V1.230H Sufficient proximity

This principle has seldom been advanced in VAT cases; where it has, it has related to the question of whether a particular activity has become “tainted” by another (illegal)1 activity so that both fall outside the scope of VAT.

In Coffeeshop Siberie2, the appellants provided coffee-shop tables at which the illegal sale of narcotics took place. They argued that, in providing a table for a narcotics dealer and informing customers of the facility, they were colluding in drug dealing, with the result that the provision of the table was outside the scope of VAT. The ECJ held, however,

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