Judgment_paragraph 22 · Frenetikexito – Unipessoal Lda v Autoridade Tributária e Aduaneira (C-581/19)

22As is clear from settled case-law, the terms used to specify the exemptions in Article 132 of Directive 2006/112 are to be interpreted strictly. Nevertheless, the interpretation of those terms must be consistent with the objectives pursued by those exemptions and comply with the requirements of the principle of fiscal neutrality inherent in the common system of VAT. However, that requirement of strict interpretation does not mean that the terms used to specify the exemptions referred to in Article 132 should be construed in such a way as to deprive them of their intended effect (judgment of 8 October 2020, Finanzamt D, C‑657/19, EU:C:2020:811, paragraph 28 and the case-law cited).