Opinion of the Advocate General — ECLI:EU:C:2010:580
Date: 2010-10-05
Language of the case: Dutch
Subject matter: Taxation;Value added tax
Procedure: Action for failure to fulfil obligations - successful
Origin: Netherlands

Summary of the Judgment Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Member States’ right to apply a reduced rate to certain supplies of goods and services (Council Directives 77/388, as amended by Directive 2006/18, Art. 12, Annex H, and 2006/112, Arts 96 to 99(1), Annex III) By applying a reduced rate of value added tax to all supplies, imports, and intra-Community acquisitions of horses, a Member State fails to fulfil its obligations under Article 12, read in conjunction with Annex H, of Sixth Directive 77/388/EEC on the harmonisation of the laws of the Member States relating to turnover taxes, as amended by Directive 2006/18/EC, and under Articles 96 to 99(1) of Directive 2006/112/EC on the common system of value added tax, read in conjunction with Annex III thereto. First, point 1 of Annex III authorises the application of a reduced rate of VAT only in respect of live animals normally intended for use in the preparation of those foodstuffs and, second, the objective of that provision is to facilitate the purchase of those foodstuffs by the final consumer. With regard to the particular situation, in the European Union, of horses which, while not normally being intended for use in the preparation of foodstuffs, may nevertheless in some cases be supplied for consumption, it must be considered that, in the light of the EU legislature’s objective of making essential commodities cheaper for the final consumer, point 1 of Annex III to Directive 2006/112 must be interpreted as meaning that only the supply of a horse for slaughter in order to be used in the preparation of foodstuffs may be subject to a reduced rate of VAT. (see paras 54, 57, 68, operative part)