Opinion of the Advocate General — ECLI:EU:C:2014:321
Date: 2014-05-14
Language of the case: Finnish
Subject matter: Taxation;Value added tax
Procedure: Reference for a preliminary ruling
Origin: Finland

Summary — Judgment of the Court (Third Chamber), 11 September 2014 1. Harmonisation of fiscal legislation — Common system of value added tax — Discretionary power of the Member States to apply a reduced rate to certain supplies of goods and services — Supply of books — Principle of fiscal neutrality — Similar products — Concept — Interpretation — Point of view of a typical consumer — Included (Council Directive 2006/112) 2. Harmonisation of fiscal legislation — Common system of value added tax — Discretionary power of the Member States to apply a reduced rate to certain supplies of goods and services — Supply of books — Principle of fiscal neutrality — Application of a reduced rate solely to books published on paper– Lawfulness (Council Directive 2006/112, Art. 98(2), first subpara., and Annex III, point 6) 1. To determine whether goods or services are similar, account must be taken primarily of the point of view of a typical consumer. Goods or services are similar where they have similar characteristics and meet the same needs from the point of view of consumers, the test being whether their use is comparable, and where the differences between them do not have a significant influence on the decision of the average consumer to use one or other of those goods or services. As the average consumer’s assessment is liable to vary according to the different degree of penetration of new technologies in each national market and the degree of access to the technical equipment enabling the consumer to make use of books published on physical supports other than paper, it is the average consumer in each Member State who must be taken as a reference. In those circumstances, it is for the referring court to ascertain whether books published in paper form and books published on other physical supports are goods which are liable to be regarded by the average consumer as similar. For that purpose, it will have to assess whether those books have similar characteristics and meet the same needs, using the criterion of whether their use is comparable, in order to ascertain whether or not the differences between them have a significant or tangible influence on the average consumer’s decision to choose one or other of those books. (see paras 25, 30, 31) 2. The first subparagraph of Article 98(2) of and point 6 of Annex III to Directive 2006/112 on the common system of value added tax, as amended by Directive 2009/47, must be interpreted as not precluding, provided that the principle of fiscal neutrality inherent in the common system of value added tax is complied with, which is for the referring court to ascertain, national legislation under which books published in paper form are subject to a reduced rate of value added tax and books published on other physical supports such as CDs, CD-ROMs or USB keys are subject to the standard rate of value added tax. (see para. 34, operative part)