European Union Gazettes ECJ Preliminary Ruling on Spanish VAT Exemption Rules for Cost-Sharing Group Services

The European Union Official Gazette March 16 published the European Court of Justice (ECJ) preliminary ruling for Joined Case Nos. C-379/24 and C-380/24, on the Spanish VAT exemption for services supplied by cost-sharing groups. The taxpayers, Spanish group entities, provided cleaning services to healthcare and education buildings. The tax authorities denied the taxpayers’ request for a VAT exemption on the grounds that the services were outsourced and not directly related to tax-exempt activities. Upon request for preliminary ruling, the ECJ held that Directive 2006/112/EC on the common system of VAT must be interpreted as precluding: 1) national legislation under which ...