Case C-228/05: Judgment of the Court (Third Chamber) of 14 September 2006 (reference for a preliminary ruling from the Commissione tributaria di primo grado di Trento — Italy) — Stradasfalti Srl v Agenzia delle Entrate — Ufficio di Trento (Sixth VAT Directive — Articles 17(7) and 29 — Right to deduct input VAT)
Date: 2006-11-18
Institutions: Court of Justice
Subjects: VAT, approximation of laws, basis of tax assessment, goods and services, interpretation of the law, provision of services, tax exemption

18.11.2006

EN

Official Journal of the European Union

C 281/15

Operative part of the judgment

Re:

1. By making registration with the competent national authorities
subject to a prior language test for lawyers who have obtained
their qualification in a Member State other than the Grand Duchy
of Luxembourg and who wish to practise under their home-
country professional title in the latter Member State, by prohi-
biting those lawyers from being persons authorised to accept
service on behalf of companies, and by requiring them to produce
each year a certificate of registration with the competent authority
of their home Member State, the Grand Duchy of Luxembourg
has failed to fulfil its obligations under Directive 98/5/EC of the
European Parliament and of the Council of 16 February 1998 to
facilitate practice of the profession of lawyer on a permanent basis
in a Member State other than that in which the qualification was
obtained.

2. The Grand Duchy of Luxembourg is ordered to pay the costs.

(1) OJ C 155, 25.6.2005.

Judgment of the Court (Third Chamber) of 14 September
2006 (reference for a preliminary ruling from the Commis-
sione tributaria di primo grado di Trento — Italy) — Stra-
dasfalti Srl v Agenzia delle Entrate — Ufficio di Trento

(Case C-228/05) (1)

(Sixth VAT Directive — Articles 17(7) and 29 — Right to
deduct input VAT)

(2006/C 281/23)

Language of the case: Italian

Referring court

Commissione tributaria di primo grado di Trento

Parties to the main proceedings

Applicant: Stradasfalti Srl

Defendant: Agenzia delle Entrate — Ufficio di Trento

Reference for a preliminary ruling — Commissione tributaria
di primo grado di Trento — Interpretation of Articles 17(7)
and 29 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) — Right to
deduct VAT on inputs — National provision restricting the
right to deduct without consulting the committee provided for
under Article 29 of the directive

Operative part of the judgment

The Court rules:

1. The first sentence 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
requires the Member
States, in order to respect the procedural obligation of consultation
laid down by Article 29 of that directive, to inform the Advisory
Committee on value added tax established by that article that they
intend to adopt a national measure derogating from the general
system of deducting value added tax and to provide that committee
with sufficient information to enable it to examine the measure in
full knowledge of the facts.

2. The first sentence of Article 7(7) of the Sixth Directive 77/388
must be interpreted as not authorising a Member State to exclude
goods from the system of deducting value added tax without first
consulting the Advisory Committee on value added tax established
by Article 29 of that directive. Nor does that provision authorise a
Member State to adopt measures excluding goods from the system
of deducting that tax which contain no indication as to their
limitation in time and/or which form part of a body of structural
adjustment measures whose aim is to reduce the budget deficit and
allow State debt to be repaid.

3. In so far as an exception from the system of deductions has not
been established in accordance with Article 17(7) of the Sixth
Directive, the national tax authorities may not rely as against a
taxable person on a provision derogating from the principle of the
right to deduct value added tax set out in Article 17(1) of that
directive. A taxable person which has been subject to that dero-
gating provision must be able to recalculate its value added tax
debt
the Sixth Directive
77/388, in so far as the goods and services have been used for the
purposes of taxable transactions.

in accordance with Article 17(2) of

(1) OJ C 193, 6. 8. 2005.