WRITTEN QUESTION E-0794/00 by Mary Banotti (PPE-DE) to the Commission. Vehicle registration tax.
Date: 2000-03-16
Institutions: European Parliament, Provisional data
Subjects: EU policy, Ireland, motor car, tax harmonisation, vehicle registration, vehicle tax

28.12.2000

EN

Official Journal of the European Communities

C 374 E/157

Answer given by Mrs de Palacio on behalf of the Commission

(11 April 2000)

The Irish authorities have recently confirmed that they intend to notify to the Commission the setting up
of a new support mechanism for peat in Ireland. Upon receipt of this notification, the Commission will
examine the compatibility of the proposed support mechanism with Community rules on state aids.

In the framework of such examination, the Commission will study the Irish arrangements for public
service obligations and security of supply in relation to future electricity generation by peat. This analysis
will take into account the recent legal developments for the liberalisation of the European electricity
market.

(2000/C 374 E/186)

WRITTEN QUESTION E-0794/00

by Mary Banotti (PPE-DE) to the Commission

(16 March 2000)

Subject: Vehicle registration tax

Given the current anomaly in Ireland where VRT can amount to 25 % of the Open Market Selling Price
(OMSP) of a new car, and given that consumers throughout Europe pay VAT on the purchase of a new
Ireland for what appears to be the
car, will
imposition of double taxation on Irish car buyers?

the Commission consider taking some action against

Answer given by Mr Bolkestein on behalf of the Commission

(27 April 2000)

The Commission would inform the Honourable Member that under Community law as it stands the
Member States may impose taxes other than VAT on vehicles. Article 33 of the Sixth VAT Directive itself
(77/388/EEC) (1) expressly provides for this possibility:

Without prejudice to other Community provisions, ((cid:133)) the provisions of this Directive shall not
prevent a Member State from maintaining or introducing ((cid:133)) any taxes, duties or charges which
cannot be characterised as turnover taxes, provided however that those taxes, duties or charges do not,
in trade between Member States, give rise to formalities connected with the crossing of frontiers.

The tax to which the Honourable Member refers is not similar to VAT and does not give rise to formalities
connected with the crossing of frontiers.

It should, however, be pointed out that while the Member States are free to impose taxes on cars, they
should nonetheless obey the established legal principle requiring them to take into account the deprecia-
tion of second-hand vehicles originating in other Member States when applying the tax. Moreover, under
Directive 83/183/CEE on tax exemptions applicable to permanent imports from a Member State of the
personal property of individuals (2), cars registered in a Member State following a move from another
Member State must be exempted from all consumption taxes.

The Commission is currently preparing a study assessing the scale of distortion of the internal market
caused by the lack of harmonisation of taxes on vehicles across the Community. The Commission also
intends to launch a discussion with the administrations of the Member States and other Community
institutions this year on future options for Community action on vehicle taxation.

(1) OJ L 145, 13.6.1977.
(2) OJ L 105, 23.4.1983.