Opinion of the Advocate General — ECLI:EU:C:1997:407
Date: 1997-09-16
Language of the case: English
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Reference for a preliminary ruling
Origin: United Kingdom

Summary of the J u d g m e n t 
1. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value 
added tax — Supply of services for consideration — Concept — Foreign exchange transactions 
— Included 
(Council Directive 77/388, Art. 2(1)) 
2. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value 
added tax — Taxable amount — Supply of services — Foreign exchange transactions — Tax­
able amount consisting of the overall result of the transactions of the supplier of the services 
over a given period of time 
(Council Directive 77/388, Art. 11A(l)(a)) 
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SUMMARY — CASE C-172/96 
1. Foreign exchange transactions, performed 
even without commission or direct fees, 
are supplies of services provided in return 
for consideration, that is to say supplies 
of services effected for consideration 
within the meaning of Article 2(1) of 
Sixth Directive 77/388 on the harmonisa­
tion of the laws of the Member States 
relating to turnover taxes. More particu­
larly, transactions between parties for the 
purchase by one party of an agreed 
amount in one currency against the sale 
by it to the other party of an agreed 
amount in another currency, both such 
amounts being deliverable on the same 
value date, and in respect of which trans­
actions the parties have agreed (whether 
orally, electronically or in writing) the 
currencies involved, the amounts of such 
currencies to be purchased and sold, 
which party will purchase which cur­
rency and the value date, constitute sup­
plies of services effected for consideration 
within the meaning of Article 2(1) of the 
Sixth Directive. 
2. Article 11A(l)(a) of Sixth Directive 
77/388 on the harmonisation of the laws 
of the Member States relating to turnover 
taxes must be construed as meaning that, 
in foreign exchange transactions in which 
no fees or commission are calculated with 
regard to certain specific transactions, the 
taxable amount is the overall result of the 
transactions of the supplier of the services 
over a given period of time. Article 
11A(1)(a) of the Sixth Directive provides 
that the taxable amount is, in respect of 
supplies of services, that which consti­
tutes the consideration which has been or 
is to be obtained by the supplier from the 
purchaser for such supplies. Determining 
the consideration comes down to deter­
mining what the bank in question 
receives for foreign exchange transactions, 
that is to say the remuneration on foreign 
exchange transactions which it can actu­
ally take for itself. 
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