Case C-377/11

International Bingo Technology SA

v

Tribunal Económico-Administrativo Regional de Cataluña (TEARC)

(Reference for a preliminary ruling from the Tribunal Superior de Justicia de Cataluña)

‛Sixth VAT Directive — Articles 11A(1)(a), 17(5) and 19(1) — Organisation of games of bingo — Legal obligation to use part of the card price to pay winnings to players — Calculation of the basis of assessment’

Summary of the Judgment

1. Harmonisation of fiscal legislation — Common system of value added tax — Taxable amount — Sale of bingo cards — Deduction of the portion of the sale price fixed in advance by legislation and intended to be used to pay winnings to players

   (Council Directive 77/388, Art. 11A(1)(a))

2. Harmonisation of fiscal legislation — Common system of value added tax — Deduction of input tax — Deduction on a pro-rata basis — Calculation — Turnover which must be included in the denominator of the fraction — Portion, fixed in advance by legislation, of the sale price of bingo cards which must be returned to the players as winnings — Not included

   (Council Directive 77/388, Arts 11A(1)(a), 17(5) and 19(1))

1.  Article 11A(1)(a) of Sixth Council Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes, as amended by Directive 98/80, must be interpreted as meaning that, in the case of the sale of bingo cards, the taxable amount for VAT does not include the portion of the card price fixed in advance by legislation and intended to be used to pay winnings to players.

   Since the portion of the card price which is paid as winnings to players is fixed in advance and is mandatory, it cannot be regarded as forming part of the consideration received by the organiser of the game for the supply of the service provided to players, which consideration forms the basis of assessment.

   (see paras 25, 28, 33, operative part 1)

2.  Articles 17(5) and 19(1) of Sixth Directive 77/388, as amended by Directive 98/80, must be interpreted as meaning that the Member States may not provide that, for the purposes of calculating the deductible proportion of VAT, the portion, fixed in advance by legislation, of the bingo card price which must be returned to players as winnings is to be regarded as forming part of the turnover which must be included in the denominator of the fraction referred to in Article 19(1).

   Firstly, the Member States may not apply to certain transactions a rule for determining the taxable amount other than the general rule laid down in Article 11A(1)(a) of the directive. Secondly, that portion may not be included in the basis of assessment and, accordingly, cannot be regarded as forming part of the turnover of the organiser of the game.

   (see paras 37-39, operative part 2)

Case C-377/11

International Bingo Technology SA

v

Tribunal Económico-Administrativo Regional de Cataluña (TEARC)

(Reference for a preliminary ruling from the Tribunal Superior de Justicia de Cataluña)

‛Sixth VAT Directive — Articles 11A(1)(a), 17(5) and 19(1) — Organisation of games of bingo — Legal obligation to use part of the card price to pay winnings to players — Calculation of the basis of assessment’

Summary of the Judgment

1. Harmonisation of fiscal legislation — Common system of value added tax — Taxable amount — Sale of bingo cards — Deduction of the portion of the sale price fixed in advance by legislation and intended to be used to pay winnings to players

   (Council Directive 77/388, Art. 11A(1)(a))

2. Harmonisation of fiscal legislation — Common system of value added tax — Deduction of input tax — Deduction on a pro-rata basis — Calculation — Turnover which must be included in the denominator of the fraction — Portion, fixed in advance by legislation, of the sale price of bingo cards which must be returned to the players as winnings — Not included

   (Council Directive 77/388, Arts 11A(1)(a), 17(5) and 19(1))

1.  Article 11A(1)(a) of Sixth Council Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes, as amended by Directive 98/80, must be interpreted as meaning that, in the case of the sale of bingo cards, the taxable amount for VAT does not include the portion of the card price fixed in advance by legislation and intended to be used to pay winnings to players.

   Since the portion of the card price which is paid as winnings to players is fixed in advance and is mandatory, it cannot be regarded as forming part of the consideration received by the organiser of the game for the supply of the service provided to players, which consideration forms the basis of assessment.

   (see paras 25, 28, 33, operative part 1)

2.  Articles 17(5) and 19(1) of Sixth Directive 77/388, as amended by Directive 98/80, must be interpreted as meaning that the Member States may not provide that, for the purposes of calculating the deductible proportion of VAT, the portion, fixed in advance by legislation, of the bingo card price which must be returned to players as winnings is to be regarded as forming part of the turnover which must be included in the denominator of the fraction referred to in Article 19(1).

   Firstly, the Member States may not apply to certain transactions a rule for determining the taxable amount other than the general rule laid down in Article 11A(1)(a) of the directive. Secondly, that portion may not be included in the basis of assessment and, accordingly, cannot be regarded as forming part of the turnover of the organiser of the game.

   (see paras 37-39, operative part 2)