Case C-246/08: Action brought on 3 June 2008 — Commission of the European Communities v Republic of Finland
Date: 2008-06-03
Institutions: Court of Justice
Subjects: European Commission, Finland, VAT, action for failure to fulfil an obligation, legal adviser, legal aid, public institution, tax exemption

15.8.2008

EN

Official Journal of the European Union

C 209/29

that establishment, must be able to use the normal deduction
mechanism provided for in the Sixth Directive, even if some
commercial transactions are effected directly from the place in
which that person is principally established.

(1) OJ 1979 L 331, p. 11.
(2) OJ 1986 L 326, p. 40.
(3) OJ 1977 L 145, p. 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.

Action brought on 3 June 2008 — Commission of the
European Communities v Republic of Finland

(Case C-246/08)

(2008/C 209/43)

Language of the case: Finnish

the first subparagraph of Article 4(5) of the Sixth VAT Directive.
Those services are clearly free from value added tax where they
are provided without charge. If, on the other hand, the recipient
of legal aid pays a fee for the service, services provided by a
State legal aid office cannot be regarded as free from value
added tax.

The second subparagraph of Article 4(5) of the VAT Directive
provides that bodies governed by public law are to be regarded
as taxable persons in respect of the activities in which they
engage as public authorities if treating them differently would
lead to significant distortions of competition. Even if the State
legal aid offices were regarded as acting as public authorities in
this respect, the Commission considers that excluding them
from liability to tax in the above cases would lead to significant
distortions of competition. For that reason they should be
regarded as taxable persons with respect to value added tax.

(1) Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmo-
nisation 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).

Parties

Action brought on 9 June 2008 — Commission of the
European Communities v Hellenic Republic

Applicant: Commission of the European Communities (repre-
sented by P. Aalto and D. Triantafyllou, acting as Agents)

Defendant: Republic of Finland

Form of order sought

— declare that, by failing to charge value added tax on legal
advice services provided in return for part payment
in
accordance with the legal aid provisions by State legal aid
offices (by public legal advisers acting as their employees),
while the corresponding services provided by private advi-
sers are subject to value added tax, the Republic of Finland
has failed to fulfil its obligations under Articles 2(1) and 4(1),
(2) and (5) of the Sixth VAT Directive 77/388/EEC (1);

(Case C-248/08)

(2008/C 209/44)

Language of the case: Greek

Parties

Applicant: Commission of the European Communities (repre-
sented by: E. Tserepa-Lacombe and A. Markoulli)

— order the Republic of Finland to pay the costs.

Defendant: Hellenic Republic

Pleas in law and main arguments

In Finland a recipient of legal aid may choose a public legal
adviser or a private adviser to represent him in legal proceed-
ings. In that situation the services provided by a public legal
adviser in return for part payment are not subject to value
added tax, whereas value added tax is charged on the services
provided by a private adviser in return for part payment. The
Commission considers that this is a case of different value
added tax treatment of the same services, with effects on the
Community's own resources.

Form of order sought

The Court is asked to:

— declare that the Hellenic Republic has failed to fulfil

its
obligations under Article 4(2)(a) and (c), Article 5(2)(c),
Article 6(2)(b) and Articles 10, 11, 12, 13, 14, 15, 17, 18
and 26 of Regulation (EC) No 1774/2002 (1) of the Euro-
pean Parliament and of the Council of 3 October 2002
laying down health rules concerning animal by-products not
intended for human consumption;

The Commission argues that the services provided by State legal
aid offices in legal proceedings do not fall within the scope of

— order the Hellenic Republic to pay the costs.