19Furthermore, the referring court notes that in Case C-427/98 Commission v Germany [2002] ECR I-8315, the Court held that Member States are entitled not to apply the principles of the judgment in Elida Gibbs if the principal service is exempt. In that regard, the referring court considers that the judgment in Commission v Germany must be understood as meaning that the principles laid down by the Court in Elida Gibbs should not be applied if the last services in the distribution chain are exempt. If the principal services fall within the special scheme under Article 26 of the Sixth Directive, Article 26(3) treats those services as exempted intermediary services where the transactions entrusted by the service provider to other taxable persons are performed by such persons outside the European Union. If those transactions are performed both inside and outside the European Union, the services are only partially exempt.
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