CELEX: 62011CA0025
Language: en
Date: 2012-02-16 00:00:00
Title: Case C-25/11: Judgment of the Court (Eighth Chamber) of 16 February 2012 (reference for a preliminary ruling from the Supremo Tribunal Administrativo — Portugal) — Varzim Sol — Turismo, Jogo e Animação SA v Fazenda Pública (Taxation — Sixth VAT Directive — Deduction of input tax — Article 17(2) and (5) and Article 19 — ‘Subsidies’ used for the purchase of goods and services — Restriction of the right to deduct)

31.3.2012   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 98/9
            
         Judgment of the Court (Eighth Chamber) of 16 February 2012 (reference for a preliminary ruling from the Supremo Tribunal Administrativo — Portugal) — Varzim Sol — Turismo, Jogo e Animação SA v Fazenda Pública
   (Case C-25/11) (1)
   
   (Taxation - Sixth VAT Directive - Deduction of input tax - Article 17(2) and (5) and Article 19 - ‘Subsidies’ used for the purchase of goods and services - Restriction of the right to deduct)
   2012/C 98/11
   Language of the case: Portuguese
   
      Referring court
   
   Supremo Tribunal Administrativo
   
      Parties to the main proceedings
   
   
      Applicant: Varzim Sol — Turismo, Jogo e Animação SA
   
      Defendant: Fazenda Pública
   
      Re:
   
   Reference for a preliminary ruling — Supremo Tribunal Administrativo — Interpretation of Article 17(2) and (5) and Article 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 (OJ 1977 L 145, p. 1) — Deduction of input tax — Restriction of the right to deduct
   
      Operative part of the judgment
   
   Article 17(2) and (5) and Article 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, must be interpreted as precluding a Member State, where it authorises mixed taxable persons to make the deduction provided for in those provisions on the basis of the use of all or part of the goods and services, from calculating the deductible amount, for sectors in which such taxable persons carry out taxable transactions only, by including untaxed ‘subsidies’ in the denominator of the fraction used to determine the deductible proportion.
   
      (1)  OJ C 103, 2.4.2011.