30.5.2016

Official Journal of the European Union

C 191/16

(Case C-164/16)

(2016/C 191/20)

Language of the case: English

Referring court

Parties to the main proceedings

Applicant: Commissioners for Her Majesty's Revenue & Customs

Defendant: Mercedes Benz Financial Services UK Ltd

Questions referred

1.What is the meaning of the words ‘a contract…which provides that in the normal course of events ownership is to pass at the latest upon payment of the final instalment’ in Article 14.2(b) (1)?

2.In particular, in the context of the present case, does the phrase ‘in the normal course of events’ require a tax authority to do no more than to identify the existence of an option to purchase which can be exercised no later than upon payment of the final instalment?

3.Alternatively, does the phrase ‘in the normal course of events’ require the national authority to go further and to determine the economic purpose of the contract?

4.If the answer to (3) is yes:

a.Should the interpretation of Article 14.2 be influenced by an analysis of whether the customer is likely to exercise such an option?

b.Is the size of the price payable on exercise of the option to purchase relevant for the purposes of determining the economic purpose of the contract?

Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.

OJ L 347, p. 1

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