V4.187 Exemption—supplies of services by groups involving cost sharing (cost sharing exemption)
This paragraph examines the exemption for services supplied by groups involving cost sharing (commonly referred to as the cost sharing exemption (CSE)).
Cost sharing exemption—Archived EU legislation
Archived Directive 2006/112/EC, art 132(1)(f) provides for the exemption of 'services supplied by independent groups of persons whose activities are exempt from or are not subject to value added tax, for the purpose of rendering their members the services directly necessary for the exercise of their activity, where these groups merely claim from their members exact reimbursement of their share of the joint expenses, provided that such exemption is not likely to produce distortion of competition'.
An attempt to argue that this provision applied in respect of contributions to a fund, made by members of a holiday complex to cover maintenance and management of the site, was dismissed in The Regency Villas Owners Club1 on the grounds that (a) the members were not making exempt
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