Opinion of the Advocate General — ECLI:EU:C:1998:231
Date: 1998-05-14
Language of the case: English
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, states that the 
[Institute] is a voluntary association of indi­
viduals comprising employees in the retail 
motor industry. The primary purposes of the 
[Institute and its members] are the improve­
ment of the standards of its members at work, 
the improvement of career structures within 
the different sectors of the industry and the 
consequent enhancement of the public per­
ception of the industry and the persons 
working within it. The [Institute] seeks to 
achieve these ends by responding to the 
requirements of the industry for skills at all 
levels, by validating courses (run by other 
institutions) that teach these skills, by making 
awards on completion of those courses and 
by grading its members, by disseminating 
information designed to keep its members 
up-to-date with developments in the industry 
and in their skills and by keeping a job place­
ment register.' 
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INSTITUTE OF THE MOTOR INDUSTRY v COMMISSIONERS OF CUSTOMS AND EXCISE 
V — Reply to the preliminary question 
31. The Institute and the Commission take 
the view that the expression 'organisations 
with aims of a ... trade-union ... nature' in 
Article 13A(1)(1) of the Sixth Directive covers 
the Institute, adding that the French language 
version is wider than the corresponding 
English one. 
32. Conversely, the United Kingdom Gov­
ernment takes the view that the term in ques­
tion means organisations which are not nec­
essarily trade unions but whose aims in relation 
to their members are of the same nature as 
those of a trade union to its members. Accord­
ingly, it concludes that the expression 'organi­
sations with aims of a trade-union nature' 
covers non-profit-making organisations which 
(a) work to defend the collective interests of 
their members (whether they be employees 
or self-employed persons) and (b) represent 
the interests of their members (depending on 
the case) vis-a-vis employers, government 
bodies and others. Accordingly, organisations 
such as the Institute do not fall within the 
scope of that expression. 13 
33. I should observe, then, that there are evi­
dently discrepancies in the different language 
versions of the term 'trade-union' used in the 
English text which has a specifically narrow 
meaning referring to workers' trade unions 
and not applying to bodies such as the Insti­
tute. 14 
34. Conversely, the French language version 
refers to 'organismes sans but lucratif pour­
suivant des objectifs de nature syndicale'. 
However, the French term 'syndical' has a 
wider meaning than the English term 'trade-
union'. In French it refers to matters relating 
to a professional organisation or association 
and those relating to a workers' trade union. 
The latter meaning corresponds to the English 
term 'trade-union'. Again, in French, 15 the 
term 'syndicat' means 'an organisation whose 
object is the defence of common interests', 
such as professional interests. 16 
35. Schematically, it may be said that the 
terms used in the different official languages 
of the Community in order to render the term 
13 — See for example Webster's Third New International Dictio­
nary of the English Language unabridged, 1981, under 
'trade-union'. 
14 — See for example Robert's Dictionnaire alphabétique et 
analogique de la langue française, sixth volume, 1972, under 
'syndicale'. 
15 — See Robert, op. cit., under 'syndicat'. 
16 — The fact that the French term 'syndicat' has a wide meaning 
is also borne out by the fact that it is also used in the expres­
sion 'syndicat d'initiative' — association for the develop­
ment of tourism. 
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OPINION OF MR COSMAS — CASE C-149/97 
in issue 'aims of a trade-union nature' are 
couched in either narrow or broad terms. 
36. The term 'aims of a trade-union nature' 
which principally means 'aims of a workers' 
union' is the narrow rendering. The corre­
sponding terms in the German (gewerk­
schaftliche), Danish (fagforeningsmæssig), 
Finnish (ammattijärjestöllisiä) and Greek 
() also reflect that 
narrow rendering. 
37. Conversely, the term 'objectifs de nature 
syndicale', which includes professional asso­
ciations which are not workers' unions, con­
stitutes the broad rendering. The corre­
sponding terms in Italian (sindacale), Dutch 
(syndikale), Spanish (sindical), and Portu­
guese (sindical) have the same meaning. 
