27.8.2011

Official Journal of the European Union

C 252/19

(Case C-296/11)

2011/C 252/36

Language of the case: French

Parties

Applicant: European Commission (represented by: C. Soulay and L. Lozano Palacios, acting as Agents)

Defendant: French Republic

Form of order sought

—Declare that, by applying the special scheme for travel agencies to services supplied to persons other than travellers (in particular to other travel agencies), the French Republic has failed to fulfil its obligations under Articles 306 to 310 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax; (1)

—order the French Republic to pay the costs.

Pleas in law and main arguments

The Commission raises a single plea in law in support of its action, alleging the wrongful application of the special scheme for travel agencies to services supplied to persons other than travellers. In that regard, it points out that the scheme applies only where the travel service is sold to a traveller. However, it is not applicable to services supplied by travel agencies to other travel agencies or to tour operators. Having regard to the wording of the provisions of the Code général des impôts (General Tax Code) which refer to a ‘client’ rather than a ‘traveller’, the defendant uses an approach based on the ‘client’ and thus applies the special scheme for travel agencies broadly.

The Commission also rejects the argument advanced by the French authorities that the French legislation enables the objectives pursued by the special scheme, namely the simplification of travel agencies’ administrative formalities and the attribution of VAT revenue to the Member State in which the end consumption of each individual service took place, to be better achieved.

(1) OJ 2006 L 347, p. 1.