Legislator Case Law & Legislation
DE FR IT EN
Analyze in Legislator
KHO:1997:3 AI generated

Non-profit foundation's theater activities deemed profit-seeking and VAT taxable despite public funding.

Case Number KHO:1997:3
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted
Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Supreme Administrative Court ruled that a foundation's theater activities constituted taxable business operations under VAT law. Although the foundation was a non-profit entity receiving public support, its continuous theater work targeted an unlimited customer base and competed with commercial cultural services. The court determined these factors established an economic activity, granting the foundation the right to register as a VAT payer for this specific operation.

Legislator headnote

AI generated

Arvonlisäverolaki 1 § 1 mom 1 kohta; Arvonlisäverolaki 4 §: A non-profit organization's continuous cultural activities targeting an unlimited market and competing with commercial services are considered economic activities, making the organization liable for VAT registration and payment.

Keywords

AI generated
non-profit organization VAT liability economic activity public funding theater services profit-seeking purpose unlimited customer base

Cited Legislation

AI generated
Arvonlisäverolaki 1 § 1 mom 1 kohta
Arvonlisäverolaki 4 §
Arvonlisäverolaki 12 §
AI generated
kho-precedent_2016_128
Court dismissed VAT refund claim where museum income did not exempt self-use property services from tax.
kho-precedent_2009_5
Supreme Administrative Court dismissed appeal; business-like charity activities still qualify for tax exemption under Finnish law.
kho-precedent_2009_102
Court dismisses appeal against public procurement decision excluding a company due to lack of statutory exclusion grounds.
kko-precedent_2011_79
Supreme Court allows Chapter 11 proceedings for a foundation conducting economic activities despite statutory silence.
kho-precedent_1997_147
VAT input tax deduction denied for business use of private residence without separate accounting.

Need to analyze how this precedent applies to your matter?

Cross-reference this judgment against statutes, commentaries, and subsequent citing case law inside Legislator AI.

Open in Legislator →

Full text

Säätiö, joka oli tuloverolaissa tarkoitettu yleishyödyllinen yhteisö, harjoitti tarkoituksensa mukaista kaupungin teatteritoimintaa. Säätiö oli tuon toiminnan osalta arvonlisäverolain 4 §:n nojalla vapautettu arvonlisäverovelvollisuudesta. Teatteritoiminta oli jatkuvaa, suuntautui rajoittamattomaan asiakaskuntaan ja tapahtui kilpailuolosuhteissa muiden kulttuuri- ja vapaa-ajanviettopalvelujen kanssa. Toimintaa oli julkisesta tuesta huolimatta katsottava harjoitetun ansiotarkoituksessa. Teatteritoimintaa harjoitettiin näin ollen arvonlisäverolaissa tarkoitulla tavalla liiketoiminnan muodossa. Säätiöllä oli oikeus hakeutua verovelvolliseksi tästä toiminnastaan. Ennakkotieto ajalle 1.1.1995-31.12.1996

ArvonlisäveroL 1 § 1 mom 1 kohta

ArvonlisäveroL 4 §

ArvonlisäveroL 12 §