38. Where there are such linguistic discrep­
ancies, the English version must be inter­
preted in the light of the other language ver­
sions, 17 in order to discover the meaning 
common to all the language versions. 
39. The question of linguistic discrepancies in 
the rendering of terms or expressions in leg­
islative texts of the Community institutions 
has already exercised the Court which, for 
example, in the Stauder case, 18 held that: 
'When a single decision is addressed to all the 
Member States the necessity for uniform appli­
cation and accordingly for uniform interpre­
tation makes it impossible to consider one 
version of the text in isolation but requires 
that it be interpreted on the basis of both the 
real intention of its author and the aim he 
seeks to achieve, and in the light in particular 
of the versions in all four languages.' 19 The 
Court went on to emphasise that: 'It cannot, 
moreover, be accepted that the authors of the 
decision intended to impose stricter obliga­
tions in some Member States than in oth­
ers.' 20 
40. Thus, in resolving this problem, the 
Court 's case-law can be of assistance. In 
Cricket St. Thomas, the Court held 21 that the 
formulation in one of the Community's lan­
guages (in that case English) 'cannot serve as 
the sole basis for the interpretation of that 
provision, or be made to override the other 
language versions in this regard. Such an 
approach would be incompatible with the 
requirement for the uniform application of 
Community law.' The Court went on to 
emphasise that 'in the case of divergence 
between the language versions the provision 
17 — For the solution by the Court of such a problem see Case 
295/81 IFF v Hauptzollamt Bad Reichenball [1982] ECR 
3239, paragraphs 8 and 9. 
18 — Case 26/69 Stauder v Ulm [1969] ECR 419. 
19 — Stauder judgment (paragraph 3). See also Case 19/67 Sociale 
Verzekeringsbank v Van der Vecht [1967] ECR 345. 
20 — Stauder (paragraph 4). 
21 — Case C-372/88 Cricket St. Thomas [1990] ECR I-1345, para­
graph 18. 
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INSTITUTE OF THE MOTOR INDUSTRY v COMMISSIONERS OF CUSTOMS A N D EXCISE 
in question must be interpreted by reference 
to the purpose and general scheme of the rules 
of which it forms a part'. 22 
41. Thus, it is necessary in the present case to 
determine the aim pursued by the Commu­
nity legislature by means of the provision at 
issue so that it may be possible by way of a 
teleological interpretation to arrive at conclu­
sions concerning the meaning of the term 
under examination. 
42. At the outset I would observe that the 
purpose of the Sixth VAT Directive is the 
harmonisation of the laws of the Member 
States relating to turnover taxes by means of 
the creation of a common system of value 
added tax and a uniform basis of assessment. 
It was also stated (11th recital) that 'a common 
list of exemptions should be drawn up so that 
the Communities' own resources may be col­
lected in a uniform manner in all the Member 
States'. It follows from that recital, as more­
over the Court has repeatedly emphasised, 23 
that 'the exemptions constitute independent 
concepts of Community law which ... should 
be placed in the general context of the common 
system of VAT introduced by the Sixth Direc­
tive'. 
43. Moreover, I would observe that the basic 
guiding principle to be inferred from the pur­
pose and general economy of the provisions 
of the directive is the subjection to VAT, as a 
matter of principle, of every supply of goods 
or services effected for valuable consideration 
(see Article 2). Thus, the Sixth Directive con­
fers on VAT a wide scope of application. 24 
44. The Sixth Directive also provides for 
exemption from VAT, by way of exception, 
of certain limitatively enumerated activities 
of general interest, that is to say activities 
enumerated therein (Article 13). Conse­
quently, where a general principle is dero­
gated from, the exemption must be strictly 
interpreted because, as the Court has, more­
over, held, 25 M any interpretation which would 
widen the scope of Article 13(A) would be 
inconsistent with the aim of the provision. 
