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
Date: 1998-02-10
Institutions: European Commission
Subjects: free movement of goods, import, motor vehicle, tax-free allowance, vehicle registration

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.02.1998 

COM(1998)  30  final 

98/0025  (CNS) 

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. 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

I. 

INTRODUCTION: 

1. 

2. 

3. 

The  proposed  directive  is  intended  to  replace  Directive  83/182/EEC  on  tax 
exemptions  within  the  Community  for  certain  means  of  transport  imported  into 
one  Member  State  from  another1  and  Directive  83/183/EEC  on  tax  exemptions 
applicable  to permanent  imports  from  a  Member  State of  the personal  property  of 
individuals2,  as  amended  by  Directive  89/604/EEC3. 
It  therefore  has  two  main 
objectives:  firstly,  to  consolidate  and  update  the  provisions  of  the  two  directives 
being  replaced  in  the  light  of  the  internal  market  taxation  rules  and,  secondly,  to 
extend  their  provisions  to  address  problems  encountered  with  their  application 
and  to  fit  in  with  internal  market  requirements  and  expectations  on  the  freedom 
of  movement. 

The  proposed  directive  does  not  seek  to  change  radically  the  underlying  concepts 
of  the  directives  being  replaced.  It  does,  however,  attempt  to  address  situations 
where  the existing  rules  regarding  liability  to  tax  provided  for  by  those  directives 
are  considered  to  be  too  limited  in  the  context  of  the  single  market,  where  they 
give  rise  to  unreasonable  administrative  burdens  for  individuals  and  where,  in  the 
past,  they  have  been  interpreted  in  an  excessively  restrictive  manner  by  Member 
States.  It  should  be stressed  that,  on a general  level,  vehicle  taxes  have  not  been, 
the  subject  of  rules  aimed  at  approximation  at  a 
and  are  not  currently, 
Community  level,  and  reside  largely  within  the  competence  of  the  Member 
States.  The wide differences  in practice between  Member  States  in  this area  have 
been  clearly  identified  in  the  review  of  vehicle  taxation  which  has  recently  been 
taxation 
carried  out  by  the  Commission's  Directorate-General 
(DGXXI). 
Insofar  as  this  proposal  lays  down  certain  conditions  under  which 
Member  States  may  not impose  vehicle  taxes,  it  is  to  be  stressed  that  this  should 
not  be  taken  as  implying  that,  in  other  cases,  there  is  an  obligation  on  Member 
States to introduce or  to impose vehicle taxes. 

indirect 

for 

In  addition  to  the  considerations  mentioned  above,  the  proposed  directive  is 
intended  to  reflect  more  accurately  the  systems  of  taxation  of  motor  vehicles 
applied  by  Member  States  since  1 January,  1993.  Since  that  date,  the  internal 
market  rules  prohibit  the  use  of  frontier  formalities  in  the  collection  of  such 
taxes,  and  luxury  VAT  rates  are  no  longer  permitted.  Consequently,  Member 
States  largely  converted  their  excise  duties  on  motor  vehicles  into  registration 
taxes,  or  in  some  cases  introduced  new  taxes  or  modified  existing  ones  to 
compensate  for  VAT  rate  reductions.  The proposal  aims to ensure that  these new 
taxes and charges  introduced  on or after  1  January  1993 come  within  the scope of 
measures aimed  at avoiding  double taxation.  References  to exemption  from  VAT 
are  no  longer  necessary,  as  under  the  VAT  rules  applying  since  1 January  1993 
VAT  is  not  payable  in  connection  with  transfer  of  residence  or  temporary  use of 
vehicles  in  another  Member  State.  The  application  of  the  existing  directives  has 

1 
2 
3 

O.J. No. L  105, 23. 4. 83, p. 59. 
O.J. No. L  105, 23. 4. 83, p. 64. 
O.J. No. L 348, 29.  11. 89, p. 28. 

already been  repealed for  VAT purposes by Article 2 of  Directive 91/680/EEC4. 
Furthermore,  the  scope  of  the  proposed  directive  is  being  limited  to  motor 
vehicles,  reflecting  the  fact  that,  in  practise,  they  are  the  sole  type  of  property 
subject  to  taxation  and  requiring  express  rules  forbidding  the  imposition  of 
taxation  in  certain  cases.  Finally,  it  is  proposed  that  special  rules  regarding 
taxation  of  vehicles  which  move  between  Member  States  in  connection  with 
marriage or inheritance are no longer necessary. 

4.  The changes proposed  acknowledge that obstacles to free  movement of  privately 
owned vehicles from  one Member State to another are amongst the most sensitive 
issues  for  individuals  in  the  Community.  Obstacles  to  such  movement,  be  they 
fiscal  or  otherwise,  can  in  effect  be obstacles  to the  free  movement  of  persons, 
given  the  level  of  use  of  the  motor  car  as  a  preferred  means  of  transport.  At 
present  such  obstacles,  often  in  the  form  of  imposition  of  double  taxation, 
continue  to  exist  despite  the  expectations  created  by  the  advent  of  the  single 
market.  The need  for  such a proposal  has been  highlighted  by a steady  increase 
in  the  number  of  complaints  by  citizens  to  the  European  Commission, 
corresponding  increases  in  the  volume  of  petitions  to  the  European  Parliament 
and, most recently, by calls from  the High Level Panel on the Free Movement of 
Persons, chaired by Mrs. Simone Veil,  for  solutions to eliminate cases of double 
taxation of vehicles. 

5.  On  the detail  of  the  proposed  changes,  where  such  exist,  the  overall  objectives 
are  to  address  situations  which  have been  the  subject  of  repeated  complaints  to 
Parliament  and  to  the  Commission,  to  expressly  state  in  the  Directive  the 
outcome of a number of recent judgements of the Court of Justice, and generally 
to  bring  the  tax  treatment  of  vehicles  which  accompany  private  individuals 
moving  from  one  Member  State  to  another  more  in  line  with  the  concept  and 
principles of the single market. 

6.  The  measures  proposed  cover  two  broad  categories.  Firstly,  in  the  case  of 
transfers  of  residence,  it  is  proposed  that  Member  States  should  not  impose 
registration  taxes,  or  similar  taxes,  on  vehicles  brought  into  their  territory  by 
individuals  who  are  transferring  their  place  of  residence  to  their  territory  from 
another  Member  State.  This  broadly  corresponds,  in  its  effect,  to  the  aim  of 
Directive 83/183/EEC,  insofar  as that directive provided  for  an exemption  from 
taxes  on  the  importation  of  motor  vehicle  in  connection  with  a  transfer  of 
residence, with the significant  exception  that Directive 83/183/EEC did not apply 
to registration taxes. 

