CELEX: 62016CN0164
Language: en
Date: 2016-03-21 00:00:00
Title: Case C-164/16: Reference for a preliminary ruling from Court of Appeal (England & Wales) (Civil Division) (United Kingdom) made on 21 March 2016 — Commissioners for Her Majesty's Revenue & Customs v Mercedes Benz Financial Services UK Ltd

30.5.2016   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 191/16
            
         Reference for a preliminary ruling from Court of Appeal (England & Wales) (Civil Division) (United Kingdom) made on 21 March 2016 — Commissioners for Her Majesty's Revenue & Customs v Mercedes Benz Financial Services UK Ltd
   (Case C-164/16)
   (2016/C 191/20)
   Language of the case: English
   
      Referring court
   
   Court of Appeal (England & Wales) (Civil Division)
   
      Parties to the main proceedings
   
   
      Applicant: Commissioners for Her Majesty's Revenue & Customs
   
      Defendant: Mercedes Benz Financial Services UK Ltd
   
      Questions referred
   
   
               1.
            
            
               What is the meaning of the words ‘a contract…which provides that in the normal course of events ownership is to pass at the latest upon payment of the final instalment’ in Article 14.2(b) (1)?
            
         
               2.
            
            
               In particular, in the context of the present case, does the phrase ‘in the normal course of events’ require a tax authority to do no more than to identify the existence of an option to purchase which can be exercised no later than upon payment of the final instalment?
            
         
               3.
            
            
               Alternatively, does the phrase ‘in the normal course of events’ require the national authority to go further and to determine the economic purpose of the contract?
            
         
               4.
            
            
               If the answer to (3) is yes:
               
                           a.
                        
                        
                           Should the interpretation of Article 14.2 be influenced by an analysis of whether the customer is likely to exercise such an option?
                        
                     
                           b.
                        
                        
                           Is the size of the price payable on exercise of the option to purchase relevant for the purposes of determining the economic purpose of the contract?
                        
                     
         
      (1)  Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.
   
      OJ L 347, p. 1