Judgment — ECLI:EU:C:2005:324
Date: 2005-05-26
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: Common flat-rate scheme for farmers
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 – Common flat-rate scheme for farmers – Scope – Operations which are neither a supply of agricultural products nor a supply of agricultural services – Excluded – Supplies of agricultural services – Meaning – Grant of hunting licences – Excluded (Council Directive 77/388, Art. 25) Article 25 of Sixth Directive 77/388, which provides that where the application to farmers of the normal value added tax scheme, or the simplified scheme provided for in Article 24, would give rise to difficulties, Member States may apply to farmers a flat-rate scheme, is to be interpreted as meaning that that scheme applies only to the supply of agricultural products and agricultural services, as defined in Article 25(2), and that other operations carried out by flat-rate farmers are subject to the general scheme under that directive. In that regard, the fifth indent of Article 25(2) of the Directive, read together with Annex B thereto, is to be interpreted as meaning that the grant of hunting licences by a flat-rate farmer is not an agricultural service within the meaning of that directive. First of all, the grant of hunting licences is not expressly covered by those provisions, and nor does it fulfil the conditions laid down therein. Next, the common flat-rate scheme is an exception to the general scheme under the Sixth Directive and must therefore be applied only to the extent necessary to achieve its objective. Lastly, it would be contrary to the nature and purpose of that scheme to interpret the concept of ‘agricultural service’ as covering a licensing operation, such as the grant of hunting licences, which is not intended for agricultural purposes and which does not relate to equipment normally used in agricultural, forestry or fisheries undertakings. (see paras 21, 26-27, 29, 31, operative part 1-2)