Keywords
Summary

Keywords

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1. Tax provisions ° Harmonization of laws ° Turnover taxes ° Common system of value added tax ° Supply of services ° Determination of place of taxation ° "Advertising services" within the meaning of the Sixth Directive ° Definition ° Promotional activity

(Council Directive 77/388, Art. 9(2)(e))

2. Actions against Member States for failure to fulfil obligations ° Objective nature ° Whether account may be taken of incorrect interpretation of Community legislation ° Not permitted

(EEC Treaty, Art. 169)

Summary

1. The concept of "advertising services" within the meaning of Article 9(2)(e) of the Sixth Directive, relating to the place of taxation for certain supplies of services, is a Community concept which must be interpreted uniformly in order to avoid instances of double taxation or non-taxation which may result from conflicting interpretations.

That concept covers a promotional activity, such as the sale of goods at reduced prices, the free distribution of goods, the supply of services at reduced prices or free of charge, or the organization of a cocktail party or a banquet, if that activity involves conveying a message intended to inform the public of the existence and qualities of the product or service which is the subject-matter of that activity, with a view to increasing sales of that product or service.

2. An action for failure to fulfil obligations brought under Article 169 of the EEC Treaty is objective in nature. In the context of such an action, it is for the Court to decide whether or not the Member State in question has failed to fulfil its obligations as alleged, and the fact that such a failure results from a Member State' s incorrect interpretation of the Community-law provisions in question cannot preclude the Court from declaring that there has been such a failure.