Advocate General’s conclusions – Limitation of the application of Article 261 B of the French Tax Code to specific sectors of activity

This new case concerning the VAT exemption benefiting to certain groups providing services to their members deals with the German regulations which limit the benefit of the VAT exemption provided by Article 132, 1, f of the VAT Directive to autonomous groups of persons working in the health sector.

According to the Advocate General, Mr. Wathelet, first, the text of the Directive does not limit the scope of the exemption on the ground of the group members’ activity and, second, the existence of a competitive distortion, which can jeopardize the application of the regime, must necessarily be assessed in concreto.

His conclusions conflict with those of the Advocate General Ms. Kokott in the cases DNB Banka (C-326/15), Aviva (C-605/15) and Commission v/ Luxemburg (C-274/15) where she pointed out that the VAT exemption could not benefit to the financial and insurance sectors because these are not general interest activities (cf. ITN n °118, March 2017).

Michel Guichard

Michel Guichard, Partner, leads the Indirect Tax activity. With more than 30 years’ experience in International and French Tax law, he advises his clients on indirect tax matters. Michel is […]

Odile Courjon

Odile Courjon, Partner, has developed a strong expertise in indirect tax issues (VAT, wage taxes, excise taxes, export control and customs) in France and overseas. She advises her clients in […]

Bertrand Jeannin

Bertrand Jeannin, Partner, supplies strategic and technical advice to French and foreign multinational groups in all aspects of their VAT and customs policies. Major focuses of Bertrand’s input involve the […]

William Stemmer

William Stemmer, Partner, has more than 15 years’ experience in Indirect Tax matters. William particularly specializes in the real estate and financial sectors. William is a lecturer at the University […]

Anne Gerometta

Anne, Director, has been advising companies on indirect tax issues for more than 15 years. Anne has developed a specific expertise on the manufacturing sector (VAT, customs and Export Control) […]