Tax provisions - Harmonisation of laws - Turnover taxes - Common system of value added tax - Exemptions provided by the Sixth Directive - Banking transactions referred to in Article 13B(d)(5) - Transactions, including negotiation, in securities - Definition
(Council Directive 77/388, Art. 13B(d)(5))
$$On a proper construction of Article 13B(d)(5) of the Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes transactions in securities means transactions liable to create, alter or extinguish parties' rights and obligations in respect of securities; it does not mean the supply of a mere physical, technical or administrative service which does not alter the legal or financial situation.
Negotiation in securities does not cover services, performed by a subcontractor to a party to a contract relating to a financial product, limited to providing information about the financial product and, as the case may be, receiving and processing applications for subscription to the relevant securities, without issuing them. It does, on the other hand, cover the separate service rendered to a party to such a contract by an intermediary consisting, amongst other things, in pointing out suitable opportunities for the conclusion of such a contract, making contact with another party or negotiating, in the name of and on behalf of a client, the detail of the payments to be made by either side.
( see paras 28, 33, 39-41 and operative part )