Amended 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: 1999-04-15
Institutions: European Commission
Subjects: motor vehicle, residence, tax harmonisation, tax system, vehicle registration

C 145/6

EN

Official Journal of the European Communities

26.5.1999

II

(Preparatory Acts)

COMMISSION

Amended 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 (1)

(1999/C 145/06)

(Text with EEA relevance)

COM(1999) 165 final (cid:151) 98/0025(CNS)

(Submitted by the Commission pursuant to Article 189a(2) of the EC Treaty on 16 April 1999)

(1) OJ C 108, 7.4.1998, p. 75.

ORIGINAL TEXT

AMENDED TEXT

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission,

Unchanged

Having regard to the opinion of the European Parliament,

Having regard to the opinion of
Committee,

the Economic and Social

Recital 1

in the single market,

Whereas,
to the free
movement of persons and their personal property, including
motor vehicles, should be removed;

tax obstacles

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 trans-
ferring 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;

26.5.1999

EN

Official Journal of the European Communities

C 145/7

ORIGINAL TEXT

Recital 4

AMENDED TEXT

Whereas, accordingly, the terms of the exemptions provided by
Council Directive 83/182/EEC on tax exemptions within the
temporarily
Community for
certain means of
and
imported into one Member State
Council Directive 83/183/EEC on tax exemptions applicable
to permanent imports from a Member State of the personal
the present needs
property of
concerning free circulation of persons and of goods;

transport
from another (1)

individuals (2) do not reflect

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 77/388/EEC with a
view to the abolition of fiscal frontiers (3); whereas, in practice,
problems concerning taxation of property following a transfer
of residence are confined to motor vehicles and it is thus no
longer necessary to lay down rules for other goods, whereas
permanent exemptions other than in connection with transfer
of residence need no longer be provided for;

Recital 6

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;

___________
(1) OJ L 105, 23.4.1983, p. 59.
(2) OJ L 105, 23.4.1983, p. 64.
(3) OJ L 376, 31.12.1991, p. 1.

C 145/8

EN

Official Journal of the European Communities

26.5.1999

ORIGINAL TEXT

Recital 9

AMENDED TEXT

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
taxes should be permitted for a period of six
payment of
months in any 12; whereas,
in the case of a person whose
professional ties are in another Member State, this should be
increased to nine months;

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
is
necessary to expressly provide for use of vehicles by certain
persons other than the owner, and whereas it is necessary, in
certain circumstances, to allow use by a resident of a Member
State a vehicle registered in another Member State;

to certain conditions; whereas,

furthermore,

it

Recital 14

it

Whereas
is necessary to provide rules governing the
temporary use of a private vehicle in another Member State
for business purposes;

Recital 15

Recital 15

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

Whereas,
in cases where vehicles, during temporary use in
another Member State, are irretrievably damaged and are
disposed of with a view to being scrapped or destroyed, their
owners should not incur liability to taxation as a result;

26.5.1999

EN

Official Journal of the European Communities

C 145/9

ORIGINAL TEXT

Recital 16

AMENDED TEXT

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;

Unchanged

Recital 17

Recital 17

in cases where infringements of

the rules are
Whereas,
encountered, any sanctions imposed shall be proportionate to
the offence;

in cases where infringements of

the rules are
Whereas,
encountered, any sanctions imposed shall be proportionate to
the offence; whereas the person shall have the choice of either
paying the tax of the Member State or removing the vehicle
from the Member State without payment of tax;

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;

Unchanged

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

HAS ADOPTED THIS DIRECTIVE

TITLE I

General provisions

Article 1 to Article 15

TITLE I

General provisions

Unchanged