Press Release: VAT – Commission asks Spain to amend treatment of supplies of goods made to the Catholic Church

The European Commission decided on 16 December 2005 to send to Spain a formal request to bring into line with Community law some tax commitments that it has made under the 'Agreement between the Spanish State and the Holy See on economic affairs' of 3 January 1979. Spain maintained that the Agreement in question obliged it to apply an exemption from Value Added Tax (VAT) to certain supplies of goods made to the Catholic Church.