in the first indent of 
Article 13A(2)(a) of Directive 77/388, 
which provides that the organisations 
in question must not systematically aim 
to make a profit, is to be interpreted in 
the same way. 
(see paras 21-22, 28, 35, 
operative part 1-2) 
2. Article 2(1) of the Sixth Directive 
77/388 on the harmonisation of the 
laws of the Member States relating to 
turnover taxes, under which the supply 
of goods or services effected 'for con­
sideration' is subject to value added 
tax, is to be interpreted as meaning that 
the annual subscription fees of the 
members of a sports association can 
constitute the consideration for the 
services provided by the association, 
even though members who do not use 
or do not regularly use the association's 
facilities must still pay their annual 
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KENNEMER GOLF 
subscription fees. There is a direct link 
between the subscription fees paid by 
members and the services which the 
association provides where those ser­
vices are constituted by the making 
available to its members, on a perma­
nent basis, of sports facilities and the 
associated advantages and not by par­
ticular services provided at the mem­
bers' request. 
(see paras 40, 42, operative part 3) 
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