7.  As regards temporary  movements, the main thrust of the proposals is to ensure a 
satisfactory  continuation  of the right of an individual  to use a vehicle temporarily 
in  a  Member  State  other  than  that  in  which  he  resides,  as  provided  for  in 
Directive 83/182/EEC.  The key element here is the right  to use a vehicle  for  a 
period of  up to six months in any twelve month period.  A number  of additional 
elements  are  being  introduced,  such  as  greater  freedom  to  use  rental  cars  in 
Member  States  other  than  those  where  they  are  registered,  the  right  of  family 
members  to  use  the  vehicle,  and  greater  flexibility  concerning  the  rights  of 

O.J. No. L 376, 31.  12. 91, p. 1. 

persons  who  work  in  a  Member  State  other  than  that  where  they  reside  and 
vehicles provided by employers. 

The  proposal  also  envisages  a  greater  onus  on  the  competent  authorities  of 
Member States to communicate bilaterally  in  the event of  a dispute concerning a 
person's alleged place of residence,  and emphasises that,  in cases where national 
law is infringed,  any consequent action or sanction must be proportionate. 

In subsidiarity terms, an initiative is necessary at Community  level to ensure that, 
where  taxes  connected  with  motor  vehicles  exist  in  Member  States,  there  is  a 
common  set of  rules governing  the non-imposition  of  such  taxes in  certain  well-
defined  cases.  This  is  necessary  to  facilitate  movement  of  persons  within  the 
Community  and  to  avoid  double  taxation.  The  proposal  does  not  seek  to 
harmonise  the  taxes  which  Member  States  choose  to  implement  in  relation  to 
motor  vehicles.  Furthermore,  it does not  impede the right  of  Member  States to 
introduce  or  modify  such  taxes,  nor  does  it  undermine  national  measures  to 
It  represents  what  the 
ensure  the  satisfactory  collection  of  such  taxes. 
Commission considers to be the minimum level of regulation  at Community level 
to be consistent with the principles of the single market.  Member States are  free 
to apply more liberal rules, if they see fit. 

II.  EXPLANATION  OF THE  PROVISIONS  OF THE PROPOSED  DIRECTIVE: 

TITLE I 

General  provisions. 

Article  1. 

1.  Article  1 describes  the  situations  in  which  Member  States  shall  not  impose  taxes 

on  motor vehicles. 

1.1.  Article  1,  paragraph  1 states  that  Member  States  shall  not  impose  vehicle  taxes 
following  a  transfer  of  residence.  All  taxes  other  than  VAT  and  periodic  road 
taxes are covered. 

1.2.  Article  1,  paragraph  2  states  that  each  Member  State  shall  allow  vehicles 
registered  in  other  Member  States  to  be  used  on  its  territory  without  requiring 
payment  of  vehicle taxes.  All  taxes other  than  VAT are  covered. 

1.3.  Article  1,  paragraph  3  extends  the  provisions  of  paragraphs  1 and  2  to  normal 

spare parts,  accessories and  equipment. 

1.4.  Article  1, paragraph  4  specifies  that  VAT is not covered  by this directive. 

Article 2. 

2.  Article  2  defines  commercial  vehicle,  private  vehicle,  business  use,  private  use, 

residence and  family. 

TITLE  II 

General  rules for  determining  normal  residence 

Article 3. 

3.  Article  3  sets  out  the  general  rules  for  determining  normal  residence.  They  are 

largely  the same as those contained  in the Directives being  repealed. 

3.1.  Article  3,  paragraph  1  states  that  normal  residence  shall  be  determined  by 
reference  to the place  where  a person  usually  lives,  i.e.  for  at  least  185 days  per 
year,  because of  personal  and  professional  ties. 

3.2.  Article 3,  paragraph  2 states  that,  where a person's  professional  and  personal  ties 
are located  in  two different  Member  States,  his/her  place of  residence  shall  be  the 
Member  State  where  his/her  personal  ties  are  located,  provided  he/she  returns 
there  regularly. 

3.3.  Article  3,  paragraph  3  states  that,  where  the  professional  and  personal  ties  are 
located  in  two  different  Member  States  but  where  the  person  is  living  in  a 
Member  State to carry  out  a task  of  a definite  duration,  his/her  place of  residence 

shall  be  that  of  the  personal  ties,  irrespective  of  whether  he/she  returns  there 
regularly. 

3.4.  Article 3,  paragraph  4 states  that  attendance at a  university  or  school  in  another 

Member State shall not imply a change of residence. 

3.5.  Article  3,  paragraph  5  introduces  a  new  provision,  stating  that  a  change  in 
marital  status  does  not  automatically  imply  a  change  of  residence.  Thus,  for 
example,  a student  who marries  in  the Member  State of  his/her  studies does not 
automatically become a resident of that State. This was the essence of the Profant 
judgement of the European  Court of Justice5. 

3.6.  Article 3, paragraph 6 describes forms of evidence of normal residence. 

3.7.  Article  3,  paragraph  7  permits  Member  States  to  seek  additional  information 
from  the  individual  concerned  or  the  competent  authorities  of  other  Member 
States in cases of doubt. 

TITLE III 

Transfer  of residence 

Article 4. 

4.  Article 4  sets out  the conditions  relating  to vehicles  on  which  no tax  is payable 

following  a transfer of residence. 

4.1.  Article 4, paragraph  1  states that a vehicle must have been acquired  under normal 
taxation  rules and not be subject  to a refund  as a result of  its being transferred  to 
another  Member  State.  (A  vehicle  purchased  under  diplomatic  privelege  is 
deemed  to  satisfy  these  requirements,  as  is  a  vehicle  acquired  under  special 
arrangements  for  international  arrangements,  NATO  forces,  etc.)  The  vehicle 
must have been  used by the person  for  six  months prior  to transfer  of residence. 
It  must  also  be  transferred  not  later  than  twelve  months  after  the  transfer  of 
residence.  These  two  latter  conditions  are  largely  reproduced  from  Directive 
If a greater  degree of  approximation  of  tax  systems existed,  such 
83/183/EEC, 
provisions  should  not  be  necessary.  However,  given  the  current  wide 
discrepancies,  it is considered  that  these measures should be retained,  in order to 
prevent  excessive  erosion  of  Member  States  tax  bases  through  last  minute  tax 
avoidance  schemes.  Nonetheless,  the  restriction  on  disposal  within  12  months 
after  transfer  has been  deleted.  It is considered  that  this is too restrictive  in the 
context  of  the  single  market,  bearing  in  mind  that  the  relief  is  only  available 
where a genuine transfer  of residence is taking place. 

4.2.  Article  4,  paragraph  2  states  that  Member  States  may  increase  the  six  month 
period  of  prior  ownership  to  12 months in  the case of  vehicles  purchased  under 
diplomatic  privelege.  This  is  a  reproduction  of  a  provision  in  Directive 
83/183/EEC. 

