# C_2013325EN.01000202.xml

| 9.11.2013 | EN | Official Journal of the European Union | C 325/2 |
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9.11.2013

EN

Official Journal of the European Union

C 325/2

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Judgment of the Court (First Chamber) of 12 September 2013 (request for a preliminary ruling from the Conseil d’État — France) — Le Crédit Lyonnais v Ministre du Budget, des Comptes publics et de la Réforme de l’État

(Case C-388/11) (1)

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(Value added tax - Sixth Directive 77/388/EEC - Articles 17 and 19 - Deduction of input tax paid - Use of goods and services for both taxable and exempt transactions - Proportional deduction - Calculation of the proportion - Branches established in other Member States and in third States - Not taking their turnover into account)

2013/C 325/03

Language of the case: French

Referring court

Referring court

Conseil d’État

Parties to the main proceedings

Parties to the main proceedings

Applicant: Le Crédit Lyonnais

Applicant:

Defendant: Ministre du Budget, des Comptes publics et de la Réforme de l’État

Defendant:

Re:

Re:

Request for a preliminary ruling — Conseil d’État — Interpretation of Article 13B(d)(1) to (5), Article 17(2), (3)(a) and (c), and (5), and Article 19 of the 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) — Deduction of input tax — Goods and services used both for deductible and non-deductible transactions — Calculation of the deductible proportion — Obligation of the principal establishment of a company established in a Member State to take account of income of branches established in another Member State

Operative part of the judgment

Operative part of the judgment

| 1. | Article 17(2) and (5) and Article 19(1) of the 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, must be interpreted as meaning that, in determining the deductible proportion of VAT applicable to it, a company, the principal establishment of which is situated in a Member State, may not take into account the turnover of its branches established in other Member States. |
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1.

Article 17(2) and (5) and Article 19(1) of the 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, must be interpreted as meaning that, in determining the deductible proportion of VAT applicable to it, a company, the principal establishment of which is situated in a Member State, may not take into account the turnover of its branches established in other Member States.

| 2. | Article 17(3)(a) and (c) and Article 19(1) of the Sixth Directive 77/388 must be interpreted as meaning that, in determining the deductible proportion of VAT applicable to it, a company, the principal establishment of which is situated in a Member State, may not take into account the turnover of its branches established in third States. |
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2.

Article 17(3)(a) and (c) and Article 19(1) of the Sixth Directive 77/388 must be interpreted as meaning that, in determining the deductible proportion of VAT applicable to it, a company, the principal establishment of which is situated in a Member State, may not take into account the turnover of its branches established in third States.

| 3. | The third subparagraph of Article 17(5) of the Sixth Directive 77/388 must be interpreted as not permitting a Member State to adopt a rule for the calculation of the deductible proportion per sector of business of a company subject to tax which authorises that company to take into account the turnover of a branch established in another Member State or in a third State. |
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3.

The third subparagraph of Article 17(5) of the Sixth Directive 77/388 must be interpreted as not permitting a Member State to adopt a rule for the calculation of the deductible proportion per sector of business of a company subject to tax which authorises that company to take into account the turnover of a branch established in another Member State or in a third State.

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(1)  OJ 2011 C 298, 8.10.2011.

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