Roadtrip through ECJ cases: Focus on ”VAT rates” (Art. 96-99)

Last updated: March 29, 2024

Articles in the EU VAT Directive 2006/112/EU

Section 1 Standard Rates

Article 96
Member States shall apply a standard rate of VAT, which shall be fixed by each Member State as a percentage of the taxable amount and which shall be the same for the supply of goods and for the supply of services.

Article 97
From 1 January 2011 until 31 December 2015, the standard rate may not be lower than 15 %

Section 2 Reduced Rates

Article 98
1. Member States may apply either one or two reduced rates.
2. The reduced rates shall apply only to supplies of goods or services in the categories set out in Annex III. The reduced rates shall not apply to electronically supplied services.
3. When applying the reduced rates provided for in paragraph 1 to categories of goods, Member States may use the Combined Nomenclature to establish the precise coverage of the category concerned.

Article 99
1. The reduced rates shall be fixed as a percentage of the taxable amount, which may not be less than 5 %.
2. Each reduced rate shall be so fixed that the amount of VAT resulting from its application is such that the VAT deductible under Articles 167 to 171 and Articles 173 to 177 can normally be deducted in full.

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ECJ Cases decided (not yet complete)

• Accomodation
  • C‑715/18 (Sailors Association Cuxhaven) – Reduced VAT rate campsites and boat mooring
  • C-733/22 (Valentina Heights) – The eligibility for a reduced VAT rate for hotels cannot be contingent upon possessing a categorization certificate
• Amusement parks
  • C-406/20 (Phantasialand) – Judgment – Difference in VAT rates at permanent and temporary attractions not in conflict with EU law
  • C-576/23 (Elite Games) – Order – VAT rate: Entertainment machines do not fall in scope of ”entrance fee to amusement parks”
•  Animals
  • C-441/09 (Commission v Austria) – No reduced VAT rate to all deliveries, imports and intra-Community purchases of horses
  • C-453/09 (Commission v Germany) – No reduced VAT rate for live animals/horses
  • C-596/10 (Commission v France) – No Reduced VAT rate if horses are not intended for use in the preparation of foodstuffs or in agriculture
  • C-108/11 (Commission v Ireland) – No reduced VAT rate for greyhounds and horses not normally intended for the preparation of foodstuffs
•  Books
  • C-219/13 (K) – Reduced VAT rate applicable only to books printed on paper
  • C-479/13 (Commission vs. FR) – Reduced rate of VAT of 5.5 percent on electronic books, in contrast with paper books, is not compatible with the EU law
  • C-502/13 (Commission vs. LU) – Reduced rate of VAT of 5.5 percent on electronic books, in contrast with paper books, is not compatible with the EU law
  • C-390/15 (RPO) – No reduced VAT rate for the delivery of digital books by electronic means
• Cinema access
  • C-3/09 (Erotic Center) – Individual cabin for watching movies on demand are not considered ”granting cinema access”
• Clothing and clothing accessories for babies and children’s shoes
  • C-49/09 (Commission v Poland) – Application of reduced rate – Clothing and clothing accessories for babies and children’s shoes
• Composite supplies
  • C-463/16 (Stadion Amsterdam) – Principal element determines the VAT rate for the Composite Supply of services
• Fire protection material
  • C-639/13 (Commission v Poland) – Items intended for fire protection subject to standard VAT rate
• Firewood
  • C-515/20 (Finanzamt A) – Judgment – Supply of wood chips may be excluded under national law from the reduced VAT rate
• Foodstuffs
  • C-499/16 (AZ) – Application of the reduced VAT rate to fresh pastry products and fresh pastries depends only on the ‘ best before date ”or the“ use by date ”of these goods
  • C-331/19 (Staatssecretaris van Financiën vs X) – Definition of term ‘foodstuffs for human consumption’
  • C-146/22 (Dyrektor Krajowej Informacji Skarbowej) – Judgment – Different VAT rates for goods are sold at retail or prepared and supplied hot for immediate consumption
• Medical products
  • C-360/11 (Commission v Spain) – Spanish reduced VAT rate for some medical products in violation of EU law
  • C-678/13 (Commission vs. Poland) – Application of a reduced VAT rate on medical equipment, aids and other devices as well as on pharmaceutical products
  • C-573/15 (Oxycure Belgium) – Application of standard VAT rate to the supply of rental of oxygen concentrators
  • C-597/17 (Belgisch Syndicaat van Chiropraxie and Others) – Medical exemption & VAT rate
• Prize money
  • C-432/15 (Pavlína Baštová) – Prize money is not a Taxable Transaction for VAT purposes
• Real Estate
  • C-433/22 (HPA – Construções) – Reduced VAT for renovating and repairing private dwellings which are used as private dwellings
• Restaurant Services
  • C-703/19 (J.K.) – Scope of the concept of a ‘restaurant service’ to which a reduced rate of VAT applies
• Transport
  • Joined Cases C-454/12 (Pro Med Logistik) & C-455/12 (Pongratz) – Different VAT rates for two types of passenger transport in principle not contrary to EU law
• Travel agents
  • C-552/17 (Alpenchalets Resorts) – Travel agents; ancillary services; reduced VAT rate
• Works of art
  • C-145/18 (Photographiques) – Reduced VAT rate; works of art; photographs

Pending ECJ Cases

• None

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