ECJ Articles 6(1) and 11(A)(1)(a) of the Sixth Council Directive (77/388/EEC) on the harmonization of the laws of the Member States relating to turnover taxes, in respect of the definition of a supply of services and the constitution of the taxable amount, respectively, are to be interpreted as meaning that an undertaking to discontinue milk production given by a farmer under Regulation No 1336/86 does not constitute a supply of services.
Consequently, any compensation received for that purpose is not subject to turnover tax.
Where it grants such compensation, the Community is not in the situation of a consumer who remunerates a service supplied by a farmer who gives such an undertaking, but is acting in the common interest of promoting the proper functioning of the Community milk market.
Citations:
C-215/94, [1996] EUECJ C-215/94, [1996] ECR I-959, [1996] STC 328
Links:
Jurisdiction:
European
Cited by:
Cited – Revenue and Customs v Frank A Smart and Son Ltd SC 29-Jul-2019
The question was whether a taxpayer can deduct as input tax the VAT which it has incurred in purchasing entitlements to an EU farm subsidy, the Single Farm Payment. The taxpayer had used those entitlements to annual subsidies over several years and . .
Lists of cited by and citing cases may be incomplete.
VAT
Updated: 17 April 2022; Ref: scu.161400