HMRC v Isle of Wight Council & ors [2008] EUECJ C-288/07

Preliminary ruling (about 10 pages) of the European Court of Justice on a reference from the English High Court about the application of the special rules for public authorities in Article 13(1) of The VAT Directive (formerly Article 4.5 of the sixth VAT directive).

In line with the Advocate General opinion, the court held that:

The court also held that "significant distortions of competition" meant any distortions that were not negligible. (The Advocate General had thought that it meant "out of the ordinary".)

The court accepted (for the purpose of the case) the view of the UK courts that the provision of off-street car parking was part of the public authority functions of local government.

The matter now returns to the High Court, which will presumably allow HMRC's appeal against the VAT Tribunal judgment.

For further information or advice please contact Franck Latrémolière.

Filed under ECJ/CFI, Economic activity, HMRC, VAT.

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