Judgment of the Court (Third Chamber) of  6 October 2005  in Case C-204/03: Commission of the European Communities v Kingdom of Spain (Failure of a Member State to fulfil its obligations — Articles 17 and 19 of the Sixth VAT Directive — Subsidies — Limitation of the right to deduct)
Date: 2005-11-26
Institutions: Court of Justice
Subjects: European Commission, Spain, VAT, action for failure to fulfil an obligation, goods and services, purchase, tax exemption

26.11.2005

EN

Official Journal of the European Union

C 296/1

I

(Information)

COURT OF JUSTICE

COURT OF JUSTICE

JUDGMENT OF THE COURT

2. Orders the Kingdom of Spain to pay the costs.

(Third Chamber)

(1) OJ C 226 of 20.09.2003.

of 6 October 2005

in Case C-204/03: Commission of the European Commu-
nities v Kingdom of Spain (1)

(Failure of a Member State to fulfil its obligations — Articles
17 and 19 of the Sixth VAT Directive — Subsidies —
Limitation of the right to deduct)

(2005/C 296/01)

(Language of the case: Spanish)

In Case C-204/03: Commission of the European Communities
(Agents: E. Traversa and L. Lozano Palacios) v Kingdom of
Spain (Agent: N. Díaz Abad) — action under Article 226 EC
for failure to fulfil obligations, brought on 14 May 2003 — the
Court (Third Chamber), composed of A. Rosas, President of the
Chamber, J.-P. Puissochet, S. von Bahr (Rapporteur), J. Male-
novský and U. Lõhmus, Judges; M. Poiares Maduro, Advocate
General; R. Grass, Registrar, gave a judgment on 6 October
2005, in which it:

JUDGMENT OF THE COURT

(Third Chamber)

of 22 September 2005

in Case C-221/03: Commission of the European Commu-
nities v Kingdom of Belgium (1)

(Failure of a Member State to fulfil obligations — Directive
91/676/EEC — Incomplete transposition — Protection of
water against pollution by nitrates from agricultural sources
— Failure to identify waters that are or could be affected by
pollution — Incorrect and inadequate designation of vulner-
able zones — Code of good agricultural practice — Inadequa-
cies — Action programme — Inadequacies and incomplete
application)

(2005/C 296/02)

(Language of the case: French)

1. Declares that, by providing for a deductible proportion of value
added tax for taxable persons who carry out only taxable transac-
tions, and by laying down a special rule which limits the right to
deduct VAT on the purchase of goods and services which are
subsidised, the Kingdom of Spain has failed to fulfil its obligations
under Community law, and, in particular, Articles 17(2) and (5)
and 19 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, as amended by Council Directive
95/7/EC of 10 April 1995;

In Case C-221/03, Commission of the European Communities
(Agents: G. Valero Jordana, assisted by M. van der Woude and
T. Chellingsworth) v Kingdom of Belgium (Agent: A. Snoecx,
and subsequently by E. Dominkovits,) — action under Article
226 EC for failure to fulfil obligations, brought on 22 May
2003 — the Court (Third Chamber), composed of A. Rosas,
President of the Chamber, A. Borg Barthet, S. von Bahr, J. Male-
novský and A. Ó Caoimh (Rapporteur), Judges; L.A. Geelhoed,
Advocate General; R. Grass, Registrar, gave a judgment on 22
September 2005, in which it: