Publications
14/01/2025

Sportsmen’s image rights: VAT applies to exploitation royalties

The French “Conseil d’État” has rejected the appeal lodged by the “Union des clubs professionnels” trade union, which wished to submit a preliminary question to the CJUE concerning the inclusion or otherwise of royalties for the use of the voice, name or image of sportsmen and women in the scope of application of VAT.

As a reminder, the law provides that services provided for consideration by persons carrying on an independent economic activity are subject to VAT[1]. In addition, the French Sports Code provides that contracts for the use of sportsmen and women’s images must exclude any relationship of subordination with the club or association[2].

In its ruling of 20 December 2024, the French “Conseil d’État” ruled that royalties arising from contracts for the use of sportspersons’ images fall within the scope of VAT. According to the judges, the independence of the sportsmen and women, expressly provided for by the French Sports Code in this type of contract, as well as the method of calculating the royalties, which places an economic risk on the sportsmen and women, justify this liability to VAT.

Although this decision is not unprecedented, the tax judge has enriched case law by referring to E.U. law to justify his position and has clarified the regime applicable to sportsmen’s exploitation contracts.

[1] Articles 256 and 256 A of the General Tax Code

[2] Articles L 222-2-10-1 of the French Sports Code


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