22 — Case 100/84 Commission v United Kingdom [1985] ECR 
1169, paragraph 17, Case C-100/90 Commission v Denmark 
[1991] ECR I-5089, paragraph 8, and Case C-449/93 Rockfon 
[1995] ECR I-4291, paragraph 28. On that subject, ¡n rela­
tion to references for a preliminary ruling, see Case 30/77 
Bouchereau [1977] ECR 617, paragraph 14, Case 173/88 
Henriksen [1989] ECR 2763, paragraph 11, Opinion in that 
case of Advocate General Jacobs (paragraph 12 et seq.), and 
judgment in Cricket St. Toomas, cited above (paragraph 18) 
and Opinion in that case of Advocate General Tesauro 
(paragraph 6 et seq.). 
23 — See Case C-453/93 Bulthuis-Griffioen [1995] ECR I-2341, 
paragraph 18, and Case 348/87 Stichting Uitvoering Finan­
ciële Acties v Staatssecretaris van Financiën [1989] ECR 1737, 
paragraph 11. 
24 — Casc 235/85 Commission v Netherlands [1987] ECR 1471, 
paragraphs 7 to 10, Stichting Uitvoering Financiële Acties 
(paragraphs 10 and 13) and Bulthuis-Griffioen (paragraph 
19). 
25 — See Stichting Uitvoering Financiële Acties, cited above at 
footnote 23 (paragraphs 13 and 14) and Bulthuis-Griffioen 
(paragraph 19). 
I - 7065 
OPINION OF MR COSMAS — CASE C-149/97 
Moreover, the Court has clarified 26 that 'Arti­
cle 13 of the Sixth Directive does not provide 
exemption for every activity performed in the 
public interest, but only for those which are 
listed and described in great detail'. The Court 
has therefore declined to apply an extensive 
interpretation of the exemptions permitted 
under the Directive where there are no inter­
pretative elements to allow extension of the 
exemption permitted under the relevant pro­
visions and in particular Article 13. 27 
45. Accordingly, a systematic interpretation 
of the provisions of the Sixth Directive guides 
us to a construction of the term before the 
Court which is consistent with the Direc­
tive's guiding principle. 
46. We come therefore to the issue, under 
Community law, of the definition of aims of 
a trade-union nature for the purposes of the 
Sixth Directive, that is to say, what those aims 
comprise. 
47. I do not consider that any carrying on of 
an activity or pursuit of an aim which may 
happen to interest or concern a trade union, 
or a trade-union or professional organisation, 
can constitute aims of a trade-union nature. 
Nor, moreover, can the exercise of any activity 
on the part of its members suffice for an 
organisation to be said to constitute a body 
pursuing aims of a trade-union nature and, 
consequently, for it to come within the terms 
of the expression Organisation with aims of 
a ... trade-union ... nature', in such a way as 
to be covered rattorte personae by the exemp­
tion from VAT provided for in Article 
13A(1)(1). 
48. Accordingly, the better interpretation, in 
my view, of the relevant expression in Article 
13 is that it refers to the substantive aims of 
trade-union activity and accordingly covers 
those non-profit-making organisations which, 
irrespective of their legal form, pursue such 
aims. 
49. The fact that Article 13 A(1)(1) lists a whole 
series of adjectives describing the types of 
aims which those bodies may pursue (politi­
cal, trade-union, religious, patriotic, philo­
sophical, philanthropic or civic) does not, in 
my view, mean that the Community legisla­
ture intended in that way to include all organi­
sations set up in the interests of their mem­
bers provided that they were non-profit-
making and not likely to distort competition, 
as the Commission maintains. Rather it sought 
26 — See Case 107/84 Commission v Germany [1985] ECR 2655, 
paragraph 17 and the Stichting judgment cited above at foot­
note 23 (paragraph 12). 
27 — See Commission v Germany, already referred to (paragraph 
20), and paragraph 16 of the Opinion of Advocate General 
Darmon in Case C-63/92 Lubbock Fine v Commissioners of 
Customs & Excise [1993] ECR I-6665, in which the Court 
gave judgment on 15 December 1993. 
