European Court of Justice

General contextThis reference for preliminary ruling was made in proceedings between the Skatteverket, which is competent, in Sweden, to collect value added tax ('VAT') and PFC Clinic AB concerning VAT due for the accounting period May 2007.It concerns the interpretation of Article 132(1)(b) and (c) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (the 'VAT Directive'). 1 FactsPFC offers medical services in the field of plastic surgery and cosmetic treatments.At the material time, it provided services involving both cosmetic and reconstructive plastic surgery and also some skincare services.PFC carries out procedures such as breast augmentation and reduction, breast lifts, abdominoplasty, liposuction, face lifts, brow lifts, eye, ear and nose operations and other plastic surgery.That company also offers treatments such as permanent hair removal and skin rejuvenation by pulsed light, anti-cellulite treatments and Botox and restylane injections.PFC claimed the refund of input tax for the period corresponding to May 2007.In response to that claim, the Skatteverket refused both the refund and the deduction of that tax.According to the Skatteverket, VAT could not be refunded in respect of exempt transactions nor could a deduction of VAT be granted since cosmetic and reconstructive surgery constitute medical care exempt from taxation.PFC appealed against the decision of the Skatteverket before the länsrätten i Stockholms län (County Administrative Court, Stockholm).The latter upheld the appeal, holding that the services offered by that company in respect of plastic surgery and cosmetic treatments did not constitute medical care.