Case C-220/03: Action brought on 21 May 2003 by the European Central Bank against the Federal Republic of Germany
Date: 2003-08-23
Institutions: Court of Justice
Subjects: European Central Bank, Germany, VAT, action for failure to fulfil an obligation, property leasing, redemption

C 200/10

EN

Official Journal of the European Union

23.8.2003

Action brought on 21 May 2003 by the European Central
Bank against the Federal Republic of Germany

(Case C-220/03)

(2003/C 200/15)

An action against
the Federal Republic of Germany was
brought before the Court of Justice of the European Commu-
nities on 21 May 2003 by the European Central Bank, repre-
sented by Chiara Zilioli, Head of the Institutional Law Division
of the European Central Bank, Martin Benisch, Senior Legal
Counsel
the European
Central Bank, assisted by Hans-Georg Kamann and Martin
Selmeyr, with an address for service in Luxembourg.

in the Institutional Law Division of

The applicant claims that the Court should:

1. Declare that on a proper construction of Article 8(1) of
the Agreement between the Government of the Federal
Republic of Germany and the European Central Bank on
the seat of the European Central Bank (1), in conjunction
with Articles 3(2) and 23(1) of
the Protocol on the
privileges and immunities of the European Communities,
the Federal Republic of Germany is required to refund to
The European Central Bank all turnover tax included in
the price of goods and services bought or obtained by the
European Central Bank for use in its operations in so far
as the tax owed on those transactions exceeds,
in each
individual case, DEM 50 and has in fact been paid by the
European Central Bank. That duty to make a refund
covers
tax separately invoiced to the
European Central Bank as well as all other turnover tax,
which can be proved, or at least assumed, on the basis of
a rational economic assessment,
to be included in the
prices paid by the European Central Bank.

turnover

the

2. Declare that under Article 8(1) of the Agreement between
the Government of the Federal Republic of Germany and
the European Central Bank on the seat of the European
Central Bank, in conjunction with Articles 3(2) and 23(1)
of the Protocol on the privileges and immunities of the
European Communities, the Federal Republic of Germany
is obliged to refund to the European Central Bank the
following amounts of turnover tax:

(a)

EUR 7 678 347,62 for the turnover tax included in
property
payments
rental
Kaiserstraße 29 (Eurotower);

rental

the

for

(b)

(c)

(d)

EUR 33 255,23 for the turnover tax included in the
ancillary charges and costs paid in respect of
the
rental property Kaiserstraße 29 (Eurotower);

EUR 1 115 675,75 for the turnover tax included in
rental payments
rental property Neue
the
Mainzer Straße / Junghofstraße (Eurotheum);

for

EUR 1 892 434,00 for the turnover tax included in
payments for construction and planning services in
the construction of the rental property Neue Mainzer
Straße / Junghofstraße (Eurotheum).

3. Declare that

the Federal Republic of Germany is,

in
principle, also obliged to refund to the ECB the following
amounts of turnover tax:

(a)

the turnover tax included in the ancillary charges
the rental property
and costs paid in respect of
in so far as these are
Kaiserstraße 29 (Eurotower)
not included in point 2(b);

(b)

the turnover tax included in the ancillary charges
and costs paid in respect of the rental property Neue
Mainzer Straße/Junghofstraße (Eurotheum).

4. Order the Federal Republic of Germany to pay the costs

of the proceedings.

Pleas in law and main arguments

the Federal Republic of Germany has
The ECB alleges that
the
the Agreement on the seat of
infringed Article 8(1) of
the
in conjunction with Articles 3(2) and 23(1) of
ECB,
Protocol on the privileges and immunities of
the European
Communities of 8 April 1965 (2). Those provisions exempt the
ECB from the payment of all turnover tax included in the price
of goods and services used by the ECB in its operations.

Despite that exemption from turnover tax, which is directly
enshrined in European Community law, it can be proven that
the ECB is required to pay turnover tax indirectly in Germany
on the rent on properties for use in its operations and on the
associated services it receives, such as conversion and cleaning
services. The German tax authorities have as yet refused to
refund that proven indirect turnover tax charge.

(1) BGBl. 1998 II, p. 2744.
(2) OJ 1967 152, p. 13,

in the version of the Amsterdam Treaty of

2 October 1997, OJ 1997 C 340, p. 1.