14.3.2016

EN

Official Journal of the European Union

C 98/17

(Case C-616/15)

(2016/C 098/22)

Language of the case: German

Parties

Applicant: European Commission (represented by: M. Owsiany-Hornung and B.-R. Killmann, acting as Agents)

Defendant: Federal Republic of Germany

Form of order sought

The applicant claims that the Court should:

1.declare that, by restricting, to groups whose members exercise a limited number of professions, the exemption from VAT for the supply by independent groups of persons carrying on an activity which is exempt from VAT, or in relation to which they are not taxable persons, of services to their members for the direct purposes of the exercise of that activity where those groups merely claim from their members exact reimbursement of their share of the joint expenses, the Federal Republic of Germany has failed to fulfil its obligations under Article 132(1)(f) of the VAT directive; (1)

2.order the Federal Republic of Germany to pay the costs.

Pleas in law and main arguments

In support of the action, the applicant relies on the following:

Germany restricts to certain well-defined professions the exemption from VAT for the supply of services by independent groups of persons carrying on an activity which is exempt from VAT, or in relation to which they are not taxable persons, for the direct purposes of the exercise of that activity. The exemption under the German law on VAT covers solely groups whose members are either doctors or health professionals and hospitals or establishments similar to hospitals.

This is incompatible with Article 132(1)(f) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax. Neither the wording, purpose, nor preparatory work leading to the adoption of Article 132(1)(f) of Directive 2006/112/EC justifies such a restriction of the exemption from VAT to groups from certain professions. The exemption should, however, apply to groups from all professions provided that they exercise tax-exempt professions.

The restriction under the German law on VAT is also not justified by a potential general distortion of competition. This is because, as far as tax exemptions are concerned, the presence or absence of a distortion of competition can only apply with regard to the specific facts of a given case. Distortions of competition cannot be assessed in the abstract for certain professions of a group and services provided in connection with those professions.

(1) Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1).