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14.5.2011   

EN

Official Journal of the European Union

C 145/16

Action brought on 4 March 2011 — European Commission v French Republic

(Case C-119/11)

2011/C 145/22

Language of the case: French

Parties

Applicant: European Commission (represented by: F. Dintilhac and C. Soulay, agents)

Defendant: French Republic

Form of order sought

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Declare that, by applying, since 1 January 2007, a VAT rate of 2,10 % to income from charges for admission to the first performances of concerts held in establishments where refreshments may be obtained during the performance, the French Republic has failed to fulfil its obligations under Articles 99 and 110 of the VAT Directive; (1)

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order French Republic to pay the costs.

Pleas in law and main arguments

By the present action, the Commission complains that, since 1 January 2007, the defendant has applied a VAT rate of 2,10 % to income from charges for admission to the first performances of concerts held in establishments where refreshments may be obtained during the performance, instead of the earlier rate of 5,5 %.

The Commission points out that, under Article 110 of the VAT Directive, Member States which, at 1 January 1991, were applying reduced rates of VAT lower than the minimum rate of 5 % may continue to apply those rates. However, Member States are not permitted under that provision to introduce new derogations or extend the scope of the derogations existing as at 1 January 1991 where they have restricted the scope of the derogations after that date. However, that is exactly what occurred in this case, since, as from 1 January 1997, the defendant restricted the scope of the derogation existing as at 1 January 1991 in connection with reduced rates of VAT and expressly excluded from this income relating to first performances generated by the sale of tickets ‘which give access solely to concerts held in establishments where refreshments may be obtained during the performance’. By extending the scope of a derogation from the Directive, the French Republic has therefore disregarded the purpose of the Directive.

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