Case C-87/23, Latvijas Informācijas un komunikācijas tehnoloģijas asociācija: Judgment of the Court (Seventh Chamber) of 4 July 2024 (request for a preliminary ruling from the Administratīvā apgabaltiesa – Latvia) – Biedrība Latvijas Informācijas un komunikācijas tehnoloģijas asociācija v Valsts ieņēmumu dienests (Reference for a preliminary ruling – Taxation – Value added tax (VAT) – Directive 2006/112/EC – Article 2(1)(c) – Supply of services for consideration – Article 9(1) – Concepts of taxable person and economic activity – Non-profit association carrying out projects financed by the European Regional Development Fund (ERDF) – Supply of training services through subcontractors – Inclusion of the amount of the subsidy in the taxable amount – Article 73)
Date: 2024-07-04
Institutions: Court of Justice
Subjects: European Regional Development Fund, VAT, basis of tax assessment, economic activity, financial aid, non-profit organisation, provision of services, subcontracting, taxpayer, vocational training








C_202404935EN.000101.fmx.xml












Official Journal of the European Union


EN
C series













C/2024/4935


19.8.2024






Judgment of the Court (Seventh Chamber) of 4 July 2024 (request for a preliminary ruling from the Administratīvā apgabaltiesa – Latvia) – Biedrība ‘Latvijas Informācijas un komunikācijas tehnoloģijas asociācija’ v Valsts ieņēmumu dienests


(Case C-87/23,
                (1)
Latvijas Informācijas un komunikācijas tehnoloģijas asociācija)

(Reference for a preliminary ruling - Taxation - Value added tax (VAT) - Directive 2006/112/EC - Article 2(1)(c) - Supply of services for consideration - Article 9(1) - Concepts of ‘taxable person’ and ‘economic activity’ - Non-profit association carrying out projects financed by the European Regional Development Fund (ERDF) - Supply of training services through subcontractors - Inclusion of the amount of the subsidy in the taxable amount - Article 73)
(C/2024/4935)
Language of the case: Latvian

Referring court

Administratīvā apgabaltiesa

Parties to the main proceedings


Applicant: Biedrība ‘Latvijas Informācijas un komunikācijas tehnoloģijas asociācija’
         

Defendant: Valsts ieņēmumu dienests

Operative part of the judgment







1.


Article 2(1)(c) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax
must be interpreted as meaning that the supply of training services invoiced by a non-profit association, which supply has been subcontracted for the most part to third parties and received subsidies from European funds of up to 70 % of the total amount of those services, constitutes a supply of services for consideration, without Article 28 of that directive being applicable, in the absence of an express agency agreement capable of establishing the existence of a supply of services by a taxable person in its own name and on behalf of another person.










2.


Article 73 of Directive 2006/112
must be interpreted as meaning that subsidies paid to a service provider by a European fund for a specific supply of services are, in accordance with that provision, included in the taxable amount as a payment obtained from a third party.










3.


Article 9(1) of Directive 2006/112
must be interpreted as meaning that the status of non-profit association enjoyed by an association does not preclude, following an analysis which takes account of all the circumstances of the association’s activity and, in particular, the fact that that activity is comparable to the typical conduct of an economic operator in the same sector, that association from being regarded as a taxable person carrying out an economic activity within the meaning of that provision.






(1)  
            OJ C 173, 15.5.2023.


ELI: http://data.europa.eu/eli/C/2024/4935/oj
ISSN 1977-091X (electronic edition)