Luxembourg Introduces New VAT Group Regime - 9 August 2018
Luxembourg has adopted a new VAT grouping regime (article 11 of Directive 2006/112/EC refers). It replaces a previous regime which was restricted to entities only engaged in activities in the public interest. Luxembourg’s move aims to rectify 2017 rulings from the European Court of Justice (CJEU), which excluded financial and insurance companies from the scope of the public interest definition.
MEP Questions & Answers
The applicable VAT tariff for mind sport - 20 August 2018
The European Commission has replied to a question asked by the MEP Esther de Lange (EPP/NLD) with regard to VAT applicable to mind sport.
In her question, Ms. de Lange refers to a ruling by the Court of Justice of the EU (CJEU) which forbade activities such as duplicate bridge from being qualified as “sport”. The court apparently based its argument on the observation that sport requires some level of physical activity. She therefore asks the Commission whether it would establish a EU definition of sport and include mind sport into this definition, and whether bridge and all mind sport will no longer be applicable for a 0% VAT rate.
In his reply, Commissioner Navracsics (education, culture, youth and sport) states that the Commission usually refers to the definition of sport established by the Council of Europe, which includes the notion of physical activity.
Even though the CJEU ruling in question excludes the application of sport label to duplicate bridge, Member states may still use the concept of “cultural services” within the meaning of the VAT directive for it. He also maintains that the recently proposed VAT rates reform, once (and if) adopted, would grant Member states the possibility of applying a reduced or zero rate to tournament or club membership fees for duplicate bridge.
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