Opinion of the Advocate General — ECLI:EU:C:1999:137
Date: 1999-03-11
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Reference for a preliminary ruling
Origin: Netherlands

Summary of the Judgment 
Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value 
added tax — Sixth Directive — Scope — Supply of space for the sale of narcotic drugs — 
Covered 
(Council Directive 77/388, Art. 2) 
I - 3971 
SUMMARY — CASE C-158/98 
Article 2 of Sixth Directive 77/388 on the 
harmonisation of the laws of the Member 
States relating to turnover taxes is to be 
interpreted as meaning that renting out a 
space for the sale of narcotic drugs — 
effected with the agreement of the supplier 
of the service — falls within the scope of 
that directive. 
Renting out such space is, in principle, an 
economic activity and the fact that the 
activities pursued there constitute a crim­
inal offence, which may make the renting 
unlawful, does not alter the economic 
character of the renting and does not 
prevent competition in the sector, including 
that between lawful and unlawful activ­
ities. Accordingly, not to charge VAT 
thereon would undermine the principle of 
fiscal neutrality of the VAT scheme. 
I - 3972