Finanzamt D (Judgment) French Text [2020] EUECJ C-657/19 (08 October 2020)

Finanzamt D (Judgment) French Text [2020] EUECJ C-657/19 (08 October 2020)

The establishment of dependency assessment reports by an independent expert for the medical service of a long-term care insurance fund constitutes a service closely linked to social welfare if indispensable for the implementation of such operations. However, Article 132(1)(g) of Directive 2006/112/EC does not require that such an expert, acting as a subcontractor and not directly contracted by the social insurance fund, be recognized as an organization of a social character for VAT exemption purposes, where national law does not provide for such recognition and the state has not exceeded its discretion under EU law.

Citation
[2020] EUECJ C-657/19
Parties
Applicant: Finanzamt D; Respondent: E
Jurisdiction
European Union
Judgment Date
08 October 2020
Procedural Posture
Preliminary Reference (renvoi Préjudiciel) / Judgment on Reference From Bundesfinanzhof (germany)
Outcome
Reference answered; VAT exemption applies to indispensable assessment services but not to subcontractors lacking direct recognition as social organizations under national law.
Legal Topics
Value Added Tax (vat) Exemption, Interpretation of Directive 2006/112/ec Article 132(1)(g), Recognition of Social Character for VAT Purposes
European Union Law Tax Law Value Added Tax (vat) Exemption Interpretation of Directive 2006/112/ec Article 132(1)(g) Recognition of Social Character for VAT Purposes

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Parties

Finanzamt D

Applicant

E

Respondent

Procedural Posture

Preliminary Reference (renvoi Préjudiciel) / Judgment on Reference From Bundesfinanzhof (germany)

Legal Issues

  1. 1 Whether the establishment of dependency assessment reports by an independent expert for a medical service of a long-term care insurance fund constitutes a service closely linked to social welfare under Article 132(1)(g) of Directive 2006/112/EC.
  2. 2 Whether such an expert can be recognized as an organization of a social character for VAT exemption purposes when acting as a subcontractor and not directly contracted by the social insurance fund.

Ratio Decidendi

The establishment of dependency assessment reports by an independent expert for the medical service of a long-term care insurance fund constitutes a service closely linked to social welfare if indispensable for the implementation of such operations. However, Article 132(1)(g) of Directive 2006/112/EC does not require that such an expert, acting as a subcontractor and not directly contracted by the social insurance fund, be recognized as an organization of a social character for VAT exemption purposes, where national law does not provide for such recognition and the state has not exceeded its discretion under EU law.

Court Disposition

Reference answered; VAT exemption applies to indispensable assessment services but not to subcontractors lacking direct recognition as social organizations under national law.

Orders

  • Article 132(1)(g) of Directive 2006/112/EC covers indispensable dependency assessment services for social insurance funds.
  • The provision does not preclude refusal of social character recognition to subcontractors not directly contracted or recognized under national law.