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05/10/2021 - Amusement parks: differentiated VAT rates for seasonal and permanent activities

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Articoli Correlati: VAT - recreation activities - differentiated rates

On 9 September 2021, the E.U. Court of Justice in the judgment no. C-406/20 made in case no. C-406/20 provided clarification on a dubious question posed by a company that manages a recreational park in Germany which, under national legislation, to operations relating to the entrance to the recreational park when relating to shows not established on the occasion of seasonal and temporary fairs applied a reduced VAT rate, while subjecting the operations carried out by permanently established show exhibitors to the normal VAT rate. The ruling of the court is that European legislation does not preclude national legislation under which the services provided by traveling show exhibitors, on the one hand, and those provided by permanently established show exhibitors and which take the form of recreational parks, on the other hand, they are subject to separate VAT rates, one reduced and the other normal, provided that the principle of fiscal neutrality is respected. EU law does not prevent the referring court, if it encounters particular difficulties in verifying compliance with the principle of fiscal neutrality, from having, under the conditions provided for by national law, an expert opinion intended to guide its judgment.