Case C-277/05: Judgment of the Court (First Chamber) of 18 July 2007 (reference for a preliminary ruling from the Conseil d'État, France) — Société thermale d'Eugénie-les-Bains v Ministère de l'Économie, des Finances et de l'Industrie (VAT — Scope — Deposits, paid in the context of contracts relating to supplies of services subject to VAT, which are retained by the provider in the event of cancellation — Classification)
Date: 2007-09-08
Institutions: Court of Justice
Subjects: France, VAT, advance payment, hotel industry, interpretation of the law

8.9.2007

EN

Official Journal of the European Union

C 211/5

Judgment of the Court (First Chamber) of 18 July 2007
(reference for a preliminary ruling from the Conseil d'État,
France) — Société thermale d'Eugénie-les-Bains v Ministère
de l'Économie, des Finances et de l'Industrie

default and which has no direct connection with the supply of any
service for consideration and, as such, is not subject to that tax.

(Case C-277/05) (1)

(1) OJ C 229, 17.9.2005.

(VAT — Scope — Deposits, paid in the context of contracts
relating to supplies of services subject to VAT, which are
retained by the provider in the event of cancellation —
Classification)

(2007/C 211/07)

Language of the case: French

Referring court

Conseil d'État

Judgment of the Court (Third Chamber) of 18 July 2007 —
the European Communities v Hellenic
Commission of

Republic

(Case C-399/05) (1)

(Failure of a Member State to fulfil obligations — Directive
93/38/EC — Procurement in the water, energy, transport and
telecommunications sectors — Construction and bringing into
operation of a thermal power station — Conditions of admis-
sion to the tendering procedure)

(2007/C 211/08)

Language of the case: Greek

Parties to the main proceedings

Applicant: Société thermale d'Eugénie-les-Bains

Parties

Defendant: Ministère de l'Économie, des Finances et de l'Industrie

Re:

Reference for a preliminary ruling — Conseil d'Etat (France) —
Interpretation of Article 2(1) 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) — Scope — Deposits paid in the context of
contracts for supplies of services subject to value added tax,
which are retained by the service provider on cancellation —
Classification as remuneration for a reservation service or as a
cancellation payment.

Operative part of the judgment

Articles 2(1) and 6(1) 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 are to be interpreted as meaning that
a sum paid as a deposit, in the context of a contract relating to the
supply of hotel services which is subject to value added tax, is to be
regarded, where the client exercises the cancellation option available to
him and that sum is retained by the hotelier, as a fixed cancellation
charge paid as compensation for the loss suffered as a result of client

Applicant: Commission of the European Communities (repre-
sented by: M. Patakia and X. Lewis, acting as Agents)

Defendant: Hellenic Republic (represented by: D. Tsagkaraki and
V. Christianos, Agents)

Re:

Failure of a Member State to fulfil obligations — Infringement
of Article 4(2) of Council Directive 93/38/EEC of 14 June 1993
coordinating the procurement procedures of entities operating
in the water, energy, transport and telecommunications sectors
(OJ 1993 L 199, p. 84) — Admission of the tenders of two
companies not meeting the conditions of the notice to tender
or of the specification — Construction and bringing into opera-
tion of a thermal power station at Lavrio

Operative part of the judgment

The Court:

1. Dismisses the action;

2. Orders the Commission of the European Communities to pay the

costs.

(1) OJ C 22, 28.1.2006.