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).

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. He regularly assists his clients in the […]

William Stemmer

William Stemmer, Partner, has more than 20 years’ experience in Indirect Tax matters. William particularly specializes in the real estate sector. William carries out many training courses on VAT aspects […]

Nicolas Kazandjian

Barrister registered with the Hauts-de-Seine Bar, he started my career in the indirect tax service line of Deloitte Société d’Avocats in 1999. My current position is Director. My area of […]

Vanessa Irigoyen

With more than 16 years of experience, Vanessa has extensive expertise in the implementation of international efficiency business models for customs, export control and indirect tax purposes. Her functions notably […]

Anne Gerometta

Anne Gerometta is Indirect Tax Partner of Deloitte Société d’Avocats. She advises international groups on their indirect tax issues. Anne notably assists operators from the Financial Sector – bank, insurance […]

Delphine Nicault

Delphine Nicault is an Attorney-at-Law at the French Bar. She joined Deloitte in 2002 and assists her clients on day-to-day VAT issues. She developed an expertise in the VAT and […]