WRITTEN QUESTION No. 1798/97 by Nikitas KAKLAMANIS to the Commission. Retroactive swingeing taxation on private vehicles
Date: 1997-05-28
Institutions: European Parliament, KAKLAMANIS
Subjects: EU law - national law, Greece, NATO, NATO countries, import, national law, residence, tax-free allowance, vehicle registration, vehicle tax













EUR-Lex - 91997E1798 - EN






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91997E1798

WRITTEN QUESTION No. 1798/97 by Nikitas KAKLAMANIS to the Commission. Retroactive swingeing taxation on private vehicles  


Official Journal C 060 , 25/02/1998 P. 0044 





WRITTEN QUESTION E-1798/97 by Nikitas Kaklamanis (UPE) to the Commission (28 May 1997)Subject: Retroactive swingeing taxation on private vehiclesBy Law No 2459/97 the Republic of Greece has abolished exemptions in respect of the import of vehicles, but not of other personal effects, for one single category of Greek returning to Greece, namely people returning in order to settle permanently in Greece, having been employed or self-employed outside the country for more than two consecutive years.This decision totally overlooks the fact that these vehicles form part of the personal effects of each entitled person which were exempt from VAT on purchase, because the purchasers were employed in the diplomatic or consular services or because the vehicles were purchased in the Member States of NATO or other international organizations.This law which has been in force in Greece since 1.1.1997 has taken the owners by surprise within the required six-month period of use before their permanent establishment in Greece, so they have terrible financial problems in raising the amount of taxation due (special consumer taxation and VAT), since in accordance with this law vehicles imported until 18 August 1997 attract taxation of over 75% of their value, while after that date they attract taxation of 400%. However, the exemption is maintained on imports of vehicles in the event of the permanent establishment of other (i.e. ordinary, non-diplomatic) owners in Greece.Will the Commission say what action it intends to take to abolish these taxes, since it is clear that no one would have bought the above vehicles if they had known in advance that they would attract such high taxation?Answer given by Mr Monti on behalf of the Commission (10 July 1997)Supplies of goods effected in Member States which are party to the North Atlantic Treaty and intended for the use of the forces of other States which are parties to that Treaty or of the civilian staff accompanying them - i.e. the transactions referred to in the third indent of Article 15(10) of the Sixth VAT Directive (77/388/EEC) ((OJ L 145, 13.6.1977. )) - may be deemed by Member States not to have satisfied the general conditions of taxation in force in the internal market in the case of means of transport, this pursuant to Article 1(4)(a) of 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 ((OJ L 105, 23.4.1983. )).If Greece makes use of this option, it follows that VAT may be charged by the Greek authorities in the case referred to by the Honourable Member.As to the other taxes connected with the registration of such means of transport in Greece, they may be charged if their users have transferred their 'normal residence' within the meaning of the above-mentioned Directive83/182/EEC to Greece and they are levied in accordance with Article 95 of the EC Treaty.The Commission would also remind the Honourable Member that Community law defines the conditions of 'normal residence' without taking any account of the nationality of the individuals in question.