«(Sixth VAT Directive – Scope – Supply of services for consideration – Admission of a member to a partnership in consideration of payment of a contribution in cash)»

Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Supply of services for consideration – Concept – Admission of a new member to a partnership in consideration of payment of a contribution in cash – Excluded (Council Directive 77/388, Art. 2(1)) A partnership which admits a partner in consideration of payment of a contribution in cash does not effect towards that person a supply of services for consideration within the meaning of Article 2(1) of Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes.If the mere acquisition of financial holdings in other undertakings does not in itself constitute an economic activity within the meaning of the Sixth Directive, the same must be true of activities consisting in the transfer of such holdings.see paras 38, 40, 43, operative part

JUDGMENT OF THE COURT (Sixth Chamber) 26 June 2003 (1)

((Sixth VAT Directive – Scope – Supply of services for consideration – Admission of a member to a partnership in consideration of payment of a contribution in cash))

In Case C-442/01,

REFERENCE to the Court under Article 234 EC by the Bundesfinanzhof (Germany) for a preliminary ruling in the proceedings pending before that court between

and

on the interpretation of 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),

THE COURT (Sixth Chamber),,

composed of: J.-P. Puissochet, President of the Chamber, C. Gulmann, F. Macken, N. Colneric and J.N. Cunha Rodrigues (Rapporteur), Judges,

Advocate General: D. Ruiz-Jarabo Colomer,

after considering the written observations submitted on behalf of:

having regard to the Report for the Hearing,

after hearing the oral observations of the German Government, represented by W.-D. Plessing, acting as Agent, and of the Commission, represented by K. Gross, with A. Böhlke, at the hearing on 15 January 2003,

after hearing the Opinion of the Advocate General at the sitting on 6 February 2003,

gives the following

Community legislation

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This proportion shall be determined, in accordance with Article 19, for all the transactions carried out by the taxable person.However, Member States may:

The proportion shall be determined on an annual basis, fixed as a percentage and rounded up to a figure not exceeding the next unit.

National legislation

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Observations submitted to the Court

Findings of the Court

On those grounds,

THE COURT (Sixth Chamber),

in answer to the questions referred to it by the Bundesfinanzhof by order of 27 September 2001, hereby rules:

Puissochet

Gulmann

Macken

Colneric

Cunha Rodrigues

Delivered in open court in Luxembourg on 26 June 2003.

R. Grass

J.-P. Puissochet

Registrar

President of the Sixth Chamber