Case C-184/04: Judgment of the Court (First Chamber) of  30 March 2006  (reference for a preliminary ruling from the Korkein hallinto-oikeus) — Uudenkaupungin kaupunki (VAT — Deduction of input tax — Capital goods — Immovable property — Adjustment of deductions)
Date: 2006-06-17
Institutions: Court of Justice
Subjects: Finland, VAT, intermediate goods, interpretation of the law, real property, tax law, tax relief, town

C 143/8

EN

Official Journal of the European Union

17.6.2006

Judgment of the Court (First Chamber) of 30 March 2006
(reference for a preliminary ruling from the Korkein
hallinto-oikeus) — Uudenkaupungin kaupunki

was not eligible for deduction and were then used in activity,
subject to value added tax during the adjustment period.

(Case C-184/04) (1)

(VAT — Deduction of input tax — Capital goods — Immo-
vable property — Adjustment of deductions)

(2006/C 143/15)

Language of the case: Finnish

3. The second subparagraph of Article 13(C) of Sixth Directive
77/388 must be interpreted as meaning that a Member State
which gives its taxable persons the right to opt for taxation of the
letting of a property is not permitted by that provision to exclude
deduction of value added tax on immovable property investments
made before that right of option is exercised, where the application
to exercise that option has not been made within six months of
the property being brought into use.

Referring court

Korkein hallinto-oikeus (Finland)

Parties to the main proceedings

Applicant: Uudenkaupungin kaupunki

Re:

Preliminary ruling — Korkein hallinto-oikeus — Interpretation
of the second subparagraph of Article 13(C), Article 17(6) and
Article 20 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) —
Deduction of input tax on immovable capital goods used in
connection with transactions for which the taxable person
subsequently opts to be taxable — National legislation under
which the right to deduct is subject to exercising the right of
option for taxation within six months from the bringing into
use of the property

Operative part of the judgment

1. Article 20 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, must be interpreted as meaning that,
subject
it requires
Member States to make provision for adjustment of deductions of
value added tax on capital goods.

to the provisions of Article 20(5)

thereof,

to opt

for taxation of

4. Article 17(6) of Sixth Directive 77/388 must be interpreted as
meaning that a Member State which gives its taxable persons the
the letting of a property is not
right
permitted by that provision to exclude deduction of value added
tax on immovable property investments made before that right of
option is exercised, where the application to exercise that option
the property being
has not been made within six months of
brought into use.

(1) OJ C 156 of 12.06.2004.

Judgment of the Court (Grand Chamber) of 2 May 2006 —
United Kingdom of Great Britain and Northern Ireland v
European Parliament and Council of the European Union

(Case C-217/04) (1)

(Regulation (EC) No 460/2004 — European Network and
Information Security Agency — Choice of legal basis)

(2006/C 143/16)

Language of the case: English

Parties

2. Article 20 of Sixth Directive 77/388 must be interpreted as
meaning that the adjustment provided for therein is also applicable
where the capital goods were first used in non-taxable activity that

Applicants: United Kingdom of Great Britain and Northern
Ireland (represented by: M. Bethell, Agent, and by Lord Gold-
smith, N. Paines and T. Ward, lawyers)