Case C-292/03: Action brought on 4 July 2003 by the Commission of the European Communities against the Republic of Finland
Date: 2003-09-06
Institutions: Court of Justice
Subjects: European Commission, Finland, action for failure to fulfil an obligation, environmental protection, metal waste, national implementing measure

C 213/18

EN

Official Journal of the European Union

6.9.2003

On a correct interpretation of article 26 of the Sixth Direc-
tive (1) on value added tax and of the judgment of the Court of
Justice in Cases C-308/96 and C-94/97 Madgett and Baldwin
[1998] ECR I-6229:

by the tour operator on seat-only sales in the financial year in
question or (b) the average revenue achieved by the tour
operator on seat-only sales in the financial year in question?

I.

In what,
if any, circumstances is it open to a tour
operator, which has completed its value added tax return
for a financial year using the actual cost method which
was the only method laid down in national legislation
implementing the Directive, subsequently to recalculate
its VAT liability partly in accordance with the market
value method described in paragraph 46 of that judg-
ment?

(1)

(2)

In particular may such a tour operator use the
market value selectively in relation to different
financial years, and if so, in what circumstances?

In a case where the tour operator sells some of the
in-house components of its packages to the public
on a non-package basis (in this case flights) but does
not sell other in-house components of some of its
packages to the public on a non-package basis
(in this case cruises and campsites) can the tour
operator:

(a)

(b)

use the market value method in relation to
those packages (being the vast majority) where
it can determine the value of all its in-house
supplies (in this case flights) by reference to
sales it has made to the public on a non-
package basis;

in cases where the package includes in-house
elements which the tour operator does not sell
to the public on a non-package basis (in this
case camp sites and cruises), can the tour
operator use the market value method to
determine the value of those in-house supplies
that it does sell to the public (in this case the
flights) where it has not been possible to
establish a market value for other parts of the
package.

(3) Must the use of the combination of methods be
(a) simpler or (b) significantly simpler or (c) not
significantly more complicated

(4) Must the market value method produce the same,
or a very similar, VAT liability as does the cost-
based method?

(1) Sixth Council Directive 77/388/EEC of 17 May 1977 on the
harmonization of the laws of the Member States relating to
turnover taxes — Common system of value added tax: uniform
basis of assessment (OJ L 145, 13.06.77, p. 1).

Action brought on 4 July 2003 by the Commission of the
European Communities against the Republic of Finland

(Case C-292/03)

(2003/C 213/31)

An action against the Republic of Finland was brought before
the Court of Justice of the European Communities on 4 July
2003 by the Commission of the European Communities,
represented by M. Konstantinidis and P. Aalto, with an address
for service in Luxembourg.

The Commission claims that the Court should:

1. Declare under Article 226 of the Treaty establishing the
European Union that, by failing to adopt
the laws,
regulations and administrative measures to comply with
Directive 2000/53/EC of the European Parliament and
of the Council of 18 September 2000 on end-of-life
vehicles (1) or in any event in failing to inform the
Commission thereof, the Republic of Finland has failed
to fulfil its obligations under that Directive;

2. Order the Republic of Finland to pay the costs of the

proceedings.

Pleas in law and main arguments

The time-limit for implementing the directive expired on
21 April 2002.

Is it possible in the circumstances of the present case to
identify that part of the in-house service relating to flights sold
as part of a holiday package by taking either (a) the average
cost of an airline seat increased by the average margin achieved

(1) OJ 2000 L 269, p. 34.