WRITTEN QUESTION No. 506/99 by Klaus LUKAS Sixth value added tax directive/Austria
Date: 1999-03-08
Institutions: European Parliament, LUKAS
Subjects: Austria, VAT rate, building plot, derogation from EU law, property leasing

C 27 E/18

Official Journal of the European Communities

EN

29.1.2000

As far as the European Economic Area is concerned, the French Government, by way of a declaration
annexed to the Final Act of the protocol, noted that the Agreement on the European Economic Area does
not apply to overseas countries and territories associated to the European Economic Community pursuant
to the provisions of the Treaty establishing the European Economic Community (5).

(1) OJ C 325, 12.11.1999, p. 114.
(2) OJ L 329, 29.11.1997.
(3) Although Article 183(5) of the EC Treaty mentions only the right of establishment, Article 232 of the aforesaid
Council Decision refers to the arrangements applicable to establishment and provision of services. See also Article
233b of the same Council Decision concerning the recognition of professional qualifications.

(4) According to Article 5(1) of the Act of Accession of Danemark to the Schengen Convention, this Convention does
not apply to Greenland. However, according to Article 5(2) of the same Act, people travelling between Greenland
and Schengen countries (or Iceland and Norway) are not controlled at the frontiers.
See Protocol adjusting the Agreement on the European Economic Area (cid:129) Final Act (cid:129) Joint Declaration (cid:129) Agreed
Minutes (cid:129) Declaration by the Governement of France, OJ L 1, 3.1.1994.

(5)

(2000/C 27 E/019)

WRITTEN QUESTION E-0506/99

by Klaus Lukas (NI) to the Commission

(8 March 1999)

Subject: Sixth value added tax directive/Austria

During the accession negotiations Austria was granted a derogation with respect to the application of the
sixth value added tax directive. This enabled it to charge tax on the renting of land for residential purposes
at a reduced rate until 31 December 1998.

The Commission is asked in this context:

1. Did the Federal Austrian Government apply for an extension of the derogation referred to above?

2.

If so, when was the application made, and what action was taken by the Commission?

3.

If not, what implications does the passing of this deadline have for the applicable tax rate?

4. Can it give any accurate information on the rate of tax on the renting of land for residential purposes

that has applied since 1 January 1999?

Answer given by Mr Monti on behalf of the Commission

(26 April 1999)

The Austrian government did not apply for an extension of the derogation allowing it to
1. and 2.
apply a reduced rate of tax on the letting or leasing of property for residential use until 31 December
1998.

Since 1 January Austria has been obliged to apply the common VAT system to the letting or
3. and 4.
leasing of property for residential use. In principle, this means that it has to exempt the letting or leasing
of such property from VAT under Article 13B(b) of the Sixth Council Directive 77/388/EEC of 17 May
1977 on the harmonisation of the laws of the Member States relating to turnover taxes (cid:129) Common
system of value added tax: uniform basis of assessment (1). It may, however, allow taxpayers to opt for
taxation of such transactions (Article 13C(a) of the Directive). Should they do so, they must apply the
normal rate of VAT.

(1) OJ L 145, 13.6.1977.