CJEU - Recent Developments in Value Added Tax 2018

1. S. 132Case Law on Taxable Persons (Art. 9-13 of the VAT Directive)

In 2018, the CJEU only dealt with the personal scope of the VAT Directive (Arts. 9-13 of the VAT Directive) in a small number of cases. In this paper two of these cases are discussed: The Ryanair case deals with the interpretation of Art. 9 in connection with Art. 169 of the VAT Directive on the right to input VAT deduction in a scenario of abortive investments of a holding company. The Nagyszénás Településszolgáltatási Nonprofit Kft (NTN) case deals with the special rules for public bodies in Art. 13 of the VAT Directive in a scenario where activities of public interest are outsourced to a legal entity established under private law which is wholly-owned by a regional body.

2. Ryanair Ltd, C-249/17

2.1. Legal basis

According to Art. 9 of the VAT Directive any person who, independently, carries out in any place any economic activity, whatever the purpose or results of that activity is a taxable person. Art. 9 third sentence of the VAT Directive clarifies that the exploitation of tangible or intangible property for the purposes of obtaining income therefrom on a continuing basis shall in particular be regarded as an economic...