VAT on prize money: the Pavlína Baštová decision of the CJEU

The decision of the Court of Justice of the EU (CJEU) in the Pavlína Baštová case is interesting for the sports' world.

The CJEU decided three issues :
VAT on prize money (for horse races) ; the deductibility of input tax and the applicable tax rate ; also on other services. The result was quite remarkable : prize money, which is not a fixed amount but is variable with the result of the horse race, is not a payment directly related to a service and, therefore, not taxable for VAT.