WRITTEN QUESTION E-2222/00

by Bernard Poignant (PSE) to the Commission

(3 July 2000)

Subject: Internal market and vehicle registration

The European Union's internal market is based on a fundamental principle: freedom of movement for persons, goods, services and capital.

One of the aims of Community legislation is to guarantee that the principle of free movement is respected and, hence, that any national practice acting as a hindrance to this freedom is restricted.

The concept of European citizenship has also been strengthened as a result of the Treaty of Amsterdam. Guaranteeing mobility for individuals, in particular young people, in the European Union will have a decisive impact on the success of this project.

However, there are still national administrative measures which may be considered as a hindrance to movement within the Community.

For instance, what happens to someone who decides to spend a few months in another EU Member State with a car registered in his country of origin? Is he obliged to change the vehicle's registration and insurance in the host country? If so, could consideration be given to adopting a provision to ensure that the vehicle may still be used without having to make these changes?

Answer given by Mr Bolkestein on behalf of the Commission

(14 September 2000)

The tax arrangements relating to the temporary use of a vehicle in a Member State other than that in which it has been registered are set out in Directive 83/182/EEC of 28 March 1983 on tax exemptions within the Community for certain means of transport temporarily imported into one Member State from another(1).

Under the Directive, tax exemption is granted for a period, continuous or otherwise, of not more than six months in any twelve months for the temporary use of private vehicles and certain other means of transport in a Member State other than that of registration, provided that the user has his or her normal residence in a Member State other than the Member State of temporary importation, that he or she employs the means of transport in question for his or her private use and the said means of transport is not hired out or lent to a resident of that Member State. No change in registration is required for tax purposes if use remains temporary within the meaning of the Directive.

Directive 83/182/EEC was implemented in 1984 and does not cover all the possible cases that could arise in the single market as it has developed since 1 January 1993 in particular. The Commission has therefore presented a proposal(2) to the Council to replace the Directive in question. The proposal has been approved by Parliament but has not yet been adopted by the Council. To interpret the directive currently in force, as far as possible in line with the needs of the European internal market, the Commission goes by the case law of the Court and the rules governing the internal market.

In regard to civil liability resulting from the movement of vehicles, the Community legislation in force aims to guarantee the free movement of vehicles within the Community and to compensate victims of road accidents. The legislation was adopted on the basis of the provisions of the EC Treaty (Article 95) (formerly Article 100a) on the establishment of an internal market between Member States.

The four motor directives(3) established the principle of compulsory cover on the basis of a single premium for civil liability in respect of the use of motor vehicles and stipulated the minimum content. This compulsory insurance applies throughout Community territory and for the entire duration of the contract as long as the vehicle remains registered in the country of origin.

(1) OJ L 105, 23.4.1983.

(2) Proposal for a Council Directive governing the tax treatment of private motor vehicles moved permanently to another Member State in connection with a transfer of residence or used temporarily in a Member State other than that in which they are registered (OJ C 108, 7.4.1998).

(3) Directives 72/166/EEC (OJ L 103, 2.5.1972), 84/5/EEC (OJ L 8, 11.1.1984), 90/232/EEC (OJ L 129, 19.5.1990) and 2000/26/EC (OJ L 181, 20.7.2000).