Judgment of the Court (Tenth Chamber) of 21 March 2013 — Commission v France

(Case C-197/12)

‛Failure of a Member State to fulfil obligations — Taxation — VAT — Directive 2006/112/EC — Article 148 — Exemption of certain transactions intended for vessels carrying passengers for reward or used for the purpose of commercial activities — Condition that the vessels must be used for navigation on the high seas’

1. Actions for failure to fulfil obligations — Examination of the merits by the Court — Situation to be taken into consideration — Situation on expiry of the period laid down in the reasoned opinion — Subsequent amendment of the national legislation — Adaptation of the complaints — Lawfulness — Conditions (Art. 258 TFEU) (see paras 26-28)

2. Harmonisation of fiscal legislation — Common system of value added tax — Exemptions — Exemption of certain transactions intended for vessels carrying passengers for reward or used for the purpose of commercial activities — Condition that the vessels must be used for navigation on the high seas — National legislation which does not make the exemption of the transactions concerned subject to the requirement that the vessels be used for navigation on the high seas — Failure to fulfil obligations (Council Directive 2006/112, Art. 148(a) to (d)) (see paras 30-34, 36, operative part)

Re:

Failure of a Member State to fulfil obligations — Breach of Article 148(a), (c) and (d) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1) — Exemption of certain transactions intended for vessels carrying passengers for reward or used for the purpose of commercial activities — Condition that the vessels must be used for navigation on the high seas — Compatibility of a national measure which impermissibly extends the exemptions provided for by the directive.

Operative part

The Court:

1. Declares that, by not making the exemption from value added tax of transactions referred to in Article 262, Part II(2), (3), (6) and (7), of the Code général des impôts conditional on the requirement of use for navigation on the high seas, in respect of vessels carrying passengers for reward and those used for the purpose of commercial activities, the French Republic has failed to fulfil its obligations under Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, in particular Article 148(a), (c) and (d) thereof;

2. Orders the French Republic to pay the costs.

Judgment of the Court (Tenth Chamber) of 21 March 2013 — Commission v France

(Case C-197/12)

‛Failure of a Member State to fulfil obligations — Taxation — VAT — Directive 2006/112/EC — Article 148 — Exemption of certain transactions intended for vessels carrying passengers for reward or used for the purpose of commercial activities — Condition that the vessels must be used for navigation on the high seas’

1. Actions for failure to fulfil obligations — Examination of the merits by the Court — Situation to be taken into consideration — Situation on expiry of the period laid down in the reasoned opinion — Subsequent amendment of the national legislation — Adaptation of the complaints — Lawfulness — Conditions (Art. 258 TFEU) (see paras 26-28)

2. Harmonisation of fiscal legislation — Common system of value added tax — Exemptions — Exemption of certain transactions intended for vessels carrying passengers for reward or used for the purpose of commercial activities — Condition that the vessels must be used for navigation on the high seas — National legislation which does not make the exemption of the transactions concerned subject to the requirement that the vessels be used for navigation on the high seas — Failure to fulfil obligations (Council Directive 2006/112, Art. 148(a) to (d)) (see paras 30-34, 36, operative part)

Re:

Failure of a Member State to fulfil obligations — Breach of Article 148(a), (c) and (d) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1) — Exemption of certain transactions intended for vessels carrying passengers for reward or used for the purpose of commercial activities — Condition that the vessels must be used for navigation on the high seas — Compatibility of a national measure which impermissibly extends the exemptions provided for by the directive.

Operative part

The Court:

1. Declares that, by not making the exemption from value added tax of transactions referred to in Article 262, Part II(2), (3), (6) and (7), of the Code général des impôts conditional on the requirement of use for navigation on the high seas, in respect of vessels carrying passengers for reward and those used for the purpose of commercial activities, the French Republic has failed to fulfil its obligations under Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, in particular Article 148(a), (c) and (d) thereof;