Opinion of the Advocate General — ECLI:EU:C:2000:651
Date: 2000-11-23
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Action for failure to fulfil obligations - successful
Origin: France

Summary of the Judgment 
Tax provisions — Harmonisation of laws — Turnover taxes — Common system of 
value added tax — Taxable amount — Service charges — Included 
(Council Directive 77/388, Arts 2(1) and 11A(1)(a)) 
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SUMMARY — CASE C-404/99 
A Member State which authorises, under 
certain conditions, the exclusion from the 
taxable amount for the purposes of value 
added tax of the compulsory price supple­
ments claimed by certain taxable persons 
by way of remuneration for the service 
provided ('service charges') is in breach of 
its obligations under Articles 2(1) and 
HA(1)(a) of the Sixth Directive 77/388 
on the harmonisation of the laws of the 
Member States relating to turnover taxes. 
The total sum demanded from the custo­
mer, or appearing on the bill presented to 
him, constitutes in its entirety the consid­
eration for the service supplied to him by 
the service provider. That consideration, 
which includes the service charge, is by 
definition expressed in money. 
(see paras 39, 52 and operative part) 
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