# C_2005182EN.01001202.xml

| 23.7.2005 | EN | Official Journal of the European Union | C 182/12 |
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23.7.2005

EN

Official Journal of the European Union

C 182/12

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JUDGMENT OF THE COURT

JUDGMENT OF THE COURT

(Third Chamber)

of 26 May 2005

in Case C-498/03: Reference for a preliminary ruling from the VAT and Duties Tribunal, London in Kingscrest Associates Ltd, Montecello Ltd v Commissioners of Customs and Excise (1)

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(Sixth VAT Directive - Article 13A(1)(g) and (h) - Exempt transactions - Supplies closely linked to welfare and social security work - Supplies closely linked to the protection of children and young persons - Supplies made by bodies other than those governed by public law and recognised as charitable by the Member State concerned - Private, profit-making entity - Meaning of ‘charitable’)

(2005/C 182/23)

Language of the case: English

In Case C-498/03: Reference for a preliminary ruling under Article 234 EC from the VAT and Duties Tribunal, London (United Kingdom), made by decision of 10 June 2003, received at the Court on 26 November 2003, in the proceedings between Kingscrest Associates Ltd, Montecello Ltd and Commissioners of Customs and Excise — the Court (Third Chamber), composed of A. Rosas, President of the Chamber, A. Borg Barthet, A. La Pergola, J. Malenovský and A. Ó Caoimh (Rapporteur), Judges; D. Ruiz-Jarabo Colomer, Advocate General; L. Hewlett, Principal Administrator, for the Registrar, gave a judgment on 26 May 2005, the operative part of which is as follows:

| 1. | The word ‘charitable’ in the English version of Article 13A(1)(g) and (h) 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 is a concept with its own independent meaning in Community law which must be interpreted taking account of all the language versions of that directive. |
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1.

The word ‘charitable’ in the English version of Article 13A(1)(g) and (h) 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 is a concept with its own independent meaning in Community law which must be interpreted taking account of all the language versions of that directive.

| 2. | The meaning of ‘organisations recognised as charitable by the Member State concerned’ in Article 13A(1)(g) and (h) of the Sixth Directive 77/388 does not exclude private profit-making entities. |
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2.

The meaning of ‘organisations recognised as charitable by the Member State concerned’ in Article 13A(1)(g) and (h) of the Sixth Directive 77/388 does not exclude private profit-making entities.

| 3. | It is for the national court to determine, having regard, in particular, to the principles of equal treatment and fiscal neutrality, and taking account of the content of the supplies of services in question, as well as the conditions for making them, whether the recognition of a private profit-making entity, which as such does not have charitable status under domestic law, as charitable for the purposes of the exemptions under Article 13A(1)(g) and (h) of the Sixth Directive 77/388 exceeds the discretion granted by those provisions to the Member States for the purposes of such recognition. |
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3.

It is for the national court to determine, having regard, in particular, to the principles of equal treatment and fiscal neutrality, and taking account of the content of the supplies of services in question, as well as the conditions for making them, whether the recognition of a private profit-making entity, which as such does not have charitable status under domestic law, as charitable for the purposes of the exemptions under Article 13A(1)(g) and (h) of the Sixth Directive 77/388 exceeds the discretion granted by those provisions to the Member States for the purposes of such recognition.

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(1)  OJ C 21 of 24.01.2004.

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