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INSTITUTE OF THE MOTOR INDUSTRY v COMMISSIONERS OF CUSTOMS A N D EXCISE 
to determine which organisations of a non­
profit making nature and not likely to distort 
competition qualify for exemption from VAT. 
50. In order to identify the demarcation line 
in law as between aims of a trade-union nature 
and those of a non-trade-union nature, for 
the purposes of the Sixth Directive, I believe 
that the Court's case-law can be of assistance. 
In ASTI 28 which concerned a Community 
provision which was not subject to a narrow 
interpretation, 29 unlike Article 13 in this case, 
the Court held 30 that the provision in ques­
tion 'constitutes a particular expression of the 
principle of non-discrimination in the specific 
field of workers' participation in trade-union 
organisations and activities' and that its appli­
cability 'cannot be limited on the basis of 
considerations relating to the legal form of 
the body in question'. The Court further held 
that the bodies at issue in that case 31 did not 
include merely bodies which were 'not ... in 
law, trade-union organisations', but also those 
which 'perform similar functions as regards 
the defence and representation of workers' 
interests'. 32 
51. The decision in ASTI may therefore pro­
vide two elements relevant to the issue now 
before the Court which enables us to apply 
an operational criteria in approaching the term 
'trade union' under Community law. Thus, 
the epithet 'trade-union' is proper to an organi­
sation which, irrespective of its legal form, 
has as its aim the defence (safeguarding and 
promoting) of the interests of its members 
(whether workers, employers of the liberal 
professions or also generally persons carrying 
on any economic activity) and their represen­
tation. 33 Consequently, it is not sufficient for 
a non-profit-making organisation simply to 
promote the interests of its members where 
that does not go hand in hand with the 
28 — Case C-213/90 ASTI [1991] ECR I-3507, paragraphs 13 to 
17. See also paragraph 16 et seq. of the Opinion of Advocate 
General Jacobs in that case. 
29 — The provision before the Court in that case was the first 
subparagraph of Article 8(1) of Regulation (EEC) N o 1612/68 
on freedom of movement for workers within the Commu­
nity (OJ, English Special Edition 1968 (II), p. 475), pursuant 
to which 'A worker who is a national of a Member State and 
who is employed in the territory of another Member State 
shall enjoy equality of treatment as regards membership of 
trade unions and the exercise of rights attaching thereto, 
including the right to vote and to be eligible for the admin­
istration or management posts of a trade union; he may be 
excluded from taking part in the management of bodies gov­
erned by public law and from holding an office governed by 
public law. Furthermore, he shall have the right of eligibility 
for workers' representative bodies in the undertaking.' 
30 — ASTI (paragraph 15). 
31 — The Chambre des Employés Privés of the Grand Duchy of 
Luxembourg, a professional association under Luxembourg 
law. 
32 — ASTI judgment (paragraph 16). See also paragraph 19 of the 
Opinion of Advocate General Jacobs in that case. That 
notion of the defence and furtherance of members' interests 
by a professional association which goes hand in hand with 
the recognition of trade-union freedom (provided for, for 
example, in Article 24(a) of the Staff Regulations for officials 
of the European Communities) may be found in the judg­
ments in Case 175/73 Union Syndicale —Service Public 
Européen — Massa and Kortner v Council [1974] ECR 423, 
paragraph 14, Case 18/74 Syndicat Général du Personnel des 
Organismes Européen v Commission [1974] ECR 425, para­
graph 10, Case 72/74 Union Syndicale —Service Public 
Européen and Others v Council [1975] ECR 141, paragraphs 
17 and 19, and Joined Cases C-193/87 and C-194/87 M au­
listen and Union Syndicale v Court of Auditors [1990] ECR 
I-95, paragraph 13). 
