Opinion of the Advocate General — ECLI:EU:C:1997:433
Date: 1997-09-25
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Reference for a preliminary ruling
Origin: Germany

Summary of the J u d g m e n t 
Tax provisions — Harmonization of laws — Turnover taxes — Common system of value added 
tax — Taxable transactions — Supply of services — Extensification, in return for compensation, 
of potato production — Excluded 
(Council Directive 77/388, Arts 6(1) and 11(A)(1)(a)) 
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SUMMARY — CASE C-384/95 
On a proper construction of Articles 6(1) 
and 11(A)(1)(a) of the Sixth Directive 77/388 
on the harmonization of the laws of the 
Member States relating to turnover taxes, 
which are concerned with the definition of a 
supply of services and the constitution of the 
taxable amount respectively, an undertaking 
given by a farmer under a national compen­
sation scheme not to harvest at least 20% of 
his potato crop does not constitute a supply 
of services for the purposes of the directive. 
Consequently, compensation received for 
that purpose is not subject to turnover tax. 
In order for such an undertaking to be cov­
ered by the common system of value added 
tax it must imply consumption, whereas the 
farmer giving the said undertaking does not 
provide services to an identifiable consumer 
or any benefit capable of being regarded as a 
cost component of the activity of another 
person in the commercial chain. 
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