EU Court Strikes Down Belgian Denial of Group VAT Exemptions

A Belgian-based software company won a 19-year battle to get a value-added tax exemption for services it provided to a group of hospitals.

The European Court of Justice said in a Nov. 20 decision that EU member states can’t give a blanket VAT exemption denial to companies that “also provide services to non-members.’'

Based on the EU VAT law, a company providing services to a group of companies involved in general interest or social services is exempt from imposing VAT. The VAT is charged on services provided to non-members, not members of the group.

The Infohos decision is the latest ...