33 — 1 would point out that International Convention N o 87 of 
1948 'concerning Freedom of Association and protection of 
the Right to Organise' delimits the scope of workers' and 
employers' organisations in general terms (Article 10): fur­
therance and defence of their interests (for the text of that 
international convention see International Labour Conven­
tions and Recommendations, International Labour Office, 
Geneva, 1992, Volume I (1919-1962), p. 435. 
I - 7067 
O P I N I O N OF MR COSMAS — CASE C-149/97 
defence of those interests and representation 
of its members in regard to decision-makers 
affecting it. 34 
52. Consequently, the question to be deter­
mined is whether, as a consequence of that 
legal classification, a distinction is drawn in 
national legislation between the charging to 
VAT or exemption therefrom of supplies of 
goods and services to their members to the 
detriment of those organisations which, even 
though they pursue trade-union aims within 
the meaning of the Sixth Directive, are none 
the less required to pay the corresponding 
VAT. 
53. Conversely, if that condition of pursuit of 
trade-union aims is not met, there can be no 
question of an infringement of the principle 
of equal treatment in the sense of unequal 
treatment of equivalent economic activities, as 
the Institute maintains, according to which 
there are no differences as to the nature and 
operation of the economic activities in ques­
tion when they are carried on by organisa­
tions which pursue trade-union aims and 
when they are carried on by organisations 
not having those aims, even if they are non­
profit making and there is no risk of a distor­
tion to competition. For in such a case there 
would be different treatment of different situ­
ations and that is not precluded by Commu­
nity law. 
54. Moreover, I believe that the written answer 
by the Commission 35 to the European Par­
liament (No 831/82) on the subject of exemp­
tion from VAT for organisations of a trade-
union nature 36 goes in the same direction as 
my definition of the expression 'organisations 
with aims of a trade-union nature'. That reply 
is as follows: 
'The Commission is indeed aware of the lin­
guistic discrepancies in the wording of Article 
13(A)(1)(l) of the Sixth Directive. Terms such 
as "syndical" and "sindacale", which cover a 
variety of meanings, are used in some lan-
34 — See Jean-Maurice Verdier, Syndicats et Droit Syndical Vol. 
1, part 5 (Liberté-Structurcs-Actions), Paris, Dalloz, 2nd 
Ed., 1987, paragraph 58, p. 202 et seq. Under French law the 
mission of trade unions is the study and defence of the 
rights and substantive and moral interests, both collective 
and individual, of persons referred to in their statutes (Article 
L.411-1 of the Code du travail — labour code). In Greece, 
Arude 23(1) of the Constitution provides that the purpose 
of trade-union organisations is to safeguard and promote the 
financial and working interests of workers, whilst Law 
1264/1982 adds to those aims the promotion of the security, 
social and trade-union interests of workers (see Georgios 
Levendis 
(Collective employment law), Athens, Deltio 
Ergarikis Nomothesias, 1996, para. 12, p. 122 et seq. More­
over, the trade-union organisations carry out their mission 
in various ways, as is borne out by the practice followed in 
the Member States. See in that connection Gerard Lyon-
Caen, Jean Pelissier and Alian Supiot, Droit du travail, Paris, 
Precis, Dalloz, 18th Ed., 1996, p. 482 et seq. 
35 — OJ 1983 C 25, p. 1. 
36 — That reply was repeated by the Commission through the 
intermediary of the competent Commissioner in 1984 in a 
written answer (532/84) to the European Parliament (OJ 
1984 C 308, p. 3). 
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INSTITUTE OF THE MOTOR INDUSTRY y COMMISSIONERS OF CUSTOMS AND EXCISE 
guage versions while the terms used in others 
are very specific (e. g. "trade-union" and 
"gewerkschaftlich"). 
The Commission feels that these discrepan­
cies should not, in practice, affect non-profit-
making organisations (whether trade, 
employers' or employees' organisations) 
whose activity is confined to representing the 
collective interests of their members. In such 
cases, these organisations act as the collective 
emanation of their members whose subscrip­
tions are then a tangible manifestation of their 
membership of a collective organisation and 
do not represent a consideration for services 
rendered. Such organisations should therefore 
be outside the scope of VAT. 
