Keywords
Summary

Keywords

Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Deduction of input tax

(Council Directive 77/388, Arts 6(2)(a) and 17(2))

Summary

Articles 6(2)(a) and 17(2) of Sixth Council Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes must be interpreted as not being applicable to the use of goods and services allocated to the business for the purpose of transactions other than the taxable transactions of the taxable person, activities such as those by which an association promotes the general interests of its members, as the value added tax due in respect of the acquisition of those goods and services, and relating to such transactions, is not deductible.

Article 6(2)(a) of the directive is not intended to establish a rule that transactions outside the scope of the system of value added tax may be considered to be carried out for ‘purposes other than’ those of the business within the meaning of that provision.

(see paras 38, 40, operative part)