# C_2016260EN.01003001.xml

| 18.7.2016 | EN | Official Journal of the European Union | C 260/30 |
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Reference for a preliminary ruling from Upper Tribunal (Tax and Chancery Chamber) (United Kingdom) made on 12 May 2016 – Shields & Sons Partnership v The Commissioners for Her Majesty's Revenue and Customs

(Case C-262/16)

(2016/C 260/38)

Language of the case: English

Referring court

Upper Tribunal (Tax and Chancery Chamber)

Parties to the main proceedings

Applicant: Shields & Sons Partnership

Defendant: The Commissioners for Her Majesty's Revenue and Customs

Questions referred

| 1. | With regard to the common flat-rate scheme for farmers which is established by Chapter 2 of Title XII of Council Directive (EC) 2006/112/EC( 1 ), is Article 296(2) to be interpreted as providing an exhaustive regime as to when a Member State is able to exclude a farmer from the common agricultural flat-rate scheme? In particular:
1.1.
Is a Member State only able to exclude farmers from the common flat-rate scheme for farmers pursuant to Article 296(2)? 1.2.
Is a Member State also able to exclude a farmer from the common flat-rate scheme for farmers using Article 299? 1.3.
Does the principle of fiscal neutrality give a Member State a right to exclude a farmer from the common flat-rate scheme for farmers? 1.4.
Do Member States have an entitlement to exclude farmers from the common flat-rate scheme for farmers on any other grounds? | 1.1. | Is a Member State only able to exclude farmers from the common flat-rate scheme for farmers pursuant to Article 296(2)? | 1.2. | Is a Member State also able to exclude a farmer from the common flat-rate scheme for farmers using Article 299? | 1.3. | Does the principle of fiscal neutrality give a Member State a right to exclude a farmer from the common flat-rate scheme for farmers? | 1.4. | Do Member States have an entitlement to exclude farmers from the common flat-rate scheme for farmers on any other grounds? |
| ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---- | ----------------------------------------------------------------------------------------------------------------------- | ---- | --------------------------------------------------------------------------------------------------------------- | ---- | ------------------------------------------------------------------------------------------------------------------------------------- | ---- | -------------------------------------------------------------------------------------------------------------------------- |
| 1.1. | Is a Member State only able to exclude farmers from the common flat-rate scheme for farmers pursuant to Article 296(2)? | | | | | | | | |
| 1.2. | Is a Member State also able to exclude a farmer from the common flat-rate scheme for farmers using Article 299? | | | | | | | | |
| 1.3. | Does the principle of fiscal neutrality give a Member State a right to exclude a farmer from the common flat-rate scheme for farmers? | | | | | | | | |
| 1.4. | Do Member States have an entitlement to exclude farmers from the common flat-rate scheme for farmers on any other grounds? | | | | | | | | |

| 2. | How is the term ‘categories of farmers’ in Article 296(2) of Council Directive (EC) 2006/112/EC to be interpreted? In particular:
2.1.
Must a relevant category of farmers be capable of being identified by reference to objective characteristics? 2.2.
Can a relevant category of farmers be capable of being identified by reference to economic considerations? 2.3.
What level of precision is required in identifying a category of farmers which a Member State has purported to exclude? 2.4.
Does it entitle a Member State to treat as a relevant category ‘farmers who are found to be recovering substantially more as members of the flat-rate scheme than they would if they were registered for VAT’? | 2.1. | Must a relevant category of farmers be capable of being identified by reference to objective characteristics? | 2.2. | Can a relevant category of farmers be capable of being identified by reference to economic considerations? | 2.3. | What level of precision is required in identifying a category of farmers which a Member State has purported to exclude? | 2.4. | Does it entitle a Member State to treat as a relevant category ‘farmers who are found to be recovering substantially more as members of the flat-rate scheme than they would if they were registered for VAT’? |
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| 2.1. | Must a relevant category of farmers be capable of being identified by reference to objective characteristics? | | | | | | | | |
| 2.2. | Can a relevant category of farmers be capable of being identified by reference to economic considerations? | | | | | | | | |
| 2.3. | What level of precision is required in identifying a category of farmers which a Member State has purported to exclude? | | | | | | | | |
| 2.4. | Does it entitle a Member State to treat as a relevant category ‘farmers who are found to be recovering substantially more as members of the flat-rate scheme than they would if they were registered for VAT’? | | | | | | | | |

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( 1 )  Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax OJ L 347, p. 1

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