CJEU – Recent Developments in Value Added Tax 2016

S. 267Exemptions in VAT Law – Recent Case Law of the CJEU

Andrea Parolini/Andrea Rottoli

1. S. 268Introduction

This section analyses a number of recent decisions of the Court of Justice of the European Union (hereinafter, CJEU) addressing exemptions in the VAT field. The topic of exemptions still represents one of the most controversial as it affects fundamental rights of the common system of VAT, such as the right of deduction, and consequently, the neutrality of the tax.

As far as exemptions in the financial sector are concerned, it is worth noting that the decisions in the Bookit case and in the National Exhibition Centre case have been issued without an Advocate General’s opinion. It is likely that this was considered appropriate because the cases did not raise significant new issues. The authors partly agree with that approach since it cannot be denied that the judgments are important for a clear and full comprehension of the case from both a legal and factual basis in the field of VAT exemptions.

The exemption related to immovable property will not be dealt with under this section since no cases have been heard by the CJEU on taxation of land and buildings.

The case dealing with the exemption ...