Judgment — ECLI:EU:C:2001:526
Date: 2001-10-09
Language of the case: English
Court formation: Sixth Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Concepts: Leasing or letting of immovable property
Procedure: Reference for a preliminary ruling
Origin: United Kingdom

Summary of the Judgment 
Tax provisions — Harmonisation of laws — Turnover taxes — Common system of 
value added tax — Exemptions provided for by the Sixth Directive — Exemption for the 
letting of immovable property — Meaning — Current lessee making payment to future 
lessee on assignment of the lease — Excluded 
(Council Directive 77/388, Art. 13B(b)) 
The letting of immovable property for the 
purposes of Article 13B(b) of the Sixth 
Directive 77/388 on the harmonisation of 
the laws of the Member States relating to 
turnover taxes essentially involves the land­
lord of property assigning to the tenant, in 
return for rent and for an agreed period, the 
right to occupy his property and to exclude 
other persons from it. Article 13B(b) 
applies to the grant of leases of property 
but not to transactions which are merely 
based on the leases or are ancillary thereto 
and which have not been effected by the 
landlord itself. Therefore, Article 13B(b) 
does not exempt a supply of services which 
is made by a person who does not have any 
interest in the immovable property and 
which consists in the acceptance, for con­
sideration, of an assignment of a lease of 
that property from the lessee. 
(see paras 21, 24, 34 and operative part) 
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