Judgement of 03.10.1985  (Case 249/84 Ministère  Public v Profant [1985] ECR 3237) 

TITLE  IV 

Temporary  use  of  a  vehicle  in  a  Member  State  other  than  that  of 

registration 

Article 5, 

5.  Article 5 states the general  rules  under which  vehicles  may be used  temporarily  in 
a  Member  State  other  than  that  of  registration  without  payment  of  taxes  in  the 
Member  State of  temporary  use. 

5.1.  Article  5,  paragraph  1 states that  taxes  shall  not  be  imposed  where  the period  of 
temporary  use  does  not  exceed  six  months  in  any  12  months.  The  following 
conditions also apply: 
(a) 
(b) 
(c) 

the user  must have his/her  normal  residence in another  Member State; 
use must be confined  to private use; 
the vehicle must not be hired out or lent to a resident of  the Member 
State of temporary  use. 

This  is  largely  as  before,  with  the  exception  that  a  restriction  on  disposal  has 
been  removed.  Consequently,  disposal  would  be permitted,  though  of course  that 
would  mark  the  end  of  the  period  of  temporary  use,  and  final 
taxation 
arrangements  should  then  apply. 

5.2.  Article 5,  paragraph  2  increases  the  six  month  period  to  nine  months  in  the  case 
of  a  person  whose  professional  ties  are  in  a  different  Member  State  to  that  of 
his/her  normal  residence.  This  provision  is  considered  necessary  to  cater  for  the 
growing  number  of  people  who  work  during  the  week  in  one  Member  State  and 
who  only  return  at  weekends  and  holidays  to  the  Member  State  of  normal 
residence,  where  their  personal  ties  are  located.  A  period  of  nine  months  is 
considered  sufficient  to cover  the typical  amount  of  time per  year  which  a  person 
might  spend  in  another  Member  State  for  professional  reasons,  following 
deduction  of  holidays,  weekends,  etc.  Complaints  have  been  received  that 
Member  States  have  required  people  working  on  their  territory  to  register  their 
private vehicles, and pay  taxes,  once the standard  six  month  period  is exceeded 

Article 6. 

6.  Article  6  identifies  several  specific  types  of  cases  where,  although  the  general 
conditions  laid  down  in  article  5  may  not  be  satisfied,  taxation  may  not  be 
imposed  in the Member  State of temporary  use. 

6.1.  Article  6,  indent  (a) allows  re-rental  of  a  rental  vehicle,  which  is  in  the  Member 
State as a  result  of  a  rental  contract  ending  there,  to a  non-resident  for  up  to  two 
months,  or  for  up  to  thirty  days  longer  if  it  is  to  be  removed  from  the  State 
during  the  rental  period. 
It  also  allows  rental  to  a  resident  with  a  view  to 
removal  within  fifteen  days.  These  are  new  provisions,  which  are  intended  to 
overcome  practical  problems  that  can  arise  when  a  rental  contract  ends  in  a 
Member  State other  than  that  in which  the contract  commenced,  and  should  allow 
better  fleet  management  for  car  rental  companies.  The  existing  provision, 
allowing  an  employee  of  the  rental  company  to  repatriate  the  vehicle,  even  if  the 
employee is a resident of  the Member  State of  temporary  use,  is also  reproduced. 

7 

6.2.  Article 6,  indent  (b) permits  use of  a vehicle  rented  in  and  registered  in  another 

Member State, subject to a maximum of eight days. 

6.3.  Article 6,  indent (c) allows members of the user's family  to use the vehicle while 
the  user  is  in  the  Member  State.  This  is  a  new  provision,  to  reflect  the  reality 
which can arise regarding  shared use of a motor vehicle within a family  unit. 

6.4.  Article 6,  indent (d) allows  use by any person  when  the person  who brought the 
vehicle  to  the  Member  State  is  on  board.  Similarly,  this  is  intended  to  reflect 
situations  which  can  often  arise  whereby  the person  who brought  the  vehicle  to 
the Member State of  temporary  use may not wish to be the driver all of the time. 
He must be on board,  however,  unless the driver is a member of his/her  family. 

6.5.  Article 6,  indent (e) allows a person  to return  to his/her  Member State of normal 
residence with  a vehicle  registered  in  another  Member  State,  where his/her own 
vehicle has become immobilised  in that State.  Exemption  is limited  to the period 
during which his/her vehicle is under repair,  and is subject  to a maximum period 
of  two months. 

6.6.  Article  6,  indent  (f)  allows  an  employee  to  use  in  the  Member  State  of  his/her 
normal  residence  a  vehicle  provided  by  his/her  employer,  located  in  another 
Member  State.  The  Member  State  in  which  the  employee  is  resident  cannot 
impose taxes, and there is no time limit.  This provision  is a logical  consequence 
of  the  Court  of  Justice  judgement  in  the  Ledoux  case6  which  found  that 
exemption  from  VAT was  warranted  in  such  circumstances,  taking  into account 
the principle  of  free  movement  of  workers:  the case did  not  specifically  address 
taxes other than  VAT.  It is also proposed  that both professional  and private use 
should be allowed, as should  use by family  members. 

6.7.  Article  6,  indent  (g)  permits  unlimited  use  of  their  own  vehicles  by  persons 
whose journey  to  and  from  work  involves  travelling  to  another  Member  State. 
This provision already exists in Directive 83/182/EEC. 

6.8.  Article 6,  indent (h) provides that students may use, in the Member State of their 
studies,  vehicles  registered  in  their  Member  State  of  normal  residence.  This 
provision already exists in Directive 83/182/EEC. 

Article 7. 

7.  Article 7 governs temporary business use of a private vehicle. 

7.1.  Article 7, paragraph  1 states  the conditions  under  which  Member States  may not 
impose  taxes on  private  vehicles  temporarily  on  their  territory  for  business use. 
These  are  that  the  user  must  be  non-resident,  the  vehicle  must  not  be  used  to 
carry passengers commercially or to carry goods, the vehicle must not be hired or 

Judgement of 06.07.1988  (Case  127/86 Ministère  Public  v Ledoux  11988] ECR 3741) 

lent and it must have been  registered  and subject to taxation  in the Member State 
of residence of the user.  The non-resident  requirement does not apply in the case 
of  an employee  using a vehicle  provided  by  the employer,  established  in another 
Member  State.  As  for  article  5,  the  existing  prohibition  on  disposal  is  being 
dropped. 

7.2.  Article  7,  paragraph  2  specifies  theat  this  provision  shall  not  be  subject  to  any 
time  limit.  This  is  considered  appropriate  in  the context  of  the  internal  market, 
and  is  not  expected  to  pose  any  significant  threat  to  Member  States'  revenues. 
Previously it was seven months for certain users and six for others. 

Article 8. 

