Opinion of the Advocate General — ECLI:EU:C:2006:263
Date: 2006-04-27
Language of the case: German
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Action for failure to fulfil obligations - successful;Action for failure to fulfil obligations - unfounded
Origin: Austria

Summary of the Judgment Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Special scheme for small undertakings (Council Directive 77/388, Arts 18(1)(a) and (2), 22(3) to (5), and 24(1)) A Member State which allows taxable persons not established in that Member State who transport passengers there not to submit tax return forms and not to pay the net amount of value added tax when their annual turnover is below a certain amount, in that case deeming the amount of tax due to be equal to the amount of deductible tax and which makes application of the simplified rules contingent on that value added tax not appearing on invoices or in other documents serving as invoices, has failed to fulfil its obligations under Articles 18(1)(a) and (2) and 22(3) to (5) of Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes. Such a scheme exceeds the powers enjoyed by the Member States under Article 24(1) of the Sixth Directive, since it does not adopt ‘simplified procedures for charging and collecting the tax’ but exempts the undertakings concerned from declaring and paying value added tax. (see paras 27, 29, operative part)