WRITTEN QUESTION No. 1979/96 by Martin SCHULZ to the Commission. Discrimination against employees and self- employed persons with their residence in Belgium and their place of work or business in Germany
Date: 1996-07-17
Institutions: European Parliament, SCHULZ
Subjects: Belgium, Germany, application of EU law, economic discrimination, frontier worker, motor car, self-employed person, vehicle registration, vehicle tax, wage earner













EUR-Lex - 91996E1979 - EN






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91996E1979

WRITTEN QUESTION No. 1979/96 by Martin SCHULZ to the Commission. Discrimination against employees and self- employed persons with their residence in Belgium and their place of work or business in Germany  


Official Journal C 365 , 04/12/1996 P. 0059 





WRITTEN QUESTION E-1979/96 by Martin Schulz (PSE) to the Commission (17 July 1996)Subject: Discrimination against employees and self-employed persons with their residence in Belgium and their place of work or business in GermanyEmployees of a German firm with premises in Germany who live in Belgium may not drive the company car provided by their employer for either professional or private purposes in Belgium. They must first pay Belgian road tax, even though the vehicle is already taxed in Germany. The same applies to the self-employed.Workers employed in Germany who have their residence in Belgium risk finding that the above situation becomes an obstacle to obtaining employment with a German employer. They are at a disadvantage vis-à-vis their opposite numbers living in Germany.For employers who wish to operate over the German border into Belgium, this situation constitutes a competitive disadvantage, since they may have to pay double road tax.Does the Commission not think that double taxation of company cars constitutes discrimination against employees and that the situation infringes EU rules on the freedom of movement of persons, goods and services? What steps does the Commission plan to take?Answer given by Mr Monti on behalf of the Commission (17 September 1996)The Commission is fully aware of the situation referred to by the Honourable Member, namely the use by a resident of a Member State in his Member State of residence within the meaning of Directive 83/182/EEC ((OJ L 105, 23.4.1983. )) of a company car provided by his employer and registered in another Member State.In the particular case described by the Honourable Member, no tax is payable on the company car registered in Germany other than VAT, which is deductible in any event, whereas in Belgium, in addition to VAT, vehicle registration tax is chargeable. This situation is not unique to Belgium but is encountered, albeit with differing arrangements, in twelve of the fifteen Member States.Accordingly, the Commission takes the view that a satisfactory solution to the problem posed by the use of company cars can be found only within the framework of an initiative at the level of Community law. It is currently carrying out a review of vehicle taxation with a view to identifying what action is appropriate at Community level in the interests of improving the functioning of the internal market and of advancing other Community policies. The problem raised by the Honourable Member will be examined in the course of this review.The Commission is looking into whether the Belgian rules are compatible with Article 48 of the EC Treaty.