Organisations of the kind referred to above 
whose activity is not confined to representing 
the collective interests of their members are 
liable to fall within the scope of the tax where 
the subscriptions charged by them do, in fact, 
represent a consideration for individual ser­
vices supplied to members' (emphasis added). 
55. Moreover, in my view, where a body acts, 
in accordance with its objects clause, as a lob­
bying or pressure group on decision-makers 
concerning, in the widest possible sense, the 
sector of activity which it represents, that 
body cannot be deemed to be excluded from 
the category of bodies having aims of a trade-
union nature within the meaning of the Sixth 
Directive. Accordingly, it may be eligible for 
exemption from VAT under Article 13(A)(1 )(l) 
of the Sixth Directive, where the two criteria 
mentioned in that provision are satisfied: (a) 
it is a non-profit-making organisation and (b) 
exemption in respect of its activities does not 
create the risk of a distortion of competition. 
Thus I consider that it is not sufficient for 
such an organisation and, more generally, any 
non-profit-making professional organisation 
to be active in providing goods and services 
in the common interest of its members, but 
rather it must have as its object the further­
ance and defence of the interests of its mem­
bers and their representation, as stated above. 
56. In each case it is thus a question of fact 
for the national court to determine whether a 
non-profit-making organisation has as its 
object the defence of the interests and repre­
sentation of its members in order for it to be 
deemed to be pursuing aims of a trade-union 
nature within the meaning of Article 
13(A)(1)(l) of the Sixth Directive. 
57. In the present case, if we examine the 
aims pursued by the Institute and the means 
used to attain them, as stated in the order for 
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OPINION OF MR COSMAS — CASE C-149/97 
reference, 37 we see that it seeks to improve 
the professional standard of its members and 
to improve career structures in the different 
sectors of the industry, and consequently to 
enhance public perception of the industry and 
the people working in it. To that end the 
Institute consciously responds to the indus­
try's requirements for skills for specific per­
sonnel (from senior management level to tech­
nical levels), validates courses (organised by 
other institutions) for the teaching of specific 
skills, makes awards to persons completing 
those courses, grades its members, dissemi­
nates information designed to keep its mem­
bers up to date with developments in the 
industry, and keeps a job placement register. 
58. Since, as we have seen, the term 'trade 
union' in Community law is proper to an 
organisation which, irrespective of its legal 
form, has as its aim the furtherance and 
defence of the interests of its members 
(whether workers, employers or the liberal 
professions) and their representation, it is dif­
ficult to accept that the Institute can be 
included amongst the bodies with aims of a 
trade-union nature. I would point out that 
the United Kingdom Government emphasises 
in its written observations (paragraph 19), and 
repeated at the hearing in reply to a question 
in that connection from the Court, that the 
Institute has never suggested that any of its 
members have ever turned to it for the defence 
and representation of their interests vis-a-vis 
employers or anyone else, and that the mem­
bers of the Institute would, if necessary, turn 
to the trade unions of which they are mem­
bers for that purpose. 
59. Accordingly, if it were accepted that a 
non-profit making body, such as the Insti­
tute, constitutes an Organisation with aims of 
a trade-union nature', that would be to extend 
the exemptions from VAT to cases not pro­
vided for by the terms of Article 13(A)(1)(1) 
of the Sixth Directive, which are to be strictly 
construed. Nor do I believe that it is possible 
to construe the exemption more extensively 
than is provided for in the relevant article. 38 
60. Furthermore, if that were to be accepted 
and the phrase in question were to be con­
strued so widely, that would be likely to open 
the way to the overturning of the provisions 
of the Directive since it would offer such 
organisations a plausible way of gaining 
exemption from their obligations to pay VAT 
to the detriment of Community finances. 
