To be qualified as a VAT-base, the consideration must be causally related to the service provided.
The municipality of the German resort collected a tourist tax from the guests staying on its territory, from which some spa facilities could be used free of charge by the residents, employees, and the guests themselves.
In C-344/22. case judgement the Court of Justice of the EU held that there was no direct connection between the assessed tourist tax and the free services that would have made the municipality VATable person, entitling it to deduct the VAT related to the operation of the facilities.
