(March 5, 2015)
On March 5, 2015 the Court of Justice of the European Union (CJEU) has ruled in the cases C-479/13 the European Commission versus the French Republic (ECLI:EU:C:2015:141) and in the case C-502/13 The European Commission versus the Grand Duchy of Luxembourg (ECLI:EU:C:2015:143). Cases C-479/13 and C-502/13 were not joined cases, but both cases regard the applying of a reduced rate of value added tax (VAT) to the supply of digital (or electronic) books. In both cases the CJEU ruled that by applying a reduced rate of value added tax to the supply of digital (or electronic) books France and Luxembourg have failed its obligations under Council Directive 2006/112/EC.
Case C-479/13 The Commission versus France
In Case C-479/13 the European Commission asks the Court to declare that, by applying a reduced rate of value added tax (‘VAT’) to the supply of digital (or electronic) books, the French Republic has failed to fulfil its obligations under Articles 96 and 98 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1), as amended by Council Directive 2010/88/EU of 7 December 2010 (OJ 2010 L 326, p. 1; the ‘VAT Directive’), read in conjunction with Annexes II and III to that directive and Council Implementing Regulation (EU) No 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112 (OJ 2011 L 77, p. 1).
The Commission took the view that it was contrary to the VAT Directive to extend the reduced VAT rate to transactions on books supplied by download where the chargeable event took place on or after 1 January 2012.
In this case the CJEU declared that, by applying a reduced rate of value added tax to the supply of digital or electronic books, the French Republic has failed to fulfil its obligations under Articles 96 and 98 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax as amended by Council Directive 2010/88/EU of 7 December 2010, read in conjunction with Annexes II and III to that directive and Council Implementing Regulation (EU) No 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112/EC;
For further information click here to be forwarded to the text of the ruling in Case C-479/13 as published on the website of the Court of Justice, which will open in a new window.
Case C-502/13 The Commission versus Luxembourg
In Case C-502/13 the European Commission asks the Court to declare that, by applying a rate of value added tax (‘VAT’) of 3% to the supply of digital (or electronic) books, the Grand Duchy of Luxembourg has failed to fulfil its obligations under Articles 96 to 99, 110 and 114 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1), as amended by Council Directive 2010/88/EU of 7 December 2010 (OJ 2010 L 326, p. 1; the ‘VAT Directive’), read in conjunction with Annexes II and III to that directive and Council Implementing Regulation (EU) No 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112 (OJ 2011 L 77, p. 1).
The Commission considered that the application, from 1 January 2012, of a ‘super-reduced’ VAT rate of 3% (the ‘reduced VAT rate of 3%’) to the supply of digital or electronic books was contrary to the VAT Directive.
In this case the CJEU declared that, Declares that, by applying a rate of value added tax of 3% to the supply of digital or electronic books, the Grand Duchy of Luxembourg has failed to fulfil its obligations under Articles 96 to 99, 110 and 114 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax as amended by Council Directive 2010/88/EU of 7 December 2010, read in conjunction with Annexes II and III to that directive and Council Implementing Regulation (EU) No 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112/EC;
For further information click here to be forwarded to the text of the ruling in Case C-502/13 as published on the website of the Court of Justice, which will open in a new window.
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