Judgment of the Court (First Chamber) of 12 September 2013 (request for a preliminary ruling from the Conseil d’État – France) – Le Crédit Lyonnais v Ministre du Budget, des Comptes publics et de la Réforme de l’État
(Case C-388/11) 1
(Value added tax – Sixth Directive 77/388/EEC – Articles 17 and 19 – Deduction of input tax paid – Use of goods and services for both taxable and exempt transactions – Proportional deduction – Calculation of the proportion – Branches established in other Member States and in third States – Not taking their turnover into account)
Language of the case: French
Referring court
Conseil d’État
Parties to the main proceedings
Applicant: Le Crédit Lyonnais
Defendant: Ministre du Budget, des Comptes publics et de la Réforme de l’État
Re:
Request for a preliminary ruling – Conseil d’État – Interpretation of Article 13B(d)(1) to (5), Article 17(2), (3)(a) and (c), and (5), and Article 19 of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation 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) – Deduction of input tax – Goods and services used both for deductible and non-deductible transactions – Calculation of the deductible proportion – Obligation of the principal establishment of a company established in a Member State to take account of income of branches established in another Member State
Operative part of the judgment
1. Article 17(2) and (5) and Article 19(1) of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes – Common system of value added tax: uniform basis of assessment, must be interpreted as meaning that, in determining the deductible proportion of VAT applicable to it, a company, the principal establishment of which is situated in a Member State, may not take into account the turnover of its branches established in other Member States.
2. Article 17(3)(a) and (c) and Article 19(1) of the Sixth Directive 77/388 must be interpreted as meaning that, in determining the deductible proportion of VAT applicable to it, a company, the principal establishment of which is situated in a Member State, may not take into account the turnover of its branches established in third States.
3. The third subparagraph of Article 17(5) of the Sixth Directive 77/388 must be interpreted as not permitting a Member State to adopt a rule for the calculation of the deductible proportion per sector of business of a company subject to tax which authorises that company to take into account the turnover of a branch established in another Member State or in a third State.
____________1 OJ 2011 C 298, 8.10.2011.