Keywords
Summary

Keywords

Tax provisions - Harmonisation of laws - Turnover taxes - Common system of value added tax - Deduction of input tax - Deduction of tax payable on goods and services supplied for the purpose of investment work intended to be used in connection with taxable transactions - Legislative amendment post-dating the supply of those goods or services but pre-dating the commencement of such operations which deprives the taxable person of the right to waive exemption thereof - Irrelevant in regard to the right to deduct - Protection of legitimate expectations - Legal certainty

(Council Directive 77/388, Art. 17)

Summary

$$Article 17 of the Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes must be interpreted as meaning that a taxable person's right to deduct VAT paid in respect of goods or services supplied to him with a view to his carrying out certain letting operations is retained where a legislative amendment post-dating the supply of those goods or services but pre-dating the commencement of such operations deprives the taxable person concerned of the right to waive exemption thereof, even if the VAT was assessed subject to subsequent review. The principles of the protection of legitimate expectations and of legal certainty preclude his being deprived retroactively of that right by such a legislative amendment post-dating the supply of those goods or services.

( see paras 47, 53 and operative part )