37 — I would point out that the national court held that the Insti­
tute does not constitute a 'trade union or other organisation 
of persons having as its main object the negotiation on behalf 
of its members of the terms and conditions of their employ­
ment', as required by VATA. 
38 — See Commission v Germany, already cited above at footnote 
27 (paragraph 20) and paragraph 16 of the Opinion by 
Advocate General Darmon in Case C-63/92 Lubbock Fine 
v Commissioners of Customs & Excise, also cited above in 
footnote 27. 
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INSTITUTE OF THE MOTOR INDUSTRY v COMMISSIONERS OF CUSTOMS AND EXCISE 
61. In my view, a professional association 
such as the Institute cannot be regarded as 
pursuing aims of a trade-union nature within 
the meaning of the Directive because the 
result of unreasonably stretching the limits of 
that concept would be to water it down. Thus, 
organisations such as that described by the 
national court cannot be subsumed under the 
concept of 'organisations with aims of a trade-
union nature' because to do so would be to 
alter the content of that vague legal concept 
with the result that it would end up being a 
concept having nominal value only and being 
without any binding legal effect and, in the 
final analysis, without any specific practical 
usefulness. 
62. Finally, an argument in support of the 
view here advocated may also be drawn from 
the preparatory document which led to the 
adoption of the provision of Article 13 under 
examination, which allows us to discern the 
intention of the legislature. I would observe 
that, in the Economic and Social Committee's 
opinion of 31 January 1974 on the draft Sixth 
VAT Directive, 39 reference was made for the 
first time to 'the exemption of trade unions, 
professional organisations, churches etc.' 
(emphasis added). Thus, that opinion specifi­
cally mentioned trade unions, professional 
organisations, churches and stated that the 
same rules should govern other equivalent 
institutions, which it did not lay down, in so 
far as their activities are not governed by 
public law and they are not already exempted 
from VAT on that ground. 
63. It was the Economic and Social Commit­
tee's view that exemption from VAT would 
be possible to the extent to which trade unions 
and professional organisations did not engage 
in competitive operations, such as commer­
cial transactions or the giving of advice 
involving payments separate from the general 
contributions and varying according to the 
extent of the services rendered. In the same 
opinion we see that such exemption was 
deemed to be particularly appropriate as 
regards trade-union contributions since oth­
erwise trade unions' income from contribu­
tions would be reduced by the amount of the 
tax without the members being able to deduct 
this tax, as they themselves are not taxable 
persons. 40 
64. In light of that opinion by the Economic 
and Social Committee, I would observe that 
the text of Article 13(A)(1)(l) determines which 
bodies are to be exempted, simply mentioning 
bodies pursuing aims of a trade-union nature 
and making no mention of professional aims 
in general. Thus that provision, as it applies, 
is narrowly drawn. For that reason I am led 
to the conclusion that only bodies pursuing 
aims of a trade-union nature, in the manner 
described above, can qualify for VAT exemp­
tion. 
39 — OJ 1974 C 139, p. 15, paragraph 1 of the observations relating 
to Article 14 of the draft directive containing the list of 
exemptions from VAT. 
40 — The Economic and Social Committee went on to observe 
that trade unions and professional organisations ought to be 
able to renounce exemption by opting for VAT in order to 
recover VAT already paid (taxes on immoveables and office 
equipment). 
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OPINION OF MR COSMAS — CASE C-149/97 
VI — Conclusion 
65. In light of the foregoing analysis I propose that the Court should give the fol­
lowing reply to the question referred to it by the VAT and Duties Tribunal, London: 
Article 13(A)(1)(l) of Council Directive 77/388/EEC of 17 May 1977 on the har­
monisation of the laws of the Member States relating to turnover taxes — Common 
system of value added tax: uniform basis of assessment, must be construed as 
meaning that an organisation with the characteristics described in the order for 
reference cannot be deemed to be 'pursuing aims of a trade-union nature' and, 
accordingly, the services which it supplies to its members are not exempt from VAT. 
I - 7072