Keywords
Summary

Keywords

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1 . Tax provisions - Harmonization of laws - Turnover taxes - Common system of value added tax - Economic activities within the meaning of Article 4 of the Sixth Directive - Grant of a building right over immovable property

( Council Directive 77/388, Art . 4(2 ) )

2 . Tax provisions - Harmonization of laws - Turnover taxes - Common system of value added tax - Supply of goods - Transfer of the right to dispose of tangible property - Creation of a right in rem giving the holder thereof a right of user over immovable property in a Member State which deems such a right to be tangible property - Inclusion

( Council Directive 77/388, Arts 5(1 ) and ( 3)(b ) )

3 . Tax provisions - Harmonization of laws - Turnover taxes - Common system of value added tax - Taxable persons - Concept - Exhaustive definition contained in Article 4 of the Sixth Directive - Exercise by a Member State of the option mentioned in Article 5(3 ) - No effect

( Council Directive 77/388, Arts 4 and 5(3)(b ) )

Summary

1 . The grant by the owner of immovable property to another person of building rights in respect of that property, by authorizing that person to use the immovable property for a specified period in return for consideration, must be regarded an economic activity as defined in Article 4(2 ) of the Sixth Council Directive ( 77/388/EEC ) on the harmonization of the laws of the Member States relating to turnover taxes . Such a transaction entails the exploitation of tangible property for the purpose of obtaining income therefrom on a continuing basis within the meaning of the second sentence of Article 4(2 ) of the Sixth Directive .

2 . Under the terms of Article 5(1 ) of the Sixth Directive "supply of goods" means the transfer of the right to dispose of tangible property as owner . In so far as a Member State has made use of the possibility provided for in Article 5(3)(b ) of the Sixth Directive to consider rights in rem giving the holder thereof a right of user over immovable property to be tangible property, the term "transfer" used in Article 5(1 ) must be interpreted as also covering the creation of such a right .

3 . In accordance with the purpose of the Sixth Directive which is inter alia to found a common system of value added tax upon a uniform definition of "taxable persons", the scope of Article 4 of the Sixth Directive, concerning taxable persons, cannot be altered by the fact that a Member State has or has not exercised the option of assimilating the creation of a building right to the supply of goods, as provided for in Article 5(3)(b ) of the directive .