Opinion of the Advocate General — ECLI:EU:C:2005:148
Date: 2005-03-10
Language of the case: French
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 – Deduction of input tax – Limitations on the right to deduct – National legislation limiting the deductibility of tax on the purchase of capital goods financed by subsidies – Not permissible (Council Directive 77/388, Arts 17 and 19) A Member State which introduces a special rule limiting the deductibility of value added tax on the purchase of capital goods where they were financed by subsidies fails to fulfil its obligations under Community law, and, in particular, under Articles 17 and 19 of Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes. (see para. 37, operative part)