An Organ Grinder receiving donations was not Vatable on those receipts. There was no legal relationship with donors.
A supply of services is effected ‘for consideration’ within the meaning of Article 2(1) of the Sixth Council Directive (77/388) on the harmonization of the laws of the Member States relating to turnover taxes, and hence is taxable, only if there is a legal relationship between the provider of the service and the recipient pursuant to which there is reciprocal performance, the remuneration received by the provider of the service constituting the value actually given in return for the service supplied to the recipient.
Those conditions are not fulfilled in the case of an activity consisting in playing music on the public highway, for which no remuneration is stipulated, even if the musician solicits money and receives sums, in the form of donations, whose amount is however neither quantified nor quantifiable.
Citations:
Times 29-Mar-1994, [1994] ECR 1-743, C-16/93, [1994] EUECJ C-16/93
Links:
Jurisdiction:
European
Cited by:
Cited – Town and Country Factors Ltd v Commissioners of Customs and Excise ECJ 17-Sep-2002
The company organised ‘Spot the Ball’ competitions. The company did not accept a legal obligation to pay out, being bound in honour only, but in fact always did so. They claimed that there was no supply of services.
Held: The Directive . .
Cited – Airtours Holidays Transport Ltd v Revenue and Customs SC 11-May-2016
The court was asked whether the appellant, Airtours Holidays Transport Ltd (formerly MyTravel Group plc), was entitled to recover, by way of input tax VAT charged by PricewaterhouseCoopers LLP in respect of services provided by PwC and paid for by . .
Lists of cited by and citing cases may be incomplete.
VAT
Updated: 20 May 2022; Ref: scu.89908