Opinion of Advocate General Darmon delivered on 30 June 1993

1 Original language: French.

2 Sixth Council Directive (77/388/EEC) of 17 May 1977 on the harmonization of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment (OJ 1977 L 145, p. 1).

3 See the observations of the appellants in the main proceedings. Annex C.

4 Ibid.

5 [1988] ECR3127.

6 The text of the questions appears at point 4 of the Report for the Hearing,

7 Article 4(2). Sec the judgment in Case 348/87 Stichting Uitvoering Financiële Acties v Staatssecretaris van Financiën [1989] ECR 1737, paragraph 10.

8 Directive 67/227/EEC, OJ, English Special Edition 1967, p. 14.

9 My emphasis.

10 Fourth recital in the preamble to the Second Council Directive (Directive 67/228/EEC of 11 April 1967, OJ, English Special Edition 1967, p. 16).

11 Case 235/85 Commission v Netherlands [1987J ECR 1471.

12 Case 107/84 Commission v Germany [1985] ECR 2655, paragraph 20.

13 Commission v Netherlands, cited above, paragraph 19.

14 See footnote 6 above.

15 Paragraph 13. Sec also paragraph 19 of the judgment in Case 51/88 Hamann [1989] ECR 767, paragraph 9 of the judgment in Case 203/87 Commission v Italy [1989] ECR 371, paragraph 19 of the judgment in Case C-185/89 Velker International Oil Company [1990] ECR I 2561 and paragraphs 13 and 14 of the judgment in Case C-193/91 Mohsche [1993] ECR I-2615.

16 Case 173/88 Skatteministeriet v Morten Henriksen [19891 ECR 2763.

17 Sec below, paragraphs 29 et scq.

18 My emphasis.

19 Sec paragraph 11 of lhe judgment in Stichting.

20 Case 139/84 Van Dijk's Boekhuis [1985] ECR 1405. Sec also to the same effect the Opinion of Advocate General Da Cruz Vilaça in Case 122/87 Commission v Italy [1988] ECR 2685.

21 Such as, for example, double taxation.

22 Sec on this point Annex 1 to the Commission's observations: explanatory memorandum is attached to the proposal for a Sixth Council Directive on the harmonization of the laws of the Member States.

23 Case 8/91 Becker [1982] ECR 53, paragraph 44, and Case 207/87 Weissgerber [1988] ECR 4433, paragraph 30.

24 Sec Article 17(2)(a) of the Sixth Directive.

25 See E. Bours Rapport sur l'application de la TVA aux opérations immobilières au sein de la Communauté, Études de la Commission des Communautés Européennes, Série Concurrence, 1971, p. 138.

26 Ibid. p. 135.

27 Above, at paragraph 21.

28 In my view a letting for the purposes of Community law includes a icasc, a licence, un bail or a convention d'occupation précaire.

29 United Kingdom Government's observations, paragraph 21.

30 Velker international Oil Company, cited above, paragraph 17.

31 Case 252/86 Bergandi [1988] ECR 1343, at paragraph 8, my emphasis.

32 Above, paragraph 30 et seq.

33 There is no doubt that a subletting must be subject to the same tax rules as a letting.

34 Cited above at footnote 15.

35 Paragraph 15, my emphasis.

36 See Article 13A(1).

37 My emphasis.

38 Sec observations of the Commission, point 6.6.

39 Case C-320/88 [1990] ECR I-285.

40 Paragraph 7, my emphasis.

41 An owner may sell a property even when it is let.

42 United Kingdom Government's observations, paragraph 38.