Opinion of the Advocate General — ECLI:EU:C:2005:111
Date: 2005-02-24
Language of the case: German
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Reference for a preliminary ruling
Origin: Austria

Summary of the Judgment 1. Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Taxable transactions — Supplies of goods or services effected for consideration — Meaning — New share issue — Not included (Council Directive 77/388, Art. 2(1)) 2. Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Deduction of input tax — Tax charged on expenditure incurred for supplies acquired in the context of a share issue — Right to deduct — Condition (Council Directive 77/388, Art. 17(1) and (2)) 1. A new share issue, whether or not carried out in connection with admission of the company concerned to a stock exchange, does not constitute a transaction falling within the scope of Article 2(1) of Sixth Council Directive (77/388/EEC) on the harmonisation of the laws of the Member States relating to turnover taxes, as amended by Directive 95/7. That transaction does not constitute a supply of goods or of services for consideration within the meaning of that provision. (see paras 27-28, operative part 1) 2. Article 17(1) and (2) of Sixth Directive 77/388, as amended by Directive 95/7, confer the right to deduct in its entirety the VAT charged on the expenses incurred by a taxable person for the various supplies acquired by him in connection with a share issue, provided that all the transactions undertaken by the taxable person in the context of his economic activity constitute taxed transactions. The costs of those supplies form part of the overheads of the company concerned and are, as such, component parts of the price of its products, as those supplies have a direct and immediate link with the whole economic activity of the taxable person. (see paras 36, 38, operative part 2)