Judgment — ECLI:EU:C:2007:634
Date: 2007-10-25
Language of the case: Italian
Court formation: Second Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Concepts: Leasing or letting of immovable property
Procedure: Reference for a preliminary ruling
Origin: Italy

Summary of the Judgment Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Exemptions provided for in the Sixth Directive (Council Directive 77/388, Art. 13B(b)) Article 13B(b) of the Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes must be interpreted as meaning that a legal relationship under which a person has been granted the right to occupy and use, including exclusively, public property, namely areas of State maritime property, for a specified period and against payment, is covered by the concept of ‘leasing or letting of immovable property’ within the meaning of that article. The fundamental characteristic of such a legal relationship, which it has in common with the leasing or letting of immovable property, consists in the provision of an area, that is, part of the State maritime property, in return for payment, together with the grant to the other contracting party of the right to occupy it or use it and to exclude all other persons from the enjoyment of that right. Consequently, observance of the principle of the neutrality of VAT and the requirement that the provisions of the Sixth Directive be applied consistently, in particular, those relating to exemptions, entail treating such a relationship in the same way as the leasing or letting of immovable property for the purposes of Article 13B(b) of that directive. (see paras 34-36, operative part)