Case C‑28/16

MVM Magyar Villamos Művek Zrt.

v

Nemzeti Adó- és Vámhivatal Fellebbviteli Igazgatóság

(Request for a preliminary ruling from the Kúria)

(Reference for a preliminary ruling — Article 99 of the Rules of Procedure of the Court of Justice — Value added tax — Directive 2006/112/EC — Articles 2, 9, 26, 167, 168 and 173 — Deduction of input tax — Taxable person simultaneously carrying out economic and non-economic activities — Holding company supplying services to its subsidiaries free of charge)

Summary — Order of the Court (Sixth Chamber), 12 January 2017

1.        Harmonisation of fiscal legislation — Common system of value added tax — Economic activities within the meaning of Article 9(1) of Directive 2006/112 — Involvement of a holding company in the management of its subsidiaries — Included, provided transactions are carried out which are subject to VAT by virtue of Article 2 of the directive

(Council Directive 2006/112, Arts 2 and 9(1))

2.        Harmonisation of fiscal legislation — Common system of value added tax — Deduction of input tax — Taxable person simultaneously carrying out economic and non-economic activities — Holding company supplying services to its subsidiaries free of charge — Right to deduction — Services relating to transactions falling outside the scope of Directive 2006/112 — Not included

(Council Directive 2006/112, Arts 2, 9, 26, 167, 168 and 173)

1.      See the text of the decision.

(see paras 31-34)

2.      Articles 2, 9, 26, 167, 168 and 173 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax must be interpreted as meaning that, in so far as the involvement of a holding company, such as that at issue in the main proceedings, in the management of its subsidiaries, where it has charged those subsidiaries neither for the cost of the services procured in the interest of the group of companies as a whole or in the interest of certain of its subsidiaries, nor for the corresponding VAT, does not constitute an ‘economic activity’, within the meaning of that directive, such a holding company does not have the right to deduct input VAT paid in respect of those services in so far as those services relate to transactions falling outside the scope of that directive.

(see para. 48, operative part)