Court of Justice of the European Union 

Judgment of 29 October 2015, published on 2 November 2015 Case C174/14

In this Judgment, delivered within the scope of a reference for a preliminary ruling, the Court of Justice of the European Union established that the provision by a company of planning and management services for the Regional Health Service , under the terms of a long-term contract entered into with an Autonomous Region, falls within the concept of economic activity of the VAT Directive, and therefore will be subject to VAT unless the said company may be classified as a body governed by public law, that it carries out its activity as a public authority, and that the exemption from VAT does not lead to significant distor- tion of competition.

According to the Court of Justice of the European Union, a joint stock company whose share capital is held by public entities that is not part of the public administration, is governed by private law and is taxed in accordance with the general regime, pursuant to the applicable domestic legislation, may not for the purposes of the VAT Directive be clas- sified as a public law body.