Keywords
Summary

Keywords

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1. Tax provisions - Harmonization of laws - Turnover taxes - Common system of value added tax - Economic activities carried out independently within the meaning of Article 4 of the Sixth Directive - Activities such as those of tax collectors entrusted with the collection of local taxes in Spain

(Council Directive 77/388/EEC, Art. 4(1) and (4) )

2. Tax provisions - Harmonization of laws - Turnover taxes - Common system of value added tax - Taxable persons - Bodies governed by public law - Activities engaged in as public authorities not taxable - Condition - Activity must be engaged in directly

(Council Directive 77/388/EEC, Art 4(5) )

Summary

1. Article 4(1) and (4) of the Sixth Directive (77/388/EEC) on the harmonization of the laws of the Member States relating to turnover taxes must be interpreted as meaning that an activity such as that carried out in Spain by zonal tax collectors, appointed by the local authority whose taxes they collect, must be regarded as being carried out independently because, besides the fact that such collectors are not paid a salary and are not bound to the commune by a contract of employment, the legal relationship on the basis of which they engage in their activity is not such as to constitute one of employer and employee vis-à-vis the local authority which uses their services.

2. Article 4(5) of the Sixth Directive (77/388/EEC) on the harmonization of the laws of the Member States relating to turnover taxes, which provides that bodies governed by public law are not to be considered taxable persons in respect of the activities or transactions in which they engage as public authorities, must be interpreted as meaning that it is not applicable when the activity of a public authority is not engaged in directly but is entrusted to an independent third party.