Judgment of the Court (Sixth Chamber) 27 June 1989

In Case 50/88 REFERENCE to the Court under Article 177 of the EEC Treaty by the Finanzgericht München (Finance Court, Munich) for a preliminary ruling in the proceedings pending before that court between

THE COURT (Sixth Chamber) composed of: T. Koopmans, President of Chamber, T. F. O'Higgins, G. F. Mancini, C. N. Kakouris and F. A. Schockweiler, Judges, Advocate General: F. G. Jacobs Registrar: D. Louterman, Principal Administrator

after considering the observations submitted on behalf of: the Government of the Federal Republic of Germany, by R. Morawitz, Ministerialdirigent at the Federal Ministry of Economic Affairs, acting as Agent, at the hearing, the Government of the Portuguese Republic, by L. Fernandez and A. Correia, acting as Agents, in the written procedure, the Commission of the European Communities, by its Legal Adviser H. Etienne, acting as Agent,

having regard to the Report for the Hearing and further to the hearing on 25 January 1989,

after hearing the Opinion of the Advocate General delivered at the sitting on 2 March 1989,

gives the following

Judgment

The taxation of the private use of goods forming part of the assets of a business (Question 1(1))

The right to partial deduction (Question 1(2))

The Member States' power of derogation (Question 1(3))

The implementation of the Sixth Directive in national law (Question 11(1))

The direct effect of Article 6(2) of the Sixth Directive (Question II(2))

The taxable amount in respect of the private use of business goods (Question III)

Costs

1 Language of the case: German.