European Commission: France must charge VAT on tickets for sporting events

The European Commission asked France "to levy VAT on tickets for admission to matches and other sporting events which are not subject to entertainment tax" in a letter sent to the French Public Authorities on 10/07/2014.

Under the VAT Directive of the European Commission, admission to sporting events should be subject to VAT. However, certain exemptions are allowed, which is how France can apply the tax on entertainment (12%).

"France has made it possible for municipalities to exempt sporting events organised on their territory from entertainment tax, and some of them have made use of this possibility. The Commission takes the view that, in this case, the VAT exemption should no longer exist," said the European body. (That is, some French municipalities have exempted sporting events from the entertainment tax, and do not even require VAT. The Commission feels that if the entertainment tax is not paid for these events, VAT must be applied.)

France has two months to make a "satisfactory response"; if not, the Commission may take the case to the Court of Justice of the European Union.