Case C‑500/13

Gmina Międzyzdroje

v

Minister Finansów

(Request for a preliminary ruling from the Naczelny Sąd Administracyjny)

‛Request for a preliminary ruling — VAT — Directive 2006/112/EC — Deduction of input tax — Capital goods — Immovable property — Adjustment of deductions — National legislation providing for an adjustment period of 10 years’

Summary — Order of the Court (Ninth Chamber), 5 June 2014

1. Questions referred for a preliminary ruling — Questions the answer to which may be clearly deduced from the Court’s existing case-law — Application of Article 99 of the Rules of Procedure

   (Rules of Procedure of the Court of Justice, Art. 99)

2. Harmonisation of fiscal legislation — Common system of value added tax — Deduction of input tax — Capital goods — Obligation on Member States to provide for an adjustment of deductions

   (Council Directive 2006/112, Art. 187)

3. Harmonisation of fiscal legislation — Common system of value added tax — Deduction of input tax — Capital goods — Adjustment of the input tax — Goods used successively during the adjustment period in connection with an exempted activity then with a taxable activity — National legislation providing for an adjustment period of 10 years — Lawfulness

   (Council Directive 2006/112, Arts 167 to 169)

1.  See the text of the decision.

   (see paras 17, 18)

2.  See the text of the decision.

   (see paras 19, 20, 24)

3.  Articles 167, 187 and 189 of Directive 2006/112 on the common system of value added tax, together with the principle of neutrality must be interpreted as not precluding provisions of national law which, in a case where there is a change in the purpose of immovable property acquired as capital goods from an initial use in activities not conferring entitlement to deduct input tax to a subsequent use in activities which do confer such entitlement, provide for an adjustment period of 10 years starting from the time at which the goods are first used and, therefore, do not permit a one-off adjustment during a single tax year.

   In that regard, the requirement for an adjustment period of at least five years for capital goods constitutes an essential element of the system of adjustment introduced by Directive 2006/112, in that it enables inaccuracies to be avoided in the calculation of deductions and unjustified advantages or disadvantages for a taxable person and thus seeks to ensure the neutrality of the tax burden.

   (see paras 29, 30, operative part)

Case C‑500/13

Gmina Międzyzdroje

v

Minister Finansów

(Request for a preliminary ruling from the Naczelny Sąd Administracyjny)

‛Request for a preliminary ruling — VAT — Directive 2006/112/EC — Deduction of input tax — Capital goods — Immovable property — Adjustment of deductions — National legislation providing for an adjustment period of 10 years’

Summary — Order of the Court (Ninth Chamber), 5 June 2014

1. Questions referred for a preliminary ruling — Questions the answer to which may be clearly deduced from the Court’s existing case-law — Application of Article 99 of the Rules of Procedure

   (Rules of Procedure of the Court of Justice, Art. 99)

2. Harmonisation of fiscal legislation — Common system of value added tax — Deduction of input tax — Capital goods — Obligation on Member States to provide for an adjustment of deductions

   (Council Directive 2006/112, Art. 187)

3. Harmonisation of fiscal legislation — Common system of value added tax — Deduction of input tax — Capital goods — Adjustment of the input tax — Goods used successively during the adjustment period in connection with an exempted activity then with a taxable activity — National legislation providing for an adjustment period of 10 years — Lawfulness

   (Council Directive 2006/112, Arts 167 to 169)

1.  See the text of the decision.

   (see paras 17, 18)

2.  See the text of the decision.

   (see paras 19, 20, 24)

3.  Articles 167, 187 and 189 of Directive 2006/112 on the common system of value added tax, together with the principle of neutrality must be interpreted as not precluding provisions of national law which, in a case where there is a change in the purpose of immovable property acquired as capital goods from an initial use in activities not conferring entitlement to deduct input tax to a subsequent use in activities which do confer such entitlement, provide for an adjustment period of 10 years starting from the time at which the goods are first used and, therefore, do not permit a one-off adjustment during a single tax year.

   In that regard, the requirement for an adjustment period of at least five years for capital goods constitutes an essential element of the system of adjustment introduced by Directive 2006/112, in that it enables inaccuracies to be avoided in the calculation of deductions and unjustified advantages or disadvantages for a taxable person and thus seeks to ensure the neutrality of the tax burden.

   (see paras 29, 30, operative part)