European General Court Issues Preliminary Ruling on VAT Regarding Unlicensed Public Communication of Musical Works

The European General Court (EGC) Feb. 11 issued a preliminary ruling for Case No. T-643/24, on VAT regarding the unlicensed public communication of musical works. The taxpayer, a Romanian company operating a guest house, broadcasted musical works without the required license and sought clarification on whether the act constituted a taxable supply of services and whether VAT applied to the entire tripled amount. Upon request for a preliminary ruling, the EGC held that Council Directive 2006/112/EC on the common system of VAT must be interpreted as meaning that: 1) rights holders provide a supply of services for consideration when users ...