C-119/11 Commission v France

France breached the standstill by reducing the rate on certain concert admissions

What is the case?

From 01-01-2007 France applied a reduced rate of VAT of 2,10 per cent to revenue from admission to the first performances of concerts given in establishments where refreshments are served on request during the performance. That rate is a super reduced rate maintained under the standstill provisions rather than one drawn from Annex III, and the Commission took the view that France had extended its scope after the reference date. It brought infringement proceedings under Articles 99 and 110 of the VAT Directive.

What is the Court asked?

Whether, by applying from 01-01-2007 a reduced rate of 2,10 per cent to revenue from admission to the first performances of concerts given in establishments in which refreshments are served on request during the performance, France failed to fulfil its obligations under Articles 99 and 110 of the VAT Directive.

The Court’s decision

The Court finds the infringement established and orders France to pay the costs. Article 110 allows a Member State to keep rates below the minimum of 5 per cent only where they were in force on 01-01-1991 and were adopted for clearly defined social reasons and for the benefit of the final consumer. A rate introduced or extended after that date falls outside the derogation. A short judgment that illustrates how tightly the standstill in Article 110 is read.

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