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26.11.2005 |
EN |
Official Journal of the European Union |
C 296/2 |
JUDGMENT OF THE COURT
(Third Chamber)
of 6 October 2005
in Case C-243/03: Commission of the European Communities v French Republic (1)
(VAT - Deduction of input tax paid - Capital goods financed by subsidies)
(2005/C 296/03)
Language of the case: French
In Case C-243/03: Commission of the European Communities (Agent: E. Traversa, assisted by N. Coutrelis, avocat) v French Republic (Agents: G. de Bergues and C. Jurgensen-Mercier), supported by: Kingdom of Spain (Agent: N. Díaz Abad) — action under Article 226 EC for failure to fulfil obligations, brought on 6 June 2003 — the Court (Third Chamber), composed of A. Rosas, President of the Chamber, J.-P. Puissochet, S. von Bahr (Rapporteur), J. Malenovský and U. Lõhmus, Judges; M. Poiares Maduro, Advocate General; R. Grass, Registrar, gave a judgment on 6 October 2005, in which it:
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1. |
Declares that, by introducing a special rule limiting the deductibility of value added tax on the purchase of capital goods where they were financed by subsidies, the French Republic has failed to fulfil its obligations under Community law, in particular under Articles 17 and 19 of Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment, as amended by Council Directive 95/7/EC of 10 April 1995; |
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2. |
Orders the Republic of France to pay the costs; |
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3. |
Orders the Kingdom of Spain to pay its own costs. |