Opinion of the Advocate General — ECLI:EU:C:2002:574
Date: 2002-10-10
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Action for failure to fulfil obligations - unfounded
Origin: France

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 — Supply of natural gas and electricity — Selective application of the 
reduced rate to a particular aspect of the supply — Whether permissible 
(Council Directive 77/388, Art. 12(3)(b)) 
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SUMMARY — CASE C-384/01 
There is no th ing in the text of 
Article 12(3)(b) of the Sixth Directive 
77/388, as amended by Directive 96/95, 
which permits the charging of a reduced 
rate of value added tax on supplies of 
natural gas and electricity, which requires 
that provision to be interpreted as requiring 
that the reduced rate can only be charged if 
it is applied to all supplies of natural gas 
and electricity. A selective application of 
the reduced rate to concrete and specific 
aspects, such as the standing charge con­
ferring entitlement to a minimum quantity 
of electricity for account holders, cannot be 
excluded, provided that no risk of distor­
tion of competition exists. 
(see paras 24, 26-28) 
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