8.  Article  8  states  that taxes  shall  not be  sought  in  the  Member  State of  temporary 
use where,  during a period of  legitimate  temporary  use,  a vehicle is damaged and 
where  the  cost  of  repair  exceeds  the  value  of  the  vehicle.  This  is  a  logical 
provision,  to  cater  for  unforeseen  problems  which  can  arise  as  a  result  of 
accident,  breakdown  etc.  The  vehicle  must  be  disposed  of  for  scrapping 
purposes.  This  provision  is  intended  to  ensure  that  the  vehicle  does  not  end  up 
being used again. 

Article 9. 

9.  Article  9  deals  with  vehicles  which  will  be  used  by  non-residents  for  periods 

exceeding  those laid down in this proposal. 

9.1.  Article 9,  paragraph  1 requires Member States to register such vehicles. 

9.2.  Article  9,  paragraph  2  allows  Member  States  which  register  such  vehicles  to 

impose their normal tax rules on such vehicles. 

9.3  Article 9,  paragraph  3 allows  Member States to prohibit  use by their residents of 

such vehicles on their territory. 

TITLE V 

Final provisions 

Article  10. 

10.  Article  10 is concerned with  infringements and related sanctions. 

10.1. Article  10,  paragraph  1 states  that  Member  States  shall  not  deem  a  vehicle  to 
have been  brought  to  their  territory  permanently  where  it  does  not  comply  with 
the  provisions  of  this  directive.  Breach  of  the  rules  governing  temporary  use 
should  not  automatically  result  in  tax  becoming  due.  The  purpose  of  this 
provision  is  to provide  a choice  for  the individual  concerned  whether  to pay  the 
tax  sought  or  to  remove  the  vehicle  from  the  Member  State  without  payment  of 
tax. 

10.2. Article  10,  paragraph  2  provides  that  any  sanctions  to  be  applied  should  take 
account of  whether the person concerned  has acted in good  faith and whether any 
intention of fraud exists. 

10.3. Article  10, paragraph 3 states that sanctions imposed  must not be disproportionate 
to  the  seriousness  of  the  infringement.  This  takes  account  of  consistent 
jurisprudence  of  the European  Court of  Justice7  in  which  it has  been  held  that if 
measures adopted to prevent tax fraud are not excessive,  they are compatible with 
the principle of free movement of goods and persons. 

Article  11. 

11.  Article  11  states  that,  where  a  used  vehicle  is  brought  into  a  Member  State  in 
circumstances  other  than  those  covered  by  this  directive,  and  that  Member  State 
imposes  a  registration  tax  or  similar  tax,  the  amount  of  tax  must  not  exceed  the 
residual  tax  contained  in  the  value  of  a  similar  car  on  the domestic  market  of  the 
Member  State  in  question.  This  simply  puts  into  the  directive  a  principle  which 
has been  established  by  the  Court  of  Justice8,  based  on  the correct  application  of 
article 95 of  the Treaty.  The  situation  could  arise,  for  example,  where a  resident 
of a  Member  State chooses  to buy  a  used  car  in  another  Member  State,  or  where 
a  person  transfers  his/her  residence  but  does  not  fulfil  all  the  conditions 
prescribed in this directive. 

Article  12. 

12.  Article  12 imposes  on  Member  States  the obligation  to cooperate  with  each  other 

where difficulties  arise in the application of the Directive. 

12.1  Article  12,  paragraph  1 states  that  Member  States  shall  take decisions  by  mutual 

agreement. 

12.2. Article  12,  paragraph  2  states  that  where  a claim  regarding  a  person's  place  of 
normal  residence  is  disputed,  the competent  authorities  of  the  Member  States  in 
question must consult with each other to resolve the matter.  In addition,  tax shall 
not be imposed  in  the Member  State to which  a person  claims  to be  transferring 
residence,  or  claims  to  be  using  temporarily  a  vehicle  registered  in  another 
Member  State,  pending  the  outcome  of  such  consultations.  This  provision  is 
necessary  to  ease  the  burden  of  proof  on  the  individual,  and  to  avoid  him/her 
being exposed to difficulties  as a result of  matters beyond his/her control. 

12.3. Article  12,  paragraph  3  states  that,  where  no  agreement  is  reached,  the  matter 
shall be referred  to the Commission,  which  shall  issue a decision  on  the place  of 

Judgement of 09.10.1980  (Case 823/79 ( arciali|  19801 ECR 2773, pi. 9) 
Judgement or 25.02.1988 (Oise 299/86 Dn-xl 11988| ECR  1213, pt.  18) 
Judgement  of  14.12.1995 (Case 387/90 lionchero 11995| ECR 4663 pt. 58) 
Judgement of  11.12.1990 (Case 47/88 C 'ommission v Denmark  (19901 ECR 4509) 
Judgement of 09.03.1995 (Case 345/93 Nuhes Tadeu [1995]  ECR 479) 

10 

residence  to  be  used  for  the  purposes  of  taxing  the  vehicle.  Such  a  decision 
would obviously be open to challenge in the European Court of Justice. 

Article 13, 

13.  Article  13 repeals directives 83/182/EEC and 83/183/EEC. 

H 

Proposal  for  a Council Directive governing the tax treatment  of private motor 
yehicles movzû  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. 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the Treaty  establishing  the  European  Community,  and  in  particular 
Article 99 thereof, 

Having regard to the proposal  from  the Commission, 

Having regard to the opinion of the European  Parliament, 

Having regard  to the opinion  of the Economic and Social Committee, 

[Recital #1] 
Whereas, in the single market,  tax obstacles to the free  movement of  persons and their 
personal property,  including motor vehicles, should be removed; 

[Recital #2] 
Whereas,  at  present,  Community  law  regarding  the  tax  treatment  of  private  motor 
vehicles  used  temporarily  in  a  Member  State  other  than  that  in  which  they  are 
registered  is  unnecessarily  restrictive  in  the  context  of  the  principles  of  the  single 
market; 

[Recital #3] 
Whereas,  furthermore,  present  Community  law  covering  the  tax  treatment  of  motor 
vehicles belonging  to persons transferring  residence from  one Member State to another 
can place an unnecessary administrative burden on such persons to prove that a liability 
to pay tax does not exist; 

[Recital #4] 
Whereas,  accordingly,  the  terms  of  the  exemptions  provided  by  Council  Directive 
83/182/EEC  on  tax  exemptions  within  the  Community  for  certain  means  of  transport 
temporarily  imported  into  one  Member  State  from  another9  and  Council  Directive 
83/183/EEC  on  tax exemptions  applicable  to permanent  imports  from  a Member  State 
of  the  personal  property  of  individuals10  do  not  reflect  the  present  needs  concerning 
free circulation of persons and of goods; 

[Recital #5] 
Whereas,  in  any  event,  Directives  83/182/EEC  and  83/183/EEC  no  longer  accurately 
cover  the  systems  of  taxation  of  motor  vehicles  applied  by  Member  States  since  the 
introduction  of  the  single  market;  whereas  their  application  to  exemption  from  VAT 
has  already  been 
repealed  by  Article  2  of  Council  Directive  91/680/EEC 
supplementing  the  common  system  of  value  added  tax  and  amending  Directive 

9 
10 

O.J. No. L  105, 23. 4. 83, p. 59. 
O.J. No. L  105, 23. 4. 83, p. 64. 

