Staatssecretaris van Financiën v Gemeente Vlaardingen

In the Netherlands case of Staatssecretaris van Financiën v Gemeente Vlaardingen (CJEU Case C-299/11) a municipality (G) owned several sports pitches which it let to tenants. The lettings were treated as exempt from VAT. G arranged for the pitches to be resurfaced by contractors and then resumed letting the pitches. The tax authority issued a ruling that G was required to account for VAT on the deemed supply of the resurfaced pitches.

G appealed and the case was referred to the CJEU for a ruling on the interpretation of Article 5(7) of the EC Sixth Directive. Advocate-General Mazák expressed the Opinion that Article 5(7)(a) ‘should be interpreted as meaning that upon the occupation of immovable property by a taxable person for exempt purposes a Member State may charge VAT...