3.8.4 Some specific contractually agreed shares

Specific situations exist where operations are carried out which correspond to a contractually assigned share to each of the parties to a specific contract and which are not paid for. These transactions do not constitute a taxable transaction. In the relevant CJEU case law, an example of such operations is the performing of contractually agreed operations under a ‘consortium contract’. In this situation, it seems that the consortium itself is considered the taxable person and the contractually agreed operations are treated as internal transactions within that taxable entity.1 Where the performance of more of the operations than the share thereof fixed by the said contract for a party to that contract involves payment by the other parties against the operations exceeding that share, those operations constitute a supply of goods or services ‘effected for consideration’ within the meaning of the EU VAT Directive.2