Mary Upton (Dublin South Central, Labour)
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Question 57: To ask the Minister for Finance his plans to heed the recent ruling in the EU Court of Justice which stated that services to sports clubs can be VAT exempt under certain conditions; his further plans to transpose this information into Irish law; and if he will make a statement on the matter. [41124/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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It is assumed that the Deputy is referring to the Judgment of the European Court of Justice in Case C-253/07 — Canterbury Hockey Club and Canterbury Ladies Hockey Club v The Commissioners for H.M. Revenue and Customs. In that case the European Court of Justice considered the scope of the exemption from VAT provided by Article 13A(1)(m) of the EU Sixth VAT Directive, now Article 132(1)(m) of the EU VAT Directive 2006. That provision provides for exemption from VAT for certain services closely linked to sport or physical education supplied by non-profit making organisations to persons taking part in sport or physical education.

The European Court of Justice ruled that the provision is to be interpreted as meaning that, in the context of persons taking part in sport, it includes services supplied to corporate persons and to unincorporated associations, provided that those services are closely linked and essential to sport, that they are supplied by non-profit-making organisations and that their true beneficiaries are persons taking part in sport. The Court also ruled that Member States are not permitted to limit the exemption under that provision by reference to the recipients of the services in question.

I am further advised by the Revenue Commissioners that Irish VAT law and practice in this area is already fully in conformity with the decision in the case and the services concerned are exempt from VAT in Ireland.