The Supreme Administrative Court examined how contributions which a joint property association levies on its members are to be treated for VAT purposes. When a joint facility is established to serve a purpose of enduring importance to several properties, it may be managed by a joint property association in which the property owners are members. The grounds on which the costs of construction and operation of the joint facility are to be apportioned are established by ascribing to each property a participatory share in conjunction with the cadastral procedure by which the facility is established. In the event the needs of a joint property association for funds are not covered by other means, cash contributions shall be levied on the members. A condition for a contribution which is levied on the members of a joint property association to be subject to VAT is that the contribution may be deemed to constitute consideration for the supply of goods or services. The Supreme Administrative Court stated that levies that are based on the participatory shares established in the cadastral procedure when the facility was established are imposed in order that the members of the joint property association shall fulfil their joint obligation to contribute to the financing of the joint facility. The Supreme Administrative Court found that contributions levied thus cannot be deemed to constitute consideration for the supply of goods or services from the association to the members. According to the Supreme Administrative Court, the contributions levied on the members for the operation of the association’s joint facility do not pertain to a transaction which is subject to VAT.