Opinion of the Advocate General — ECLI:EU:C:1999:625
Date: 1999-12-16
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 Judgment 
Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value 
added tax — Deduction of input tax — Deduction of tax payable on goods and services 
supplied for the purpose of investment work intended to be used in connection with 
taxable transactions — Legislative amendment post-dating the supply of those goods or 
I - 4279 
SUMMARY — CASE C-396/98 
services but pre-dating the commencement of such operations which deprives the taxable 
person of the right to waive exemption thereof— Irrelevant in regard to the right to 
deduct — Protection of legitimate expectations — Legal certainty 
(Council Directive 77/388, Art. 17) 
Article 17 of the Sixth Directive 77/388 on 
the harmonisation of the laws of the 
Member States relating to turnover taxes 
must be interpreted as meaning that a 
taxable person's right to deduct VAT paid 
in respect of goods or services supplied to 
him with a view to his carrying out certain 
letting operations is retained where a 
legislative amendment post-dating the sup­
ply of those goods or services but pre­
dating the commencement of such opera­
tions deprives the taxable person concerned 
of the right to waive exemption thereof, 
even if the VAT was assessed subject to 
subsequent review. The principles of the 
protection of legitimate expectations and of 
legal certainty preclude his being deprived 
retroactively of that right by such a legis­
lative amendment post-dating the supply of 
those goods or services. 
(see paras 47, 53 and operative part) 
I - 4280