This article was first published in our monthly newsletter Indirect Tax News. This newsletter sums up the main news in indirect tax and customs.
The CJEU ruled that activities carried out in circumstances such as those at issue in the main proceedings, consisting in stu-dents of a higher education establishment supplying, for consideration and as part of their education, restaurant and entertainment services to third parties, may be regarded as supplies ‘closely related’ to the principal supply of education and accordingly be exempt from Value Added Tax (VAT), provided that those services are essential to the students’ education and that their basic purpose is not to obtain additional income for that establishment by carrying out transactions which are in direct competition with those of commercial enterprises liable for VAT, which it is for the national court to determine.