Keywords
Summary

Keywords

Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value added tax — Member States' option to apply a reduced rate to certain supplies of goods and services — Supply of natural gas and electricity — Selective application of the reduced rate to a particular aspect of the supply — Whether permissible — (Council Directive 77/388, Art. 12(3)(b))

Summary

There is nothing in the text of Article 12(3)(b) of the Sixth Directive 77/388, as amended by Directive 96/95, which permits the charging of a reduced rate of value added tax on supplies of natural gas and electricity, which requires that provision to be interpreted as requiring that the reduced rate can only be charged if it is applied to all supplies of natural gas and electricity. A selective application of the reduced rate to concrete and specific aspects, such as the standing charge conferring entitlement to a minimum quantity of electricity for account holders, cannot be excluded, provided that no risk of distortion of competition exists.

see paras 24, 26-28