«(Sixth VAT Directive – Article 13B(b) – Exempt transactions – Letting of immovable property – Meaning – Cigarette vending machines installed in commercial premises)»

Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Exemptions provided for by the Sixth Directive – Exemption for the letting of immovable property – Definition – Grant of right to install cigarette vending machines on commercial premises – Not included (Council Directive 77/388, Art. 13B(b)) On a proper construction of Article 13B(b) of Sixth Council Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes, the grant, by the owner of premises to an owner of a cigarette vending machine, of the right to install the machine, and to operate and maintain it in the premises for a period of two years, in a place nominated by the owner of the premises, in return for a percentage of the gross profits on the sales of cigarettes and other tobacco goods in the premises, but with no rights of possession or control being granted to the owner of the machine other than those expressly set out in the agreement between the parties, does not amount to a letting of immovable property within the meaning of that provision.see para. 31, operative part

JUDGMENT OF THE COURT (Fifth Chamber) 12 June 2003 (1)

((Sixth VAT Directive – Article 13B(b) – Exempt transactions – Letting of immovable property – Meaning – Cigarette vending machines installed in commercial premises))

In Case C-275/01,

REFERENCE to the Court under Article 234 EC by the House of Lords for a preliminary ruling in the proceedings pending before that court between

and

on the interpretation of Article 13B(b) 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),

THE COURT (Fifth Chamber),,

composed of: C.W.A. Timmermans, President of the Fourth Chamber, acting as President of the Fifth Chamber, D.A.O. Edward, A. La Pergola (Rapporteur), P. Jann and S. von Bahr, Judges,

Advocate General: S. Alber,

after considering the written observations submitted on behalf of:

having regard to the Report for the Hearing,

after hearing the oral observations of Sinclair Collis Ltd, the United Kingdom Government and the Commission at the hearing on 18 September 2002,

after hearing the Opinion of the Advocate General at the sitting on 10 October 2002,

gives the following

Community legislation

...

National law

Observations submitted to the Court

Findings of the Court

On those grounds,

THE COURT (Fifth Chamber),

in answer to the question referred to it by the House of Lords by order of 7 June 2001, hereby rules:

Timmermans

Edward

La Pergola

Jann

von Bahr

Delivered in open court in Luxembourg on 12 June 2003.

R. Grass

M. Wathelet

Registrar

President of the Fifth Chamber