12 

77/388/EEC  with  a  view  to  the  abolition  of  fiscal  frontiers11;  whereas,  in  practice, 
problems concerning  taxation  of  property  following  a transfer  of  residence  are  confined 
to motor vehicles and  it  is thus  no  longer  neceessary  to  lay  down  rules  for  other  goods; 
whereas permanent exemptions other  than  in connection  with  transfer  of  residence  need 
no longer be provided  for; 

Whereas,  however,  abuses  caused  by  the differing  levels  of  taxation  of  motor  vehicles 
between  Member  States  should  be  prevented;  whereas,  therefore,  it  is  still  necessary  to 
provide  for  certain  restrictions  on  temporary  use  by  residents  of  vehicles  registered  in 
other  Member  States; 

[Recital  #7] 
Whereas,  therefore,  the provisions  of  Directives  83/182/EEC  and  83/183/EEC  require 
updating  and  these directives  should  be  repealed  and  replaced  by  a  single,  consolidated 
directive; 

[Recital  #8] 
Whereas  Member  States  should  not  charge  taxes  on  private  motor  vehicles  moved  to 
their  territory  from  other  Member  States  by  individuals  transferring  residence  from 
such  Member  States; 

[Recital  #9] 
Whereas  Member  States  should  not charge taxes on  private  motor  vehicles  registered  in 
other  Member  States  where  such  vehicles  are  used  temporarily  on  their  territory,  in 
certain  defined  circumstances; 

[Recital  #10] 
Whereas  for  the  purposes  of  determining  liability  to  tax  it  is  necessary  to  define  the 
place of  normal  residence of the vehicle  user; 

[Recital  #11] 
Whereas  in  the  case  of  transfer  of  residence,  no  tax  should  be  payable  in  the  new 
Member  State,  subject  to certain  conditions and  provided  the vehicle  has been  acquired 
in accordance with  the tax  rules of  the first  Member  State; 

[Recital  #12} 
Whereas  temporary  use  in  another  Member  State  without  payment  of  taxes  should  be 
permittee  for  a  period  of  six  months  in  any  twelve;  whereas,  in  the  case  of  a  person 
whose  professional  ties  are  in  another  Member  State,  this  should  be  increased  to  nine 
monthi; 

[Recital  #13] 
Whereas  it  is  necessary,  in  the  interests  of  the  internal  market,  to  introduce  some 
flexibility  concerning  the  use  of  rental  vehicles  in  Member  States  other  than  that  of 
registration,  subject  to  certain  conditions;  whereas,  furthermore,  it  is  necessary  to 
expressly  provide  for  use  of  vehicles  by  certain  persons  other  than  the  owner,  and 

11 

O.J. No. L 376, 31.  12. 91, p.  1. 

13 

whereas  it  is  necessary,  in  certain  circumstances,  to  allow  use  by  a  resident  of  a 
Member State a vehicle registered  in another Member State; 

[Recital  #14] 
Whereas  it  is  necessary  to  provide  rules  governing  the  temporary  use  of  a  private 
vehicle in another Member State for business purposes; 

[Recital  #15] 
Whereas  vehicles  which,  during  temporary  use  in  another  Member  State,  are 
irretrievably  damaged should not incur liability  to taxation as a result; 

[Recital  #16] 
Whereas  persons  who  wish  to  use  vehicles  in  a Member  State other  than  that  of  their 
place  of  residence  should  be  entitled  to  register  vehicles  in  such  Member  States; 
whereas,  in  such  cases,  taxes  shall  be  payable  in  the  Member  State  of  registration; 
whereas,  furthermore,  the Member State of  residence of  the owner  may prohibit use of 
such vehicles on its territory; 

[Recital  #17] 
Whereas,  in  cases  where  infringements  of  the  rules  are  encountered,  any  sanctions 
imposed shall be proportionate to the offence; 

[Recital  #18] 
Whereas,  in  cases  where  Member  States  are  entitled  to  impose  registration  or  similar 
taxes on used vehicles arriving  from  other Member States,  they shall  ensure that the tax 
charged  does  not  exceed  the  residual  amount  of  tax  contained  in  the  value  of  similar 
vehicles on the domestic  market,  in accordance with article 95 of the Treaty; 

[Recital  #19] 
Whereas,  in cases  of  dispute,  the competent  authorities  of  the  relevant  Member  States 
shall  consult  with  each  other;  whereas,  furthermore,  in  such  cases  tax  should  not  be 
imposed  pending  the  outcome  of  such  consultations  by  the  relevant  competent 
authorities;  whereas if no agreement is  reached  between  the competent authorities,  the 
Commission  should decide on the matter; 

HAS ADOPTED THIS DIRECTIVE: 

14 

TITLE I 

GENERAL PROVISIONS 

Article 1 

Prohibition on imposing taxes in certain circumstances 

1. 
A Member  State shall  not  impose excise duties,  registration  taxes and/or  other 
consumption taxes, such as the taxes listed in Annex I, but excluding the taxes listed in 
Annex II, on private motor vehicles registered in other Member States and brought into 
that Member State permanently  in connection with the transfer of normal residence of a 
private  individual  from  another  Member  State,  subject  to  the  conditions  laid  down 
below. 

2. 
A  Member  State  shall  not  impose  excise  duties,  registration  taxes,  other 
consumption  taxes and/or road taxes, such as the taxes listed  in Annex  I and  Annex II, 
on  private  motor  vehicles  registered  in  other  Member  States and  used  temporarily  on 
its territory,  subject to the conditions laid down below. 

The provisions of paragraphs  1  and 2 shall also apply to the normal  spare parts, 

3. 
accessories and equipment of the motor vehicle. 

4. 

This Directive shall not apply to value added tax. 

Article 2 

Definitions 

For the purposes of this Directive: 

"commercial  vehicle"  means  any  road  vehicle  which,  by  its  design  or 

(a) 
equipment, is suitable for and intended  for transporting, whether for payment or not: 

-  more than nine persons, including the driver, 
-  goods, 

as well as any road vehicle for special use other than transport as such; 

"private vehicle" means any road vehicle, including its trailer,  if any, other than 

(b) 
a commercial vehicle; 

"business use" of a motor vehicle means the use thereof  in the direct exercise of 

(c) 
an activity carried out for consideration or financial  gain; 

(d) 

"private use" means any use other than business use; 

(e) 

"residence" means normal residence as defined  in Article 3; 

15 

a  person's  "family"  shall  be  deemed  to  mean  his  spouse,  his  immediate 

(0 
ancestors and descendants and those of his spouse. 

