Case C‑114/14

European Commission

v

Kingdom of Sweden

‛Failure of a Member State to fulfil obligations — Value added tax — Sixth Directive 77/388/EEC — Directive 2006/112/EC — Articles 132(1)(a) and 135(1)(h) — Exemptions — Public postal services — Postage stamps — Directive 97/67/CE’

Summary — Judgment of the Court (Grand Chamber), 21 April 2015

Harmonisation of fiscal legislation — Common system of value added tax — Exemptions — Exemptions for certain activities in the public interest — Supply by the public postal services of services and supply of goods incidental thereto — Supply of postage stamps valid for use for postal services — National legislation excluding exemption from value added tax for such supplies — Not permissible

(European Parliament and Council Directive 97/67, Arts 3(1) and 4; Council Directive 2006/112, Arts 132(1)(a) and 135(1)(h))

A Member State which fails to exempt from value added tax the supply by the public postal services of services other than passenger transport and telecommunications services, and the supply of goods incidental thereto, and the supply at face value of postage stamps valid for use for postal services within national territory, fails to fulfil its obligations under Articles 132(1)(a) and 135(1)(h) of Directive 2006/112 on the common system of value added tax.

It makes no difference that the Member State no longer has a public postal service within the meaning of Directive 2006/112 and that in its territory supplies of goods and services incidental thereto by all postal suppliers are subject to value added tax. The term ‘public postal services’ in Article 132(1)(a) of Directive 2006/112 covers operators, whether they are public or private, who undertake to provide in a Member State all or part of the universal postal service within the meaning of Directive 97/67. Where a private operator provides all or part of that universal postal service, it must be classified as a ‘public postal service’ within the meaning of that provision.

(see paras 27, 28, 31, 45, operative part)

Case C‑114/14

European Commission

v

Kingdom of Sweden

‛Failure of a Member State to fulfil obligations — Value added tax — Sixth Directive 77/388/EEC — Directive 2006/112/EC — Articles 132(1)(a) and 135(1)(h) — Exemptions — Public postal services — Postage stamps — Directive 97/67/CE’

Summary — Judgment of the Court (Grand Chamber), 21 April 2015

Harmonisation of fiscal legislation — Common system of value added tax — Exemptions — Exemptions for certain activities in the public interest — Supply by the public postal services of services and supply of goods incidental thereto — Supply of postage stamps valid for use for postal services — National legislation excluding exemption from value added tax for such supplies — Not permissible

(European Parliament and Council Directive 97/67, Arts 3(1) and 4; Council Directive 2006/112, Arts 132(1)(a) and 135(1)(h))

A Member State which fails to exempt from value added tax the supply by the public postal services of services other than passenger transport and telecommunications services, and the supply of goods incidental thereto, and the supply at face value of postage stamps valid for use for postal services within national territory, fails to fulfil its obligations under Articles 132(1)(a) and 135(1)(h) of Directive 2006/112 on the common system of value added tax.

It makes no difference that the Member State no longer has a public postal service within the meaning of Directive 2006/112 and that in its territory supplies of goods and services incidental thereto by all postal suppliers are subject to value added tax. The term ‘public postal services’ in Article 132(1)(a) of Directive 2006/112 covers operators, whether they are public or private, who undertake to provide in a Member State all or part of the universal postal service within the meaning of Directive 97/67. Where a private operator provides all or part of that universal postal service, it must be classified as a ‘public postal service’ within the meaning of that provision.

(see paras 27, 28, 31, 45, operative part)