Case C‑471/15
Sjelle Autogenbrug I/S
v
Skatteministeriet
(Request for a preliminary ruling from the Vestre Landsret)
(Reference for a preliminary ruling — Taxation — Value added tax — Directive 2006/112/EC — Special scheme for taxing the profit margin — Concept of ‘second-hand goods’ — Sales of parts removed from end-of-life vehicles)
Summary — Judgment of the Court (Third Chamber), 18 January 2017
Harmonisation of fiscal legislation — Common system of value added tax — Special schemes — Special scheme for taxing the profit margin — Concept of second-hand goods — Used parts from end-of-life motor vehicles, sold as spare parts — Supply of such parts by a taxable dealer — Included
(Council Directive 2006/112, Recital 51, and Arts 311(1)(1), 314(a) and 315)
Article 311(1)(1) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax must be interpreted as meaning that used parts, from end-of-life motor vehicles purchased by a vehicle reuse undertaking from a private individual, intended to be sold as spare parts, constitute ‘second-hand goods’ within the meaning of that provision, with the result that the supplies of such parts, effected by a taxable dealer, are subject to the application of the profit margin scheme.
In that regard, as for the profit margin scheme, it is to be noted that, in the words of the second paragraph of Article 315 of Directive 2006/112, the profit margin of the taxable dealer is to be equal to the difference between the selling price charged by him for the goods and the purchase price.
The failure to apply those arrangements to spare parts, taken from end-of-life vehicles purchased from private individuals, would be contrary to the objective of the special margin scheme which seeks, as is apparent from recital 51 of Directive 2006/112, to avoid double taxation and distortions of competition between taxable persons in the area of second-hand goods (see, to that effect, judgments of 1 April 2004, Stenholmen, C‑320/02, EU:C:2004:213, paragraph 25; of 8 December 2005, Jyske Finans, C‑280/04, EU:C:2005:753, paragraph 37; and of 3 March 2011, Auto Nikolovi, C‑203/10, EU:C:2011:118, paragraph 47)
Making transactions for the supply of such spare parts effected by a taxable dealer subject to VAT would lead to double taxation, in so far as, first, the sale price of those parts necessarily already takes account of input VAT paid at the time of the vehicle’s purchase by a person falling within Article 314 (a) of Directive 2006/112 and, secondly, neither that person nor the taxable dealer was able to deduct that amount (see judgment of 3 March 2011, Auto Nikolovi, C‑203/10, EU:C:2011:118, paragraph 48 and the case-law cited)
(see paras 38-40, 45, operative part)