TITLE II 

NORMAL RESIDENCE 
Article 3 

General rules for determining normal residence 

1. 
For the purposes of this Directive,  "normal residence"  means the place where a 
person  usually  lives,  that  is  for  at  least  185 days  in  each  calendar  year,  because  of 
personal  and  occupational  ties  or,  in  the  case  of  a  person  with  no  occupational  ties, 
because  of  personal  ties  which  show  close  links  between  that  person  and  the  place 
where  he is living. 

Notwithstanding  paragraph  1,  the  normal  residence  of  a  person  whose 
2. 
occupational  ties are in a different  place from  his personal  ties, and who consequently 
lives  in  turn  in  different  places  situated  in  two  or  more  Member  States,  shall  be 
regarded  as  being  the  place  of  his  personal  ties,  provided  that  he  returns  there 
regularly. 

3.  Where a  person  is  living  in  a  Member  State  in  order  to carry  out  a  task  of  a 
definite duration,  and as a result  has his occupational  ties in a different  place from  his 
personal ties, his place of residence shall be regarded as being the place of his personal 
ties, irrespective of whether he returns there regularly. 

Attendance  at  a  university  or  school  in  another  Member  State  shall  not  imply 

4. 
transfer of  normal residence. 

A  change  in  a  person's  marital  status  shall  not,  of  itself,  imply  a  change  of 

5. 
residence. 

Individuals  shall  give  evidence  of  their  place  of  normal  residence  by  any 

6. 
appropriate means, such as their identity card or any other valid document. 

7.  Without prejudice to Article  12, where the competent authorities of the Member 
state of destination  have doubts as to the validity of a statement as to normal  residence 
made in  accordance  with  this  Article,  or  for  the purpose  of  certain  specific  controls, 
they may request additional  information  or evidence either  from  the individual  making 
the statement or from  the competent authorities of the other Member State concerned. 

16 

TITLE III 

TRANSFER OF RESIDENCE 

Article 4 

Conditions under which tax  is not payable following a transfer  of residence 

The provisions  of  Article  1 (1)  shall  apply  where  the  following  conditions  are 

1. 
fulfilled: 

(a)  the  motor  vehicle  has  been  acquired  under  the  general  conditions  of  taxation  in 
force in the domestic  market of one of the Member  States and  is not  subject,  as a 
result  of  its  being  brought  to  another  Member  State,  to  any  exemption  from  or 
refund  of  any of  the  taxes  referred  to  in  Article  1(1)  in  the  Member  State  from 
which it is brought. 

These two conditions shall be deemed  to be fulfilled  if the vehicle bears a standard 
registration  plate of the Member State of registration,  all  types of  temporary  plate 
being excluded. 

For  the  purposes  of  this  Directive,  the  general  conditions  of  taxation  shall  be 
deemed  to  include diplomatic  and  consular  arrangements,  agreements  concerning 
international  organisations  and  their  members,  arrangements  governing  forces 
which  are  party  to  the  North  Atlantic  Treaty  or  the  civilian  staff  accompanying 
them. 

(b) 

the person  transferring  residence has had the use of  the vehicle for  a period  of at 
least six months prior to the transfer  of residence; 

(c)  the motor vehicle is brought  into the  Member  State to which  the person  transfers 

his residence not later than  12 months after  such  transfer. 

In the case of vehicles acquired  under the diplomatic and consular arrangements 
2. 
or other arrangements mentioned  in the third indent of paragraph  1 (a),  Member States 
may increase the period  mentioned  in paragraph  1  (b) to  12 months. 

17 

TITLE IV 

TEMPORARY  USE OF A VEHICLE 

Article 5 

General conditions under which tax is not payable when a vehicle is used 
temporarily in a Member State other than that of registration 

1. 
The provisions  of  Article  1 (2)  shall  apply  in  respect  of  a  motor  vehicle  used 
temporarily  in a Member  State,  other  than  the Member State in which  it is registered, 
for a period,  continuous or otherwise,  of  not  more than  six  months in any  12 months, 
provided that: 

(a)  the person using the vehicle has his normal residence in a Member State other than 

the Member State of temporary use; 

(b)  the vehicle is only the subject of private use; 

(c)  the  vehicle  is  not  hired  out  in  the  Member  State  of  temporary  use,  or  lent  to a 

resident of that State, other than as provided for in Article 6. 

The period  of  six  months  referred  to in paragraph  1 shall  be increased  to nine 
2. 
months in the case of a person  whose occupational  ties are not in the Member  State of 
his  normal  residence  and  who  uses  in  the  Member  State  of  his  occupational  ties  a 
vehicle registered in the Member State of his normal residence. 

Article 6 

Specific cases of private  use where taxation is not permitted 

In addition to the cases covered by Article 5, the provisions of Article  1  (2) shall apply 
in respect of the following cases: 

(a)  a  private  vehicle  belonging  to  a  car  rental  firm,  where  that  vehicle  is  in  the 
Member State of temporary  use as a result of a rental contract which ended in that 
Member State and which: 

is  re-rented  to  a  person  other  than  a  resident  of 

(aa) 
the  Member  State  of 
temporary use, subject to the limitation  that the period of any such re-renting must 
terminate within  two  months of  the end-date of  the original  contract  under which 
the vehicle  was returned  to the car  rental  firm  in  the current  Member State,  save 
where the vehicle is re-rented  to a non-resident with a view to being removed  from 
that State within thirty days from  the date of the new rental period; 

(bb)  is re-rented  to a resident  of  the  Member  State of  temporary  use with a view 
to  being  removed  from  that  State  within  fifteen  days  from  the  beginning  of  the 
new rental period, or 

18 

(ce)  is returned by an employee of the car rental  firm  to the country  where it was 
originally  rented even  if such employee resides in the Member State of  temporary 
use; 

(b)  a private vehicle registered  in another  Member  State and  rented  from  a car rental 
firm  under a rental contract  which commenced  in that Member State by a resident 
of the Member State of temporary  use, subject to a limit of eight days use; 

(c)  a private  vehicle  used,  while  the person  who brought  the vehicle  to  the  Member 
State  of  temporary  use  is  in  that  Member  State,  by  members  of  his  family, 
whether  or  not  such  family  members  have their  normal  residence  in  the  Member 
State of temporary use; 

(d)  a  private  vehicle  used  by  any  person,  provided  that  the  person  who  brought  the 

vehicle to the Member State of temporary use is also on board the vehicle; 

