Becker v Finanzamt Münster-Innenstadt
A provision of a directive has direct effect if it is unconditional and sufficiently precise, even where the Member State has some discretion in implementing other parts of it.
Facts
Mrs Becker was a self employed credit negotiator in Germany. The Sixth VAT Directive provided that certain financial transactions, including the negotiation of credit, were exempt from VAT, but Germany had not implemented the directive in time. The German tax authorities charged her VAT on her services, and she argued that she was exempt under the directive.
Legal principle
The Court of Justice held that Mrs Becker could rely on the exemption in the directive. Wherever the provisions of a directive appear, as far as their subject matter is concerned, to be unconditional and sufficiently precise, those provisions may, in the absence of implementing measures adopted within the prescribed period, be relied upon as against any national provision which is incompatible with the directive. The fact that Member States had some discretion in implementing other parts of the directive did not prevent this provision from having direct effect.
Related cases on direct effect of directives
- CIA Security International SA v Signalson SA Case C-194/94, [1996] ECR I-2201
- Dansk Industri (DI), acting on behalf of Ajos A/S v Estate of Karsten Eigil Rasmussen Case C-441/14, EU:C:2016:278
- Egenberger v Evangelisches Werk für Diakonie und Entwicklung eV Case C-414/16, EU:C:2018:257
- Faccini Dori v Recreb Srl Case C-91/92, [1994] ECR I-3325
- Farrell v Whitty Case C-413/15, EU:C:2017:745
- Foster v British Gas plc Case C-188/89, [1990] ECR I-3313
- Fratelli Costanzo SpA v Comune di Milano Case 103/88, [1989] ECR 1839
- Johnston v Chief Constable of the Royal Ulster Constabulary Case 222/84, [1986] ECR 1651
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