CELEX: C2000/273/03
Language: en
Date: 2000-09-23 00:00:00
Title: Judgment of the Court (Sixth Chamber) of 8 June 2000 in Case C-396/98 (reference for a preliminary ruling from the Bundesfinanzhof): Grundstückgemeinschaft Schloßstraße GbR v Finanzamt Paderborn (Turnover taxes — Common system of value added tax — Article 17 of the Sixth Directive 77/388/EEC — Deduction of input tax — Deduction precluded by an amendment to national legislation removing the possibility of opting for taxation of the letting of immovable property)

C 273/2                  EN                     Official Journal of the European Communities                                          23.9.2000
                  JUDGMENT OF THE COURT                                                      JUDGMENT OF THE COURT
                           (Fifth Chamber)                                                            (Sixth Chamber)
                                                                                                        of 8 June 2000
                            of 8 June 2000
                                                                           in Case C-396/98 (reference for a preliminary ruling from
in Case C-375/98 (reference for a preliminary ruling                       the Bundesfinanzhof): Grundstückgemeinschaft Schloß-
from the Supremo Tribunal Administrativo): Ministério                                  straße GbR v Finanzamt Paderborn (1)
    Público and Fazenda Pública v Epson Europe BV (1)
                                                                           (Turnover taxes — Common system of value added tax —
(Harmonisation of tax laws — Parent companies and                          Article 17 of the Sixth Directive 77/388/EEC — Deduction
subsidiaries — Exemption, in the Member State of the                       of input tax — Deduction precluded by an amendment to
subsidiary, from withholding tax on profits distributed by                 national legislation removing the possibility of opting for
              the subsidiary to the parent company)                                 taxation of the letting of immovable property)
                           (2000/C 273/02)                                                             (2000/C 273/03)
                                                                                               (Language of the Case: German)
                  (Language of the case: Portuguese)
                                                                           (Provisional translation; the definitive translation will be published
(Provisional translation; the definitive translation will be published                          in the European Court Reports)
                    in the European Court Reports)
                                                                           In Case C-396/98: reference to the Court under Article 177 of
In Case C-375/98: reference to the Court under Article 177 of              the EC Treaty (now Article 234 EC) by the Bundesfinanzhof
                                                                           (Germany), for a preliminary ruling in the proceedings pending
the EC Treaty (now Article 234 EC) from the Supremo Tribunal
                                                                           before that court between Grundstückgemeinschaft Schloß-
Administrativo, Portugal, for a preliminary ruling in the
proceedings pending before that court between Ministério                   straße GbR and Finanzamt Paderborn — on the interpretation
                                                                           of Article 17 of the Sixth Council Directive (77/388/EEC) of
Público, Fazenda Pública and Epson Europe BV — on the
                                                                           17 May 1977 on the harmonisation of the laws of the Member
interpretation of Article 5(4) of Council Directive 90/435/EEC
of 23 July 1990 on the common system of taxation applicable                States relating to turnover taxes — Common system of value
                                                                           added tax: uniform basis of assessment (OJ 1977 L 145, p. 1)
in the case of parent companies and subsidiaries of different
                                                                           — the Court (Sixth Chamber), composed of: J. C. Moitinho de
Member States (OJ 1990 L 225, p. 6) — the Court (Fifth
Chamber), composed of: D. A. O. Edward, President of the                   Almeida (Rapporteur), President of the Chamber, R Schintgen,
                                                                           G. Hirsch, V. Skouris and F. Macken, Judges; D. Ruiz-Jarabo
Chamber, L. Sevón, P. J. G. Kapteyn, P. Jann (Rapporteur) and
M. Wathelet, Judges; G. Cosmas, Advocate General; H. A. Rühl,              Colomer, Advocate General; H. von Holstein, Deputy Registrar,
Principal Administrator, for the Registrar, has given a judgment           for the Registrar, has given a judgement on 8 June 2000 in
                                                                           which it has ruled:
on 8 June 2000, in which it has ruled:
                                                                           Article 17 of the Sixth Council Directive 77/388/EEC of 17 May
Article 5(4) of Council Directive 90/435/EEC of 23 July 1990 on            1977 on the harmonisation of the laws of the Member States
the common system of taxation applicable in the case of parent             relating to turnover taxes — Common system of value added tax:
companies and subsidiaries of different Member States, in so far as it     uniform basis of assessment must be interpreted as meaning that a
limits to 15 % and 10 % the amount of the withholding tax on               taxable person’s right to deduct VAT paid in respect of goods or
profits distributed by subsidiaries established in Portugal to their       services supplied to him with a view to his carrying out certain letting
parent companies in other Member States, must be interpreted as            operations is retained where a legislative amendment post-dating the
meaning that that derogation relates not only to corporation tax but       supply of those goods or services but pre-dating the commencement
also to any taxation, of whatever nature or however described, which       of such operations deprives the taxable person concerned of the right
takes the form of a withholding tax on dividends distributed by such       to waive exemption thereof, even if the VAT was assessed subject to
subsidiaries.                                                              subsequent review.
(1) OJ C 378 of 5.12.1998.                                                 (1) OJ C 1 of 4.1.1999.