(e)  a private vehicle registered  in another  Member State and used by a resident of the 
Member State of temporary  use following  temporary  immobilisation  of his vehicle 
as a result of breakdown  or accident  in the other Member State,  where such  use is 
confined  to the period during which the user's own vehicle is being repaired and in 
any event does not exceed a maximum period of two months; 

(f)  a private vehicle registered  in another  Member  State which  belongs  to or  is hired 
by  an  undertaking  established  in  the  Member  State  in  which  it  is  registered  and 
which  is used by an employee of  such  undertaking,  or by a  member of  the  family 
of  such employee,  where such  user  has his normal  residence in  the Member State 
of temporary use. This category shall not be subject to any time limit; 

(g)  a private vehicle registered  in the country of normal  residence of the user and used 
regularly  for  the  journey  from  his  residence  to  his  place  of  work  in  another 
Member State, and vice versa. This category shall not be subject to any time limit; 

(h)  a private vehicle registered  in the Member State of his normal residence used by a 
student  in  the  Member  State  in  which  he  is  pursuing  his  studies,  where  such 
Member State is not that of his normal residence. 

Article  7 

Cases of business use where taxation is not permitted 

1.  A Member  State shall  not  impose the  taxes  specified  in  Article  1(2) on  a  private 
vehicle used temporarily on its territory for business purposes, provided that: 

(a)  the person using the vehicle has his normal residence in a Member State other than 

the Member State of temporary use; 

This condition need not apply in the case of a person who has his normal residence 
in  the  Member  State of  temporary  use,  where  that  person  is  an  employee  of  an 

-19 

undertaking  established  in  another  Member  State  and  is  using  a  vehicle  which 
belongs  to or  is hired  by  that  undertaking  and  which  is  registered  in  the Member 
State where the undertaking is established. 

(b)  the vehicle is not used in  the  Member  State of  temporary  use to carry  passengers 
for  hire  or  material  reward  of  any  kind,  or  for  the  industrial  and/or  commercial 
transport of goods, whether for  reward or not; 

(c)  the vehicle is not hired out or lent in the Member State of temporary use; 

(d)  the vehicle is registered in the Member State of normal residence of the user; 

(e)  the  vehicle  has  been  acquired  under  the  general  conditions  of  taxation  of  the 
Member State of  normal  residence  of  the user and  is not  subject  to any  refund  of 
any of the taxes referred  to in  Article  1 (2) by virtue of  its being  used  in  another 
Member State. 

This  condition  shall  be  deemed  to  be  satisfied  if  the  vehicle  bears  a  standard 
registration  plate of the Member State of registration,  all  types of  temporary  plate 
being excluded; 

(f)  any periodic  vehicle  taxes ordinarily  payable  in  the  Member  State of  registration 

are paid. 

2. 

The provisions of paragraph  1  shall apply without any time limit. 

Article 8 

Provisions concerning irreparable damage to vehicles 

Where  a  private  vehicle  registered  in  another  Member  State  is  used  temporarily  in  a 
Member State without  imposition  of  the taxes referred  to in  Article  1(2) in  accordance 
with  the  provisions  of  this  directive,  and  that  vehicle  becomes  badly  damaged  as  a 
result of a duly proven  accident,  breakdown  or criminal  or  malicious  act  which  occurs 
within  that  Member  State,  where  the cost  of  the  requisite  repairs  exceeds  the  market 
value  of  the  vehicle,  and  where  the  vehicle  is  disposed  of  with  a  view  to  being 
scrapped or destroyed,  no subseqeunt demand  for any of the taxes referred  to in article 
1(2)  shall be made by  the Member  State of  temporary  use. The competent  authorities 
of Member States may require proof of the damage and/or of the proper disposal of the 
vehicle. 

Article 9 

Permanent use in a Member State other than that of normal residence 

1.  Where a person  wishes  to  use a  vehicle  in  a  Member  State  other  than  that in 
which  he has his place of  normal  residence  for  a period  in excess of  that provided  for 

20 

in article 5, for example on an ongoing basis in connection  with a secondary residence, 
the Member State in question shall register such vehicle. 

2.  Where  the  provisions  of  paragraph  1 apply,  the  Member  State  of  registration 
shall be entitled to impose such taxes as would ordinarily be payable in connection with 
and following  registration of such vehicle. 

3. 
The Member State in which  the owner of a vehicle as described  in paragraph 1 
has  his  place  of  normal  residence  may  refuse  to  allow  use  of  such  vehicle  on  its 
territory. 

TITLE V 

FINAL PROVISIONS 

Article  10 

Infringements and sanctions 

1.  Where a  vehicle  is  used  in  a  Member  State  temporarily  and  the provisions of 
this  Directive  are  not  complied  with,  such  vehicle  shall  not  be deemed  to  have been 
brought to that Member State permanently, and taxes shall not automatically be deemed 
to be payable.  In  such  instance,  notwithstanding  any  sanctions applied,  the individual 
concerned  may  choose  either  to  remove  the  vehicle  from  the  Member  State  of 
temporary  use or  to  have  it  registered,  and  to  pay  taxes,  in  the  normal  way  in  that 
Member State. 

In applying  sanctions,  Member  States shall  take into account  the good  faith  of 

2. 
the individuals concerned and the absence of any intention of  fraud. 

3. 
The  control  procedures  applied  by  the  competent  authorities  of  the  Member 
States shall not be framed  in such a way as to restrict the free  movement of goods and 
persons  required  by  the  Treaty.  In  cases  where  the  provisions  of  this  Directive  are 
infringed,  penalties  shall  not  be  so disproportionate  to  the  gravity  of  the  infirgement 
that they become an obstacle to the free  movement of goods and persons. 

Article  11 

Calculation of tax, where payable 

In cases where a used motor vehicle is brought permanently  from  one Member State to 
another,  in  circumstances  other  than  those  governed  by  this  Directive,  and  the  latter 
Member State imposes a registration  tax or similar tax such as the taxes listed  in Annex 
I  on  that  vehicle,  the  Member  State  in  question  shall  ensure  that  the  amount  of  tax 
charged  shall not be greater than the amount of  residual  tax contained  in the value of a 
vehicle  of  similar  age,  characteristics  and  condition  on  the  domestic  market  of  that 
Member State. 

21 

Article  12 

Seulement  of  disputes 

Where  the  practical  application  of  this  Directive  gives  rise  to  difficulties,  the 
1. 
competent  authorities  of  the  Member  States  concerned  shall  take  the  necessary 
decisions by  mutual  agreement. 

