# C_2009220EN.01000602.xml

| 12.9.2009 | EN | Official Journal of the European Union | C 220/6 |
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12.9.2009

EN

Official Journal of the European Union

C 220/6

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Judgment of the Court (Third Chamber) of 16 July 2009 — Commission of the European Communities v Ireland

(Case C-554/07) (1)

1

(Failure of a Member State to fulfil obligations - Value added tax - Directive 2006/112/EC - Articles 2, 9 and 13 - Economic activity in which the State, local authorities and other bodies governed by public law engage - Exemption)

2009/C 220/09

Language of the case: English

Parties

Parties

Applicant: Commission of the European Communities (represented by: R. Lyal and M. Afonso, Agents)

Applicant:

Defendant: Ireland (represented by: D. O’Hagan, acting as Agent, and E. Fitzsimons SC and N. Travers BL)

Defendant:

Re:

Re:

Failure of a Member State to fulfil obligations — Incorrect transposition of Article 13 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1) — Exemption of all economic activities carried on by the State, local authorities and other bodies governed by public law

Operative part of the judgment

Operative part of the judgment

The Court:

| 1. | Declares that, by failing to lay down, in its national legislation, a general requirement that economic activities in which bodies governed by public law engage otherwise than in their capacity as a public authority are to be subject to value added tax;
  by failing to lay down, in its national legislation, either a general requirement that bodies governed by public law acting in their capacity as a public authority are to be subject to value added tax where their treatment as non-taxable persons gives rise to significant distortions of competition or any criterion providing a framework for the exercise, in that connection, of the Minister for Finance’s discretion, and
  by failing to lay down, in its national legislation, a general requirement that bodies governed by public law engaged in activities listed in Annex I to Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax are to be subject to such tax, provided that those activities are not carried out on such a small scale as to be negligible,
  Ireland has failed to fulfil its obligations under Articles 2, 9 and 13 of the Directive. |
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1.

Declares that, by failing to lay down, in its national legislation, a general requirement that economic activities in which bodies governed by public law engage otherwise than in their capacity as a public authority are to be subject to value added tax;

by failing to lay down, in its national legislation, either a general requirement that bodies governed by public law acting in their capacity as a public authority are to be subject to value added tax where their treatment as non-taxable persons gives rise to significant distortions of competition or any criterion providing a framework for the exercise, in that connection, of the Minister for Finance’s discretion, and

by failing to lay down, in its national legislation, a general requirement that bodies governed by public law engaged in activities listed in Annex I to Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax are to be subject to such tax, provided that those activities are not carried out on such a small scale as to be negligible,

Ireland has failed to fulfil its obligations under Articles 2, 9 and 13 of the Directive.

| 2. | Orders Ireland to pay the costs. |
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2.

Orders Ireland to pay the costs.

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(1)  OJ C 51, 23.2.2008.

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