Judgment of the Court (Fifth Chamber) of 8 March 2001 in Case C-415/98 (reference for a preliminary ruling from the Bundesfinanzhof): Laszlo Bakcsi v Finanzamt Fürstenfeldbruck (VAT — Articles 2(1), 5(6) and 11.A(1)(a) of the Sixth VAT Directive — Mixed-use goods — Incorporation into the private or business assets of a taxable person — Sale of a business asset — Second-hand item purchased from a private individual)
Date: 2001-06-16
Institutions: Court of Justice
Subjects: VAT, entrepreneur, interpretation of the law, private property, sale, tax relief

16.6.2001

EN

Official Journal of the European Communities

C 173/15

JUDGMENT OF THE COURT

(Fifth Chamber)

of 8 March 2001

in Case C-415/98 (reference for a preliminary ruling
from the Bundesfinanzhof): Laszlo Bakcsi v Finanzamt
Fürstenfeldbruck (1)

(VAT — Articles 2(1), 5(6) and 11.A(1)(a) of the Sixth VAT
Directive — Mixed-use goods — Incorporation into the
private or business assets of a taxable person — Sale of a
business asset — Second-hand item purchased from a private
individual)

person withdraws, such an item from his business, the value
added tax on that item must be considered not to be deductible
for the purposes of Article 5(6) of the Sixth Directive and no
tax may therefore be levied on that withdrawal under that
provision. If the taxable person subsequently sells the item, he
will be carrying out that transaction in a private capacity and
the transaction will therefore be excluded from the system of
value added tax.

(1) OJ C 20 of 23.1.1999.

(2001/C 173/24)

(Language of the case: German)

JUDGMENT OF THE COURT

of 8 March 2001

(Provisional translation; the definitive translation will be published
in the European Court Reports)

In Case C-415/98: reference to the Court under Article 177 of
the EC Treaty (now Article 234 EC) from the Bundesfinanzhof
(Federal Finance Court) (Germany) for a preliminary ruling in
the proceedings pending before that court between Laszlo
Bakcsi and Finanzamt Fürstenfeldbruck on the interpretation
of Sixth Council Directive 77/388/EEC of 17 May 1977 on
the harmonisation of the laws of the Member States relating
to turnover taxes — Common system of value added tax:
uniform basis of assessment (OJ 1977 L 145, p. 1) — the
Court (Fifth Chamber), composed of: D.A.O. Edward, acting as
President of the Fifth Chamber, P. Jann and L. Sevo´ n (Rappor-
teur), Judges; A. Saggio, Advocate General; L. Hewlett, Admin-
istrator, for the Registrar, has given a judgment on 8 March
2001, in which it has ruled:

1. A taxable person who acquires a capital item in order to use it
for both business and private purposes may retain it wholly
within his private assets and thereby exclude it entirely from the
system of value added tax.

2. Where a taxable person has chosen to incorporate wholly into
his business assets a capital item which he uses for both business
and private purposes, the sale of that item is subject in full to
value added tax,
in accordance with Articles 2(1) and
11.A(1)(a) of Sixth Council Directive 77/388/EEC of 17 May
1977 on the harmonisation of the laws of the Member States
relating to turnover taxes — Common system of value added
tax: uniform basis of assessment. Where a taxable person
assigns to his business assets only the part of the item used for
business purposes, only the sale of that part is subject to value
added tax. The fact that the item was purchased second-hand
from a non-taxable person and that the taxable person was
therefore not authorised to deduct the residual value added tax
on that item is irrelevant in this regard. However, if the taxable

in Case C-215/99 (reference for a preliminary ruling
from the Landesgericht Feldkirch): Friedrich Jauch v
Pensionsversicherungsanstalt der Arbeiter (1)

(Social security for migrant workers — Austrian scheme of
insurance against the risk of reliance on care — Classifi-
cation of benefits and lawfulness of the residence condition
from the point of view of Regulation (EEC) No 1408/71)

(2001/C 173/25)

(Language of the case: German)

(Provisional translation; the definitive translation will be published
in the European Court Reports)

In Case C-215/99: reference to the Court under Article 177 of
the EC Treaty (now Article 234 EC) from the Landesgericht
(Regional Court) Feldkirch, Austria for a preliminary ruling in
the proceedings pending before that court between Friedrich
Jauch and Pensionsversicherungsanstalt der Arbeiter — on
the interpretation of Articles 10a(1) and 19(1) of Council
Regulation (EEC) No 1408/71 of 14 June 1971 on the
application of social security schemes to employed persons, to
self-employed persons and to members of
their families
moving within the Community, as amended and updated by
Council Regulation (EC) No 118/97 of 2 December 1996 (OJ
1997 L 28, p. 1) — the Court, composed of: G.C. Rodrı´guez
Iglesias, President, C. Gulmann, A. La Pergola, M. Wathelet,
V. Skouris
(Presidents of Chambers), D.A.O. Edward,
J.-P. Puissochet (Rapporteur), P. Jann, L. Sevo´ n, R. Schintgen,
F. Macken, N. Colneric, S. von Bahr, J.N. Cunha Rodrigues and
C.W.A. Timmermans, Judges; S. Alber, Advocate General; H.A.
Rühl, Principal Administrator, for the Registrar, has given a
judgment on 8 March 2001, in which it has ruled: