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 — Application of a reduced rate to supplies by musical ensembles for a concert organiser and the standard rate to supplies by soloists working for an organiser — Not permissible — (Council Directive 77/388, Art. 12(3)(a), third subpara.)

Summary

By applying a reduced rate of value added tax to services provided directly to the public by musical ensembles or for a concert organiser and to services provided directly to the public by soloists, but applying the standard rate of that tax to the services of soloists working for an organiser, a Member State fails to fulfil its obligations under the third subparagraph of Article 12(3)(a) of the Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes.

In exercising the power to charge a lower rate, the Member States must respect the principle of fiscal neutrality which precludes in particular treating similar goods and supplies of services, which are thus in competition with each other, differently for VAT purposes, so that those goods or supplies must be subjected to a uniform rate.

see paras 19-20, 28, operative part