Case C‑507/16

Entertainment Bulgaria System EOOD

v

Direktor na Direktsia ‘Obzhalvane i danachno-osiguritelna praktika’ — Sofia

(Request for a preliminary ruling from the Administrativen sad Sofia-grad)

(Reference for a preliminary ruling — Taxation — Directive 2006/112/EC — Article 168(a), Article 169(a), Article 214(1)(d) and (e), and Articles 289 and 290 — Deductibility of input value added tax (VAT) due or paid — Output transactions carried out in other Member States — Tax exemption scheme in the Member State in which the right to deduct is exercised)

Summary — Judgment of the Court (Sixth Chamber), 15 November 2017

Harmonisation of fiscal legislation — Common system of value added tax — Deduction of input tax — Reverse charge procedure — Obligation to register affecting the recipient and/or the provider of services relating to the reverse charge procedure — National legislation denying the registered recipient of a right to deduct such tax — Fulfilment of the substantive requirements of the right to deduction and identification of the taxable person for value added tax purposes — Unlawful — National legislation that also fails to grant a right to deduct to a taxable person who enjoys a tax exemption scheme in his Member State of establishment — Lawfulness

(Council Directive 2006/112, as amended by Directive 2009/162, Arts 168(a), 169(a) and 214(1)(d) and (e))

Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, as amended by Council Directive 2009/162/EU of 22 December 2009, must be interpreted as precluding Member State legislation that prevents a taxable person, established in the territory of that Member State, deducting input value added tax due or paid in that Member State in respect of services provided by taxable persons established in other Member States and used to provide services in Member States other than the Member State in which that taxable person is established, on the ground that that taxable person is identified for value added tax purposes by virtue of one of the two cases referred to in Article 214(1)(d) and (e) of Directive 2006/112, as amended by Directive 2009/162. However, Article 168(a) and Article 169(a) of Directive 2006/112, as amended by Directive 2009/162, must be interpreted as precluding legislation of a Member State that prevents a taxable person, established in the territory of that Member State and eligible there for a tax exemption scheme, exercising its right to deduct input value added tax due or paid in that Member State for services provided by taxable persons established in other Member States and used to provide services in Member States other than the Member State in which that taxable person is established.

(see para. 45, operative part)