Judgment — ECLI:EU:C:2007:232
Date: 2007-04-19
Language of the case: German
Court formation: Third Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Concepts: Other exemptions
Procedure: Reference for a preliminary ruling
Origin: Germany

Summary of the Judgment Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Exemptions provided for in the Sixth Directive (Council Directive 77/388, Art. 13B(d)(2)) Article 13B(d)(2) of the Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes – Common system of value added tax: uniform basis of assessment must be interpreted as meaning that the concept of assumption of obligations excludes from the scope of that provision obligations which are non-pecuniary, such as the obligation to renovate a property. A comparative analysis of the different language versions of that provision reveals terminological differences regarding the concept of assumption of obligations. In certain language versions, such as the German, French and Italian, that expression has a general meaning, whereas in others, such as English and Spanish, it clearly refers to pecuniary obligations. The exemption provided for in Article 13B(d)(2) of the Sixth Directive concerns, in addition to the assumption of obligations, the negotiation and assumption of credit guarantees or any other security for money and the management of credit guarantees. It is common ground that all those transactions are, by their nature, financial services. The same conclusion is also valid for the other transactions set out in subparagraphs 1 and 3 to 6 of Article 13B(d) of that directive. The assumption of the obligation to renovate a building is not, by its nature, a financial transaction within the meaning of Article 13B(d) of the Sixth Directive and therefore it does not come within the scope of that provision. (see paras 18, 21-23, 26, operative part)