Publication of copy of the report on conflict no. 3. VAT. Exempt activities Contrived filing of a company for input VAT deduction

The contrived filing of a newly created company by a Foundation carrying out educational activities in connection with the construction of a new building is declared to be a conflict pursuant to the rule. After analysing the circumstances of the case, the Advisory Committee concludes that in order to obtain the deduction and refund of VAT incurred in the construction of the building, a commercial entity created for this purpose and wholly owned by the Foundation was artificially set up, with no relevant economic effect other than the refund of VAT incurred in the construction of the building.