Keywords
Summary

Keywords

Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Taxable amount – National derogating measures

(Council Directive 77/388, Arts 5(6), 6(2), 11A(1)(a), and 27)

Summary

Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes must be interpreted as precluding a Member State from applying to transactions, effected between connected parties having agreed a price which is patently lower than the open market price, a rule for determining the taxable amount other than the general rule laid down in Article 11A(1)(a) of that directive, by extending the scope of the rules for determining the taxable amount on the application of goods and services for private use by a taxable person, within the meaning of Articles 5(6) and 6(2) of that directive, when the procedure provided for in Article 27 of that directive to obtain authorisation for such derogation from that general rule has not been followed by that Member State.

(see para. 40, operative part)