CELEX: 62017CA0153
Language: en
Date: 2018-10-18 00:00:00
Title: Case C-153/17: Judgment of the Court (Sixth Chamber) of 18 October 2018 (request for a preliminary ruling from the Supreme Court of the United Kingdom) — Commissioners for Her Majesty’s Revenue and Customs v Volkswagen Financial Services (UK) Ltd (Reference for a preliminary ruling — Common system of value added tax (VAT) — Directive 2006/112/EC — Articles 168 and 173 — Deduction of input tax — Vehicle hire purchase transactions — Goods and services used for both taxable transactions and exempt transactions — Origin and scope of the right to deduct — Proportional deduction)

17.12.2018   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 455/10
            
         
      Judgment of the Court (Sixth Chamber) of 18 October 2018 (request for a preliminary ruling from the Supreme Court of the United Kingdom) — Commissioners for Her Majesty’s Revenue and Customs v Volkswagen Financial Services (UK) Ltd
      (Case C-153/17) (1)
      
      ((Reference for a preliminary ruling - Common system of value added tax (VAT) - Directive 2006/112/EC - Articles 168 and 173 - Deduction of input tax - Vehicle hire purchase transactions - Goods and services used for both taxable transactions and exempt transactions - Origin and scope of the right to deduct - Proportional deduction))
      (2018/C 455/16)
      Language of the case: English
      
         Referring court
      
      Supreme Court of the United Kingdom
      
         Parties to the main proceedings
      
      
         Applicant: Commissioners for Her Majesty’s Revenue and Customs
      
         Defendant: Volkswagen Financial Services (UK) Ltd
      
         Operative part of the judgment
      
      Article 168 and Article 173(2)(c) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax must be interpreted as meaning that, first, even where the general costs relating to supplies of moveable goods by hire purchase, such as the supplies at issue in the main proceedings, are passed on not in the amount due by the customer in respect of the supply of the goods concerned, that is to say the taxable part of the transaction, but in the amount of the interest due in respect of the ‘finance’ part of the transaction, that is to say the exempt part thereof, those general costs must nonetheless be considered, for the purposes of value added tax (VAT), to be a component of the price of that supply and, second, Member States may not apply a method of apportionment which does not take account of the initial value of the goods concerned when they are supplied, since that method is not capable of ensuring a more precise apportionment than that which would arise from the application of the turnover-based allocation key.
      
         (1)  OJ C 178, 6.6.2017.