CELEX: C2005/296/01
Language: en
Date: 2005-11-26 00:00:00
Title: Judgment of the Court (Third Chamber) of  6 October 2005  in Case C-204/03: Commission of the European Communities v Kingdom of Spain (Failure of a Member State to fulfil its obligations — Articles 17 and 19 of the Sixth VAT Directive — Subsidies — Limitation of the right to deduct)

26.11.2005   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 296/1
            
         
      JUDGMENT OF THE COURT
   
   (Third Chamber)
   of 6 October 2005
   in Case C-204/03: Commission of the European Communities v Kingdom of Spain (1)
   
   (Failure of a Member State to fulfil its obligations - Articles 17 and 19 of the Sixth VAT Directive - Subsidies - Limitation of the right to deduct)
   (2005/C 296/01)
   Language of the case: Spanish
   In Case C-204/03: Commission of the European Communities (Agents: E. Traversa and L. Lozano Palacios) v Kingdom of Spain (Agent: N. Díaz Abad) — action under Article 226 EC for failure to fulfil obligations, brought on 14 May 2003 — the Court (Third Chamber), composed of A. Rosas, President of the Chamber, J.-P. Puissochet, S. von Bahr (Rapporteur), J. Malenovský and U. Lõhmus, Judges; M. Poiares Maduro, Advocate General; R. Grass, Registrar, gave a judgment on 6 October 2005, in which it:
   
               1.
            
            
               Declares that, by providing for a deductible proportion of value added tax for taxable persons who carry out only taxable transactions, and by laying down a special rule which limits the right to deduct VAT on the purchase of goods and services which are subsidised, the Kingdom of Spain has failed to fulfil its obligations under Community law, and, in particular, Articles 17(2) and (5) and 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, as amended by Council Directive 95/7/EC of 10 April 1995;
            
         
               2.
            
            
               Orders the Kingdom of Spain to pay the costs.
            
         
      (1)  OJ C 226 of 20.09.2003.