77However, by derogation from that general rule, a number of activities of an economic nature are not subject to VAT. One such derogation is established in the first subparagraph of Article 13(1) of Directive 2006/112, according to which activities engaged in by bodies governed by public law acting as public authorities are not subject to that tax. However, even where those bodies carry out such activities as public authorities, they must be considered taxable persons, in accordance in particular with the second subparagraph of Article 13(1) of Directive 2006/112, where their treatment as non-taxable persons would lead to significant distortions of competition (see, to that effect, judgments of 16 September 2008, Isle of Wight Council and Others, C‑288/07, EU:C:2008:505, paragraphs 30 and 31, and of 4 June 2009, SALIX Grundstücks-Vermietungsgesellschaft, C‑102/08, EU:C:2009:345, paragraphs 62 and 63).
Source: EUR-Lex, © European Union, 1998-2026. Reuse authorised under Decision 2011/833/EU.