Blurring the lines

Until recently, there was a clear distinction in EU law between economic and business activities. Michael Taylor and David Anderson ask what kinds of activity are now within the scope of VAT following recent CJEU rulings

Until recently there was a clear distinction in EU law between ‘economic activity’ and ‘business activity’. However, a recent judgment of the Court of Justice of the European Union (CJEU) has blurred that distinction. With the UK VAT regime no longer bound by EU law, there could be considerable uncertainty as to what ‘business’ means for UK companies.

Economic activity