Finanzamt Rendsbug v Detlev Harbs.
Date: 2004-07-15
27. First of all, it should be observed that Article 25(1) of the Sixth Directive confers on the Member States the right to apply a common flat-rate scheme to farmers where the application to them of the normal VAT scheme, or the simplified scheme provided for in Article 24 of that directive, would give rise to difficulties. That special scheme, which is applicable to certain farmers, is therefore an exception to the general scheme provided for in the Sixth Directive. That it is an exception is, as the Advocate General stated in point 31 of his Opinion, confirmed by the fact that, under Article 25(9) and (10), the Member States may exclude from that scheme certain categories of farmer and that any flat-rate farmer is entitled to opt for application of the normal scheme or the simplified scheme. Like the other special schemes provided for in Articles 24 and 26 of the Sixth Directive, the scheme under Article 25 must therefore be applied only to the extent necessary to achieve its objective (see, in respect of the application of the scheme provided for in Article 26 of the Sixth Directive, Madgett and Baldwin , cited above, paragraph 34). Moreover, it is settled case-law that any exception to a general rule is to be interpreted strictly (Case C-83/99 Commission  v Spain  [2001] ECR I-445, paragraph 19).
28. It should also be observed that, in determining the scope of a provision of Community law, its wording, context and objectives must all be taken into account (Case C‑162/91 Tenuta il Bosco  [1992] ECR I‑5279, paragraph 11, and Case C‑315/00 Maierhofer  [2003] ECR I‑563, paragraph 27). Moreover, the need for uniform application of Community law and the principle of equality require that the terms of a provision of Community law which makes no express reference to the law of the Member States for the purpose of determining its meaning and scope must normally be given an autonomous and uniform interpretation throughout the Community; that interpretation must take into account the context of the provision and the purpose of the legislation in question (see, inter alia, Case 327/82 Ekro  [1984] ECR 107, paragraph 11; Case C-287/98 Linster  [2000] ECR I-6917, paragraph 43; Case C-357/98 Yiadom  [2000] ECR I-9265, paragraph 26; Case C‑373/00 Adolf Truley  [2003] ECR I‑1931, paragraph 35; and Case C‑497/01 Zita Modes  [2003] ECR I‑0000, paragraph 34).
29. According to Article 25 of the Sixth Directive, the common flat-rate scheme aims to offset the tax charged on purchases of goods and services made by farmers by way of a flat-rate compensation payment to farmers who carry on their activity in an agricultural, forestry or fisheries undertaking when they supply agricultural products or provide agricultural services. That compensation is calculated by applying a percentage, which has been fixed by the Member States, to the price, excluding tax, of the goods or services supplied by the flat-rate farmer to a taxable purchaser of goods or recipient of services other than a flat-rate farmer. It is paid either by the public authorities or by the taxable purchaser or recipient and excludes any other form of deduction of input VAT.
31. The Community legislature thus did not intend to make application of the scheme dependent on satisfaction of a sole criterion, namely the formal status of farmer, but reserved such application to farmers whose situation is covered by all the provisions of Article 25 of the Sixth Directive. Accordingly, the mere fact that a person is a farmer does not mean that he is entitled to have solely that scheme applied to him, irrespective of the nature of the economic transactions effected by him.
36. Therefore, such letting does not fall within the scope of the common flat-rate scheme for farmers. The turnover from that activity cannot, therefore, be taxed under the special scheme provided for in Article 25 of the Sixth Directive, even if the farmer concerned continues to rear stock on the rest of his land, and, consequently, it falls within the scope of the normal VAT scheme or, where appropriate, the simplified scheme. Moreover, pursuant to Article 25(10) of the Sixth Directive, the farmer concerned may opt for the normal scheme or, where appropriate, the simplified scheme in respect of all of his activities.