# C_2008128EN.01000301.xml

| 24.5.2008 | EN | Official Journal of the European Union | C 128/3 |
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24.5.2008

EN

Official Journal of the European Union

C 128/3

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Judgment of the Court (Second Chamber) of 3 April 2008 (reference for a preliminary ruling from the Bundesfinanzhof, Germany) — Finanzamt Oschatz v Zweckverband zur Trinkwasserversorgung und Abwasserbeseitigung Torgau-Westelbien

(Case C-442/05) (1)

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(Sixth VAT Directive - Articles 4(5) and 12(3)(a) - Annexes D and H - Concept of ‘supply of water’ or ‘water supplies’ - Reduced rate of VAT)

(2008/C 128/04)

Language of the case: German

Referring court

Bundesfinanzhof

Parties to the main proceedings

Applicant: Finanzamt Oschatz

Applicant:

Defendant: Zweckverband zur Trinkwasserversorgung und Abwasserbeseitigung Torgau-Westelbien

Defendant:

Intervener: Bundesministerium der Finanzen

Intervener:

Re:

Reference for a preliminary ruling — Bundesfinanzhof — Interpretation of point 2 of Annex D and Category 2 of Annex H to Directive 77/388/EEC: Sixth Council Directive 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) — Reduced rate for the supply of water — Payment for the installation of mains connections to end users

Operative part of the judgment

| 1. | Article 4(5) 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 and point 2 of Annex D thereto must be interpreted as meaning that the laying of a mains connection which consists, as in the main proceedings, in the installation of piping permitting the connection of a building's water system to the fixed water supply network forms part of the supply of water, listed in that annex, so that a body governed by public law acting as a public authority is a taxable person in respect of that transaction. |
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1.

Article 4(5) 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 and point 2 of Annex D thereto must be interpreted as meaning that the laying of a mains connection which consists, as in the main proceedings, in the installation of piping permitting the connection of a building's water system to the fixed water supply network forms part of the supply of water, listed in that annex, so that a body governed by public law acting as a public authority is a taxable person in respect of that transaction.

| 2. | Article 12(3)(a) of Sixth Directive 77/388 and Category 2 of Annex H thereto must be interpreted as meaning that the laying of a mains connection which consists, as in the main proceedings, in the installation of piping permitting the connection of a building's water system to the fixed water supply network forms part of water supplies. Furthermore, Member States may apply a reduced rate of value added tax to concrete and specific aspects of water supplies, such as the laying of mains connections at issue in the main proceedings, provided that they comply with the principle of fiscal neutrality inherent in the common system of value added tax. |
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2.

Article 12(3)(a) of Sixth Directive 77/388 and Category 2 of Annex H thereto must be interpreted as meaning that the laying of a mains connection which consists, as in the main proceedings, in the installation of piping permitting the connection of a building's water system to the fixed water supply network forms part of water supplies. Furthermore, Member States may apply a reduced rate of value added tax to concrete and specific aspects of water supplies, such as the laying of mains connections at issue in the main proceedings, provided that they comply with the principle of fiscal neutrality inherent in the common system of value added tax.

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(1)  OJ C 60, 11.3.2006.

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