Judgment — ECLI:EU:C:2001:696
Date: 2001-12-13
Language of the case: English
Court formation: Fifth Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Concepts: Transactions in securities
Procedure: Reference for a preliminary ruling
Origin: United Kingdom

Summary of the Judgment 
Tax provisions — Harmonisation of laws — Turnover taxes — Common system of 
value added tax — Exemptions provided by the Sixth Directive — Banking transactions 
referred to in Article 13B(d)(5) — Transactions, including negotiation, in securities — 
Definition 
(Council Directive 77/388, Art. 13B (d)(5)) 
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SUMMARY — CASE C-23S/00 
On a proper construction of Arti­
cle 13B(d)(5) of the Sixth Directive 
77/388 on the harmonisation of the laws 
of the Member States relating to turnover 
taxes 'transactions in securities' means 
transactions liable to create, alter or extin­
guish parties' rights and obligations in 
respect of securities; it does not mean the 
supply of a mere physical, technical or 
administrative service which does not alter 
the legal or financial situation. 
'Negotiation in securities' does not cover 
services, performed by a subcontractor to a 
party to a contract relating to a financial 
product, limited to providing information 
about the financial product and, as the case 
may be, receiving and processing applica­
tions for subscription to the relevant secu­
rities, without issuing them. It does, on the 
other hand, cover the separate service 
rendered to a party to such a contract by 
an intermediary consisting, amongst other 
things, in pointing out suitable opportuni­
ties for the conclusion of such a contract, 
making contact with another party or 
negotiating, in the name of and on behalf 
of a client, the detail of the payments to be 
made by either side. 
(see paras 28, 33, 39-41 
and operative part) 
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