CELEX: C2006/261/18
Language: en
Date: 2006-10-28 00:00:00
Title: Case C-309/06: Reference for a preliminary ruling from House of Lords (United Kingdom) made on 17 July 2006 — Marks & Spencer plc v Her Majesty's Commissioners of Customs and Excise

28.10.2006   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 261/10
            
         Reference for a preliminary ruling from House of Lords (United Kingdom) made on 17 July 2006 — Marks & Spencer plc v Her Majesty's Commissioners of Customs and Excise
   (Case C-309/06)
   (2006/C 261/18)
   Language of the case: English
   Referring court
   House of Lords
   Parties to the main proceedings
   
      Applicant: Marks & Spencer plc
   
      Defendant: Her Majesty's Commissioners of Customs and Excise
   Questions referred
   
               1.
            
            
               Where, under Article 28(2)(a) of the Sixth VAT Directive (1) (both before and after its amendment in 1992 by Directive 92/77), a Member State has maintained in its domestic VAT legislation an exemption with refund of input tax in respect of certain specified supplies, does a trader making such supplies have a directly enforceable Community law right to be taxed at a zero rate?
            
         
               2.
            
            
               If the answer to Question 1 is in the negative, where, under Article 28(2)(a) of the Sixth VAT Directive (both before and after its amendment in 1992 by Directive 92/77), a Member State has maintained in its domestic VAT legislation an exemption with refund of input tax in respect of certain specified supplies but has mistakenly interpreted its domestic legislation with the consequence that certain supplies benefiting from exemption with refund of input tax under its domestic legislation have been subject to tax at the standard rate, do the general principles of Community law, including fiscal neutrality, apply so as to give a trader who made such supplies a right to recover the sums mistakenly charged in respect of them?
            
         
               3.
            
            
               If the answer to Question 1 or Question 2 is in the affirmative, do the Community law principles of equal treatment and fiscal neutrality in principle apply with the result that they would be infringed if the trader in question is not repaid the entire amount mistakenly charged on the supplies made by him in circumstances where:
               
                           a)
                        
                        
                           the trader would be unjustly enriched by repayment to him of the entire amount;
                        
                     
                           b)
                        
                        
                           domestic legislation provides that overpaid tax cannot be repaid to the extent that repayment would lead to unjust enrichment of the trader; but
                        
                     
                           c)
                        
                        
                           domestic legislation makes no provision similar to that referred to in (ii) in the case of claims by ‘repayment traders’? (A ‘repayment trader’ is a taxable person who, in a given prescribed accounting period, makes no payment of VAT to the competent national authorities but receives a payment from them because, in that period, the amount of VAT that he is entitled to deduct exceeds the amount of VAT due in respect of supplies made by him.)
                        
                     
         
               4
            
            
               Is the answer to Question 3 affected by whether or not there is evidence that the difference of treatment between traders making claims for the repayment of overpaid output tax and traders making claims for additional amounts by way of input tax deduction (resulting from the over declaration of output tax) has, or has not, caused any financial loss or disadvantage to the former and, if so, how?
            
         
               5
            
            
               If, in the situation described in Question 3, the Community law principles of equal treatment and fiscal neutrality apply and would otherwise be infringed, does Community law require or permit a court to remedy the difference of treatment by upholding a trader's claim to a repayment of overpaid tax in such a way as to enrich him unjustly or require or permit a court to grant some other remedy (and, if so, which)?
            
         
      (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 (OJ L 145, p. 1)