Joined Cases C‑53/13 and C‑80/13

Strojírny Prostějov, a.s.

and

ACO Industries Tábor s.r.o.

v

Odvolací finanční ředitelství

(Requests for a preliminary ruling from the Krajský soud v Ostravě and the Nejvyšší správní soud)

‛Freedom to provide services — Temporary employment agency — Secondment of workers by an agency established in another Member State — Restriction — Undertaking using the workforce — Tax on the income of those workers withheld at source — Obligation — Payment to national budget — Obligation — Situation of workers seconded by a national agency — Absence of such obligations’

Summary — Judgment of the Court (First Chamber), 19 June 2014

Freedom to provide services — Restrictions — Tax legislation — Income tax — National legislation requiring the undertaking using the workforce to withhold at source the tax on the income of workers seconded by temporary employment agencies established in another Member State — Absence of such an obligation as regards workers seconded by a national undertaking — Not permissible

(Art. 56 TFEU)

Article 56 TFEU precludes legislation under which companies established in one Member State using workers employed and seconded by temporary employment agencies established in another Member State, but operating in the first Member State through a branch, are obliged to withhold tax and to pay to the first Member State an advance payment on the income tax due by those workers, whereas the same obligation is not imposed on companies established in the first Member State which use the services of temporary employment agencies established in that Member State.

The difference in treatment established by the legislation affects the right of recipients of services freely to choose cross-border services.

(see paras 40, 60, operative part)

Joined Cases C‑53/13 and C‑80/13

Strojírny Prostějov, a.s.

and

ACO Industries Tábor s.r.o.

v

Odvolací finanční ředitelství

(Requests for a preliminary ruling from the Krajský soud v Ostravě and the Nejvyšší správní soud)

‛Freedom to provide services — Temporary employment agency — Secondment of workers by an agency established in another Member State — Restriction — Undertaking using the workforce — Tax on the income of those workers withheld at source — Obligation — Payment to national budget — Obligation — Situation of workers seconded by a national agency — Absence of such obligations’

Summary — Judgment of the Court (First Chamber), 19 June 2014

Freedom to provide services — Restrictions — Tax legislation — Income tax — National legislation requiring the undertaking using the workforce to withhold at source the tax on the income of workers seconded by temporary employment agencies established in another Member State — Absence of such an obligation as regards workers seconded by a national undertaking — Not permissible

(Art. 56 TFEU)

Article 56 TFEU precludes legislation under which companies established in one Member State using workers employed and seconded by temporary employment agencies established in another Member State, but operating in the first Member State through a branch, are obliged to withhold tax and to pay to the first Member State an advance payment on the income tax due by those workers, whereas the same obligation is not imposed on companies established in the first Member State which use the services of temporary employment agencies established in that Member State.

The difference in treatment established by the legislation affects the right of recipients of services freely to choose cross-border services.

(see paras 40, 60, operative part)