2. 
In  particular,  where  a  person  claims  to  have  transferred  his  place  of  normal 
residence  from  one  Member  State  to  another,  and  that  claim  is  disputed  by  the 
competent  authorities  of  either  of  those  states,  the  competent  authorities  of  both  States 
shall  consult  each  other  to  decide  which  place  of  residence  should  be  used  for  the 
purposes  of  deciding  where  the  vehicle  should  be  subject  to  taxation.  Similarly,  where 
a  person  claims  to be  using  a  vehicle  temporarily  in  one  Member  State  whilst  his  place 
of  normal  residence  is  in  another  Member  State,  and  that  claim  is  disputed  by  the 
competent  authorities  of  the  Member  State  in  which  the  vehicle  is  being  used,  the 
competent  authorities  of  both  States  shall  consult  each  other  to  decide  which  residence 
should  be  used  for  the purposes  of  taxing  the  vehicle.  The  Member  State  to  which  the 
user  claims'to  have  transferred  his  normal  residence,  or  in  which  he claims  to be  using 
the  vehicle  temporarily,  shall  not  impose  the  taxes  referred  to  in  article  1 pending  the 
outcome of  such  consultations. 

If  Member  States  do  not  come  to an  agreement  within  six  months  of  the date of 
3. 
the claim  by  the individual  concerned,  they  shall  refer  the question  to the  Commission. 
The  Commission,  after  having  examined  the  arguments  put  forward  by  the  two 
Member  States  and,  if  the  Commission  considers  it  appropriate,  by  the  individual 
concerned,  will  issue  a  decision  establishing  which  residence  shall  be  used  for  the 
purposes of  taxing  the vehicle. 

Article 13 

Repeals 

The  following  directives  shall  cease to have effect  on  1  July  1998: 

Directive  83/182/EEC, 

Directive  83/183/EEC as amended  by Directive  89/604/EEC. 

Article  14 

Implementation  of the  Directive 

1. 
users 

Member  States  may  retain  or  introduce  provisions  which  are  more favourable  to 
than  those  laid  down  in  this  Directive,  in  order  to  allow  temporary  use  of 

22 

vehicles  registered  in  other  Member  States,  or  permanent  transfer  of  vehicles  from 
other  Member  States,  without  imposition  of  the taxes referred  to in  Article  1. 

2. 
the 
Member  States  may  not,  by  virtue  of  this  Directive,  apply  within 
Community  tax  treatment  which  is  less  favourable  than  that  applied  in  connection  with 
imports or  use of  vehicles brought directly  from  third  countries. 

3. 
Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative 
provisions  necessary  to  comply  with  this  Directive  by  1 July  1998.  Member  States 
shall  forthwith  inform  the Commission  thereof. 

When  Member  States  adopt  these  measures,  they  shall  contain  a  reference  to  this 
Directive  or  shall  be  accompanied  by  such  reference  on  the  occasion  of  their  official 
publication.  The methods  of  making  such  reference  shall  be laid  down  by  the  Member 
States. 

Member  States  shall  communicate  to  the  Commission  the  texts  of  the  main 

4. 
provisions of  national  law which  they  adopt in the field  governed  by this  Directive. 

Article 15 

Addressees 

This Directive is addressed  to the Member States. 

Done at Brussels 

For the Council 
The President 

23 

Annex I 

BELGIUM 

Taxe de mise en  circulation 

DENMARK 

Registreringsafgift  af  motorkoretojer 

GERMANY 

GREECE 

Special  Consumption  Tax  (EFK) 
Registration  Tax  (EPET) 

SPAIN 

Impuesto  Especial  sobre Determinados Medios de Transporte 

FRANCE 

Taxe sur les certificats  d'immatriculation  des véhicules à moteur 

IRELAND 

Vehicle Registration  Tax 

ITALY 

IET 
APIET 

LUXEMBOURG 

NETHERLANDS 

Belastung Personenauto's en  Motorrijwielen 

AUSTRIA 

Normverbrauchsabgabe 

PORTUGAL 

Imposto  Automovel 

FINLAND 

Autovero 

SWEDEN 

Sales tax 

UNITED  KINGDOM 

24 

Annex  II 

BELGIUM 

Taxe de circulation  sur  les véhicules automobiles/Verkeersbelasting  op de  autovoertuigen 
Taxe compensatoire des accises/ 
Taxe de circulation  complémentaire/ 

DENMARK 

Vaegtafgift  af  motorkoretojer 

GERMANY 

Kraftfahrzeugsteuer  (Kraftfahrzeugsteuergesetz  -  1979) 
Kraftfahrzeugsteuer  (Durchfuhrungsverordnung  -  1979) 

GREECE 

TEXT]  KUKAOlt>Opl(XÇ 

SPAIN 

Impuesto sobre vehiculos de traccion  mecanica 
Tributos  Locales sobre circulacion  de vehiculos  automoviles 

FRANCE 

Taxe différentielle  sur les véhicules à moteur 
Taxe sur les véhicules des sociétés 

IRELAND 

Motor vehicle excise duties 

ITALY 

Tassa sulla circolazione degli  autoveicoli 

LUXEMBOURG 

Taxe sur les véhicules  automoteurs 

NETHERLANDS 

Motorrijtuigenbelasting 

AUSTRIA 

Kraftfahrzeugsteuer 

PORTUGAL 

Imposto municipal  sobre veiculos 
Imposto de circulacâo 

FINLAND 

Moottoriajoneuvovero 
Windscreen  sticker tax 

SWEDEN 

Vagtrafikskatt 

UNITED  KINGDOM 

Vehicle excise duty 

25 

STATEMENT OF IMPACT ON SMALL AND MEDIUM ENTERPRISES 

The proposed  directive  seeks to  simplify  the conditions  and procedures  relating  to the 
movement  of  private  motor  vehicles,  either  temporarily  or  permanently,  between 
Member States, and is a logical consequence of the introduction of the single market. 

1. 

Administrative obligations on firms as a result of enactment of the 
legislation: 

None. 

2. 

Advantages for businesses: 

The  proposals  include  a  number  of  provisions  which,  in  certain 
circumstances, allow a resident of a Member State to use in his Member 
State of normal  residence a hire-car registered  in another Member State. 
This will facilitate better fleet  management for car-hire firms. 

The proposals contain  provisions improving  the rights of persons whose 
place of employment is in a Member State other than that of their normal 
residence  to  use  in  the  latter  Member  State  a  car  provided  by  their 
improvement  for  employees  should  have  a 
employer.  Such  an 
consequent benefit  for employers. 

3. 

Disadvantages for businesses: 

None. 

4. 

Effect  on employment. 

No major effect  on employment anticipated. 

5. 

Consultations with social partners. 

No. 

6. 

Is there an alternative,  less binding, approach? 

The proposals are considered to be the minimum necessary to address the 
underlying problems and to be compatible with the single market. 

26 

ISSN 0254-1475 

COM(98) 30  final 

DOCUMENTS 

EN 

09  07  06  16 

Catalogue number  :  CB-CO-98-031-EN-C 

ISBN  92-78-30303-8 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

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