Keywords
Summary

Keywords

Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value added tax — Exemptions provided for by the Sixth Directive — Exemption for the letting of immovable property — Definition — Grant of right to install cigarette vending machines on commercial premises — Not included — (Council Directive 77/388, Art. 13B(b))

Summary

On a proper construction of Article 13B(b) of Sixth Council Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes, the grant, by the owner of premises to an owner of a cigarette vending machine, of the right to install the machine, and to operate and maintain it in the premises for a period of two years, in a place nominated by the owner of the premises, in return for a percentage of the gross profits on the sales of cigarettes and other tobacco goods in the premises, but with no rights of possession or control being granted to the owner of the machine other than those expressly set out in the agreement between the parties, does not amount to a letting of immovable property within the meaning of that provision.

see para. 31, operative part