Opinion of the Advocate General — ECLI:EU:C:2004:801
Date: 2004-12-14
Language of the case: English
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Action for failure to fulfil obligations
Origin: United Kingdom

Summary of the Judgment Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Deduction of input tax – National legislation allowing an employer to deduct the tax on supplies of fuel to his employees – Fuel not used solely for business purposes – Not permissible (Council Directive 77/388, Arts 17(2)(a) and 18(1)(a)) By granting taxable persons, in this case employers, the right to deduct value added tax on certain supplies of fuel to non-taxable persons, in this case their employees, in conditions that do not ensure that the tax deducted attaches solely to fuel used for the purposes of the taxable person’s taxable transactions, a Member State fails to fulfil its obligations under Articles 17(2)(a) and 18(1)(a) of Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes. (see paras 18, 26, 31 and operative part)