The CJEU has agreed with the advocate general’s opinions that the cost sharing exemption cannot as Germany argued apply only to supplies to members of cost sharing groups (CSGs) with exempt health related activities. Equally though in a decision that will come as both a surprise and disappointment to the finance sector it cannot apply to supplies to members whose exempt activities are not listed in the VAT Directive article 132 (the public interest exemptions of health education welfare sport and culture etc.) due to its location in the Directive. So what does this mean for the UK and for the rest of the EU? From a UK perspective the judgments shouldn’t have a significant impact on the sectors the CJEU has precluded from the CSE as connected entities in the financial services sector tend to use the...
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