Keywords
Summary

Keywords

1 . TURNOVER TAX - NATIONAL LEGISLATION - HARMONIZATION - CAPITAL GOODS - CONCEPT - POWERS OF DEFINITION OF THE MEMBER STATES

( SECOND COUNCIL DIRECTIVE OF 11 APRIL 1967 ON THE HARMONIZATION OF LEGISLATION OF MEMBER STATES , ARTICLE 17 )

2 . MEASURES ADOPTED BY AN INSTITUTION - DIRECT EFFECT - DIRECTIVES

( EEC TREATY , ARTICLE 189 )

3 . TURNOVER TAX - LEGISLATION OF THE MEMBER STATES - HARMONIZATION - GOODS USED FOR THE PURPOSES OF AN UNDERTAKING - NOT IN THE NATURE OF CAPITAL GOODS - VALUE-ADDED TAX - IMMEDIATE DEDUCTION - RIGHT - PROTECTION BY THE NATIONAL COURT

( SECOND COUNCIL DIRECTIVE OF 11 APRIL 1967 ON THE HARMONIZATION OF LEGISLATION OF MEMBER STATES , ARTICLES 11 AND 17 )

Summary

1 . THE WORDS ' CAPITAL GOODS ' APPEARING IN THE THIRD INDENT OF ARTICLE 17 OF THE SECOND COUNCIL DIRECTIVE OF 11 APRIL 1967 , ON THE HARMONIZATION OF LEGIS- LATION OF MEMBER STATES CONCERNING TURNOVER TAXES , MEAN GOODS USED FOR THE PURPOSES OF SOME BUSINESS ACTIVITY AND DISTINGUISHABLE BY THEIR DURABLE NATURE AND THEIR VALUE AND SUCH THAT THE ACQUISITION COSTS ARE NOT NORMALLY TREATED AS CURRENT EXPENDITURE , BUT ARE WRITTEN OFF OVER SEVERAL YEARS . THE MEMBER STATES HAVE A CERTAIN MARGIN OF DISCRETION AS REGARDS THE REQUIRE- MENTS WHICH MUST BE SATISFIED CONCERN- ING THE DURABILITY AND VALUE OF THE GOODS , TOGETHER WITH THE RULES APPLICABLE FOR WRITING OFF , PROVIDED THAT THEY PAY DUE REGARD TO THE EXISTENCE OF AN ESSENTIAL DIFFERENCE BETWEEN CAPITAL GOODS AND THE OTHER GOODS USED IN THE MANAGEMENT AND IN THE DAY TO DAY RUNNING OF UNDERTAKINGS . 2 . IT WOULD BE INCOMPATIBLE WITH THE BINDING EFFECT ATTRIBUTED TO A DIRECTIVE BY ARTICLE 189 TO EXCLUDE , IN PRINCIPLE , THE POSSIBILITY THAT THE OBLIGATION WHICH IT IMPOSES MAY BE INVOKED BY THOSE CONCERNED . IN PARTICULAR , WHERE THE COMMUNITY AUTHORITIES HAVE , BY DIRECTIVE , IMPOSED ON MEMBER STATES THE OBLIGATION TO PURSUE A PARTICULAR COURSE OF CONDUCT , THE USEFUL EFFECT OF SUCH AN ACT WOULD BE WEAKENED IF INDIVIDUALS WERE PREVENTED FROM RELYING ON IT BEFORE THEIR NATIONAL COURT AND IF THE LATTER WERE PREVENTED FROM TAKING IT INTO CONSIDERATION AS AN ELEMENT OF COMMUNITY LAW . THIS IS ESPECIALLY SO WHEN THE INDIVIDUAL INVOKES A PROVISION OF A DIRECTIVE BEFORE A NATIONAL COURT IN ORDER THAT THE LATTER SHALL RULE WHETHER THE COMPETENT NATIONAL AUTHORITIES , IN EXERCISING THE CHOICE WHICH IS LEFT TO THEM AS TO THE FORM AND THE METHODS FOR IMPLEMENTING THE DIRECTIVE , HAVE KEPT WITHIN THE LIMITS AS TO THEIR DISCRETION SET OUT IN THE DIRECTIVE .

3 . IN THE CASE OF GOODS PURCHASED IN 1972 AND INTENDED TO BE USED FOR THE PURPOSES OF THE UNDERTAKING WHICH DO NOT BELONG TO THE CATEGORY OF CAPITAL GOODS WITHIN THE MEANING OF ARTICLE 17 OF THE DIRECTIVE , IT IS THE DUTY OF THE NATIONAL COURT BEFORE WHICH THE RULE AS TO IMMEDIATE DEDUCTION SET OUT IN ARTICLE 11 OF THE DIRECTIVE IS INVOKED TO TAKE THOSE FACTS INTO ACCOUNT IN SO FAR AS A NATIONAL IMPLEMENTING MEASURE FALLS OUTSIDE THE LIMITS OF THE MARGIN OF THE DISCRETION LEFT TO THE MEMBER STATES .