CJEU: VAT on ORF’s programme fee is in line with EU VAT law

In its decision of 26 October 2023, case C-249/22, Gebühren Info Service GmbH (GIS), the CJEU confirmed that the VAT on the programme fee is in line with the provisions of the EU VAT Directive.

Underlying case

According to GIS, the programme fee of ORF (Austrian Broadcasting Corporation) is subject to VAT. The matter in dispute was whether the taxation of the programme fee of ORF is in line with the EU VAT Directive.

CJEU decision

In general, Article 132 para. 1 (q) of the VAT Directive provides for the VAT exemption of “activities, other than those of a commercial nature, carried out by public radio and television bodies”. However, Article 378 of the VAT Directive allows the Republic of Austria to derogate from those provisions by giving that Member State the option to continue to tax the transactions listed in point 2 of Part A of Annex X to that directive, which refers to the activities, other than those of a commercial nature, carried out by public radio and television bodies.

As according to the CJEU, the arrangements for the taxation of ORF’s programme fee have remained essentially unchanged since the accession of the Republic of Austria to the European Union, the VAT on the programme fee of ORF is not contrary to EU law.