Julius Fillibeck Söhne GmbH & Co. KG v Finanzamt Neustadt.

• Jurisdiction: European Union
• Celex Number: 61995CJ0258
• ECLI: ECLI:EU:C:1997:491
• Docket Number: C-258/95
• Court: Court of Justice (European Union)
• Procedure Type: Reference for a preliminary ruling
• Date: 16 October 1997

Avis juridique important

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61995J0258

Judgment of the Court (Fifth Chamber) of 16 October 1997. - Julius Fillibeck Söhne GmbH & Co. KG v Finanzamt Neustadt. - Reference for a preliminary ruling: Bundesfinanzhof - Germany. - Sixth VAT Directive - Supply of services for consideration - Definition - Transport of workers by the employer. - Case C-258/95.

European Court reports 1997 Page I-05577

Summary
Parties
Grounds
Decision on costs
Operative part

Keywords

1 Tax provisions - Harmonization of laws - Turnover taxes - Common system of value added tax - Supply of services for consideration - Definition - Transport provided for employees to their place of work by the employer free of charge in the absence of any real connection either with the work performed or the wages received - Excluded

(Council Directive 77/388, Art. 2(1))

2 Tax provisions - Harmonization of laws - Turnover taxes - Common system of value added tax - Supply of services for consideration - Definition - Private use of business goods - Included - Limits

(Council Directive 77/388, Art. 6(2))

Summary

3 Article 2(1) of the Sixth Directive 77/388 on the harmonization of the laws of the Member States relating to turnover taxes is to be interpreted as meaning that an employer who provides transport for employees free of charge from their homes to the workplace where they are more than a specified distance apart, in the absence of any real connection either with the work performed or the wages received, does not effect a supply of services for consideration within the meaning of that provision.

4 Article 6(2) of the Sixth Directive 77/388 is to be interpreted as meaning that transport provided for employees free of charge by the employer between their homes and the workplace in a company vehicle serves, in principle, the employees' private purposes and thus serves purposes other than those of the business. However, that provision does not apply when, having regard to certain circumstances, such as the difficulty of finding other suitable means of transport and changes in the place of work, the requirements of the business make it necessary for the employer to provide transport for employees, in which case the supply of those transport services is not effected for purposes other than those of the business. The fact that the employer does not convey the employees in its own vehicles but commissions one of its employees to provide the transport using his own private vehicle is not relevant in that respect.

Parties

In Case C-258/95,

REFERENCE to the Court under Article 177 of the EC Treaty by the Bundesfinanzhof for a preliminary ruling in the proceedings pending before that court between

Julius Fillibeck Söhne GmbH & Co. KG

and

Finanzamt Neustadt

on the interpretation of Articles 2(1) and 6(2) of the 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 1977 L 145, p. 1),

THE COURT

(Fifth Chamber),

composed of: C. Gulmann, President of the Chamber, M. Wathelet, J.C. Moitinho de Almeida, P. Jann and L. Sevón (Rapporteur), Judges,

Advocate General: P. Léger,

Registrar: H.A. Rühl, Principal Administrator,

after considering the written observations submitted on behalf of:

- Julius Fillibeck Söhne GmbH & Co. KG, by Klaus Heininger, accountant and tax adviser,

- Finanzamt Neustadt, by Reinhard Preuninger, Oberregierungsrat,

- the German Government, by Ernst Röder, Ministerialrat at the Federal Ministry of Economic Affairs, and Bernd Kloke, Oberregierungsrat at the same Ministry, acting as Agents,

- the United Kingdom Government, by Stephen Braviner, of the Treasury Solicitor's Department, acting as Agent, and Nicholas Paines, Barrister,

- the Commission of the European Communities, by Jürgen Grunwald, Legal Adviser, acting as Agent,

having regard to the Report for the Hearing,

after hearing the oral observations of Julius Fillibeck Söhne GmbH & Co. KG, represented by Klaus Heininger, of the Finanzamt Neustadt, represented by Werner Widmann, Leitender Ministerialrat at the Ministry of Finance of Rheinland-Pfalz, and of the Commission, represented by Jürgen Grunwald, at the hearing on 5 December 1996,

after hearing the Opinion of the Advocate General at the sitting on 16 January 1997,

gives the following

Judgment

Grounds

1 By order of 11 May 1995, which was received at the Court on 31 July 1995, the Bundesfinanzhof (Federal Finance Court) referred to the Court for a preliminary ruling under Article 177 of the EC Treaty three questions concerning the interpretation of Articles 2(1) and 6(2) the 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 1977 L 145, p. 1, hereinafter `the Sixth Directive').

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