Judgment — ECLI:EU:C:2003:586
Date: 2003-10-23
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Concepts: Rates
Procedure: Action for failure to fulfil obligations - successful
Origin: Germany

Summary of the Judgment 
Tax provisions — Harmonisation of laws — Turnover taxes — Common system of 
value added tax — Member States' option to apply a reduced rate to certain supplies of 
goods and services — Application of a reduced rate to supplies by musical ensembles for a 
concert organiser and the standard rate to supplies by soloists working for an organiser — 
Not permissible 
(Council Directive 77/388, Art. 12(3)(a), third subpara.) 
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SUMMARY — CASE C-109/02 
By applying a reduced rate of value added 
tax to services provided directly to the 
public by musical ensembles or for a 
concert organiser and to services provided 
directly to the public by soloists, but 
applying the standard rate of that tax to 
the services of soloists working for an 
organiser, a Member State fails to fulfil its 
obligations under the third subparagraph 
of Article 12(3)(a) of the Sixth Directive 
77/388 on the harmonisation of the laws of 
the Member States relating to turnover 
taxes. 
In exercising the power to charge a lower 
rate, the Member States must respect the 
principle of fiscal neutrality which pre­
cludes in particular treating similar goods 
and supplies of services, which are thus in 
competition with each other, differently for 
VAT purposes, so that those goods or 
supplies must be subjected to a uniform 
rate. 
(see paras 19-20, 28, operative part) 
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