The European Court of Justice (ECJ) ruled on 22 January 2015 in the case of Regie Communal Autonome du Stade Luc Varenne v Etat Belge. A preliminary question had been put to the ECJ concerning VAT on leasing of immovable property. This case concerned the making available the facilities to Royal Football Club de Tournai ASBL (RFCT) of a sports installation including the football pitch and changing rooms to RFCT on an ad hoc basis for up to 18 days per season.

The ECJ was asked whether this would constitute an exempt letting of immovable property under Article 13B(b) of the VAT Directive where the party that grants the right of use and exploitation of the property is entitled to grant the same rights to other persons on other days and has the right of access to the facilities at any time without prior consent of the holder of the right to use the property, so as to ensure that facilities are being used properly and to pre-empt any damage, provided that this access did not disrupt any sporting events.

Also the owner retains a right of permanent control of access to the facilities, including at the time they are used by RFCT, and requires a fee of EUR 1,750 per day for using the pitch, changing rooms, bar and the service of caretaking and surveillance for the whole facilities. 20% of the fee is for the right of access to the pitch and 80% is for the services of maintenance, cleaning of the pitch and other services provided by the party granting the right of access.

Article 13 is concerned with VAT exemptions and Article 13B(b) lists “other exemptions” which include the letting of premises and sites for parking vehicles.

The ECJ ruled on 22 January 2015 that Article 13B(b) of the VAT Directive is to be interpreted to mean that a contract making available a stadium while reserving certain rights and prerogatives to the owner and providing for various services that amount to 80% of the amount payable under the contract do not as a general rule constitute letting of immovable property under that provision.