Official Journal of the European Union

C 455/10

(Case C-153/17) (<span class="super note-tag">1</span>)

((Reference for a preliminary ruling - Common system of value added tax (VAT) - Directive 2006/112/EC - Articles 168 and 173 - Deduction of input tax - Vehicle hire purchase transactions - Goods and services used for both taxable transactions and exempt transactions - Origin and scope of the right to deduct - Proportional deduction))

(2018/C 455/16)

Language of the case: English

Referring court

Parties to the main proceedings

Applicant: Commissioners for Her Majesty’s Revenue and Customs

Defendant: Volkswagen Financial Services (UK) Ltd

Operative part of the judgment

Article 168 and Article 173(2)(c) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax must be interpreted as meaning that, first, even where the general costs relating to supplies of moveable goods by hire purchase, such as the supplies at issue in the main proceedings, are passed on not in the amount due by the customer in respect of the supply of the goods concerned, that is to say the taxable part of the transaction, but in the amount of the interest due in respect of the ‘finance’ part of the transaction, that is to say the exempt part thereof, those general costs must nonetheless be considered, for the purposes of value added tax (VAT), to be a component of the price of that supply and, second, Member States may not apply a method of apportionment which does not take account of the initial value of the goods concerned when they are supplied, since that method is not capable of ensuring a more precise apportionment than that which would arise from the application of the turnover-based allocation key.

(<span class="note">1</span>) OJ C 178, 6.6.2017.

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