WRITTEN QUESTION No. 2129/98 by Felipe CAMISÓN ASENSIO to the Commission. Taxation of electronic commerce
Date: 1998-07-10
Institutions: CAMISON ASENSIO, European Parliament
Subjects: VAT, distance selling, indirect tax, international trade, tax system, trade regulations

C 96/42

Official Journal of the European Communities

EN

8.4.1999

(1999/C 96/059)

WRITTEN QUESTION E-2129/98

by Felipe Camis(cid:243)n Asensio (PPE) to the Commission

Subject: Taxation of electronic commerce

(10 July 1998)

Has the Commission decided to act to ensure that no new tax not affecting other forms of trade is imposed on
electronic commerce once it has become subject to indirect taxation, by seeking to take the necessary steps to
establish absolute tax neutrality?

What strategy will it pursue to that end?

Answer given by Mr Monti on behalf of the Commission

(22 September 1998)

The Commission has been working with Member States for over a year to establish principles for applying the
Community common value added tax (VAT) system to electronic commerce. This work progressed on the
common understanding between the Commission and Member States that VAT is the best and most appropriate
way to apply indirect taxation to electronic commerce. The Commission is continuing to work in consultation
with Member States tax authorities and the business world, to ensure that the Community VAT system is adapted
as necessary to meet developments in this new environment.

It is not sufficient, however, to work only at the European level. Electronic commerce represents a global market
and co-ordination is needed to find an internationally acceptable tax framework for such transactions. To this end
the Commission has forwarded a communication to the Council (1) proposing guidelines for the taxation of
electronic commerce stressing, amongst other things, the need for neutrality. The Council has taken note of the
Commission(cid:146)s work in this field and confirmed that VAT, rather than other forms of taxation, should apply to
transactions in this field. The Commission is to contribute to the debate in the appropriate fora to seek agreement
to an international tax framework based on the indirect tax principles approved by the Council.

(1) COM(98) 374 final.

(1999/C 96/060)

WRITTEN QUESTION E-2132/98

by Alfonso Novo Belenguer (ARE) to the Commission

Subject: The euro and pharmaceutical packaging

(10 July 1998)

Spain(cid:146)s Law 25/1990 of 20 December 1990 on medicines stipulates that, inter alia, the price and expiry date
should feature on the packaging of pharmaceutical products.

At present, the prices on the packaging of all pharmaceutical products in Spain are quoted in pesetas.

The entry into force of the provisions on the single currency in the European Union envisages an initial transition
period in which prices are to be given in euros and pesetas alike, before the obligation to quote prices in euros
alone takes effect at a later stage.

This is a complex and problematic situation, insofar as some pharmaceutical products already on the market have
packaging with prices in pesetas and are not due to expire until 2003.

Given this situation, does the Commission intend to take measures or action to alleviate the high costs involved in
taking these products off the market and re-labelling them with prices quoted in euros?