Lajvér Meliorációs Nonprofit Kft., Lajvér Csapadékvízrendezési Nonprofit Kft. v Nemzeti Adó- és Vámhivatal Dél-dunántúli Regionális Adó Főigazgatósága (NAV)

In Lajvér Meliorációs Nonprofit Kft. Lajvér Csapadékvízrendezési Nonprofit Kft. v Nemzeti Adó- és Vámhivatal Dél-dunántúli Regionális Adó Főigazgatósága (NAV) (Case C-263/15) (2 June 2015) the CJEU found that non-profit companies whose investments had been financed by state aid could be carrying out an economic activity.

The case concerned Hungarian ‘non-profit companies’ established to construct and later operate a water disposal system a reservoir and a rainwater collection system on land belonging to members of the companies. They sub-contracted the works to another company which charged VAT. The Hungarian tax authorities considered that the VAT was not recoverable on the basis that the planned activity would not consist in the supply of services but in the fulfillment of obligations imposed by law. Furthermore the low fees to be charged did not represent consideration. The issue was therefore whether the activity...