In London Borough of Ealing v HMRC (Case C-633/15) (13 July 2017) the CJEU found that UK legislation (VATA 1994 Sch 9 Group 10 note 3) which excludes services by public bodies from the exemption for supplies of services linked to sport and physical education is precluded by the principal VAT directive.
The London Borough of Ealing (LBE) is a local authority which operates sports facilities. Between 1 June 2009 and 31 August 2012 it had accounted for VAT on admissions to those facilities. In 2013 it submitted a claim for underpayment on the ground that those charges should have been exempt under the principal VAT directive art 132(1)(m). That application was rejected under VATA 1994 Sch 9 Group 10 note 3.
The CJEU noted that art 132(1)(m) which provides that member states may exempt certain supplies of services closely linked to sport or physical...
