Advocate General Kokott’s opinion in the case of Momtrade Ruse OOD, a Bulgarian company, has clarified a number of issues in respect of this exemption:
- the services must be supplied by a body “recognised by the Member State concerned as being devoted to social wellbeing” – the “Member State concerned” is the Member State where the services are carried out, which is not necessarily the place of supply;
- the Member State of the place of supply is responsible for determining whether the supply is “closely linked to welfare and social security work”;
- the relief has direct effect; and
- just because a commercial company is registered as a provider of social services with a state agency would not necessarily mean that the company is “devoted to social wellbeing”.