# C_2006165EN.01000401.xml

| 15.7.2006 | EN | Official Journal of the European Union | C 165/4 |
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15.7.2006

EN

Official Journal of the European Union

C 165/4

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Judgment of the Court (Third Chamber) of 4 May 2006 (reference for a preliminary ruling from the VAT and Duties Tribunal, London — United Kingdom) — Abbey National plc (with the Inscape Investment Fund as joined party) v Commissioners of Customs & Excise

(Case C-169/04) (1)

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(Sixth VAT Directive - Article 13B(d)(6) - Management of special investment funds - Exemption - Meaning of ‘management’ - Functions of a depositary - Delegation of administrative management function)

(2006/C 165/07)

Language of the case: English

Referring court

VAT and Duties Tribunal, London

Parties to the main proceedings

Applicants: Abbey National plc (with the Inscape Investment Fund as joined party)

Applicants:

Defendants: Commissioners of Customs & Excise

Defendants:

Re:

Reference for a preliminary ruling — VAT and Duties Tribunal, London — Interpretation of Article 13B(d)(6) of Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment (OJ 1977 L 145, p. 1) — Exemption for management of special investment funds — Scope

Operative part of the judgment

| 1. | The concept of ‘management’ of special investment funds in Article 13B(d)(6) of Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment has its own independent meaning in Community law whose content the Member States may not alter. |
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1.

The concept of ‘management’ of special investment funds in Article 13B(d)(6) of Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment has its own independent meaning in Community law whose content the Member States may not alter.

| 2. | Article 13B(d)(6) of Sixth Directive 77/388 is to be interpreted as meaning that the concept of ‘management of special investment funds’ referred to in that provision covers the services performed by a third-party manager in respect of the administrative management of the funds, if, viewed broadly, they form a distinct whole, and are specific to, and essential for, the management of those funds.
  On the other hand, services corresponding to the functions of a depositary, such as those set out in Articles 7(1) and (3) and 14(1) and (3) of Council Directive 85/611/EEC of 20 December 1985 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), are not covered by that concept. |
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2.

Article 13B(d)(6) of Sixth Directive 77/388 is to be interpreted as meaning that the concept of ‘management of special investment funds’ referred to in that provision covers the services performed by a third-party manager in respect of the administrative management of the funds, if, viewed broadly, they form a distinct whole, and are specific to, and essential for, the management of those funds.

On the other hand, services corresponding to the functions of a depositary, such as those set out in Articles 7(1) and (3) and 14(1) and (3) of Council Directive 85/611/EEC of 20 December 1985 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), are not covered by that concept.

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(1)  OJ C 146, 29.05.2004.

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