Opinion of the Advocate General — ECLI:EU:C:2009:226
Date: 2009-04-02
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 Judgment Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Supply of services – Determination of the point of reference for tax purposes – Supply of services connected with immovable property (Council Directive 77/388, Art. 9(2)(a)) Article 9(2)(a) of Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes is to be interpreted as meaning that the place where services are supplied by an association whose business consists in organising the exchange between its members of their timeshare usage rights in holiday accommodation, in return for which that association receives from its members enrolment, annual subscription and exchange fees, is the place where the property in respect of which the member concerned holds timeshare usage rights is situated. It is difficult to establish the relationship between the association organising the exchange and its members without taking account of the purpose of that relationship. Furthermore, timeshare usage rights are rights in immovable property and their transfer in exchange for the enjoyment of similar rights constitutes a transaction connected with immovable property. An owner who wishes to exchange his timeshare usage right with that of another member enters into direct contact, not with the other member, but with the association which organises the exchange. What distinguishes that system from a simple rental from any travel agency is the fact that, under such a system, the person concerned pays not for the supply of a holiday, but for the service provided by that association in order to facilitate the exchange of his right relating to a particular property. It follows that the property with which the association’s services are connected is the property in which the owner who wishes to exchange has a right. Furthermore, the underlying logic of the provisions concerning the place where a service is supplied in Article 9 of the Sixth Directive requires that goods and services are taxed as far as possible in the place of consumption. In the context of the organisation of the exchange of timeshare usage rights in holiday accommodation, the services supplied are not consumed in the place where the association is established, but in the place where the immovable property in respect of which timeshare usage rights are exchanged is situated. As regards the enrolment, annual subscription and exchange fees, that property is the property in respect of which the member concerned has timeshare usage rights that he makes available in the exchange. (see paras 37-39, 41, 43, operative part)