WRITTEN QUESTION E-0868/00 by Michl Ebner (PPE-DE) to the Commission. Boycott of Austrian travellers by taxi drivers in Brussels.
Date: 2000-03-22
Institutions: European Parliament, Provisional data
Subjects: Austria, Belgium, Brussels region, competence of the Member States, discrimination on the basis of nationality, infringement of EU law, taxi

C 374 E/174

Official Journal of the European Communities

EN

28.12.2000

(2000/C 374 E/204)

WRITTEN QUESTION E-0864/00

by Marianne Thyssen (PPE-DE) to the Commission

(22 March 2000)

Subject: VAT on mandates

Article 18(1), second subparagraph, point 3, of the Belgian value added tax (VAT) code stipulates that the
execution of contracts concerning (cid:145)mandates(cid:146) is regarded as a service.

The Belgian VAT authority infers from this that the activities of a person who has been given a mandate
are always liable to VAT, even when that person intervenes in the context of an activity which is exempted
by Article 13 of the Sixth Directive, Council Directive 77/388/EEC (1) of 17 May 1977.

Article 6 of the Sixth Directive, however, does not define (cid:145)mandate(cid:146) as a taxable service. On the contrary, it
is clear from the case law of the Court of Justice of the European Communities and, more specifically,
from the judgment of 7 June 1977 in Case C 2/95, Sparekassernes Datacenter (SDC) v. Skatteministeriet
that the activity of a person who has received a mandate must be exempted if that person himself carries
out the activity exempted by Article 13 of the Sixth Directive. On the other hand, it follows from the
judgement of the Court of Justice of 25 February 1999 in the case concerning Card Protection (Case
C 349/96) that an exemption depends not on the capacity of service supplier but solely on the nature of
the service supplied.

What is the Commission(cid:146)s interpretation in this matter? Does it believe that the activities of a person given
a mandate are in principle always liable to VAT and thus even when his intervention occurs in the context
of an activity which is exempted by Article 13 of the Sixth VAT Directive?

(1) OJ L 145, 13.6.1977, p. 1.

Answer given by Mr Bolkestein on behalf of the Commission

(26 April 2000)

The carrying out of a mandate for a consideration by a taxable person is incontestably a taxable operation
within the meaning of Article 2 of the Sixth VAT Directive 77/388/EEC. Although this activity is not
explicitly named in Article 6 of the Sixth Directive, the supply of services is defined there by default: (cid:145)shall
mean any transaction which does not constitute a supply of goods(cid:146).

Furthermore, as a general rule, operations upstream of the operations exempted do not benefit from this
exemption and must therefore be taxed (judgment of 12 July 1985, case 107/84 Commission v. Germany).

On the other hand, it may also happen that the provider of the services under the mandate also carries out
operations which are exempt if the beneficiary of the services is not the exempted customer but the party
for whose benefit the exemption is intended.

However, the Commission considers that these issues must be analysed on a case-by-case basis, taking
account of the fact that, since the exemptions are derogations from the general taxation rule, they must be
interpreted in a restrictive manner, and therefore a general principle whereby all agents acting on mandates
in exempt operations benefit from the exemption can not be drawn from the judgment of 7 June 1997
(case C-2/95 SDC).

(2000/C 374 E/205)

WRITTEN QUESTION E-0868/00

by Michl Ebner (PPE-DE) to the Commission

(22 March 2000)

Subject: Boycott of Austrian travellers by taxi drivers in Brussels

The (cid:145)Union des Taxis de Bruxelles(cid:146) has stated that as from today, Wednesday, 8 March 2000, Austrian
nationals will no longer be transported. This boycott affects mainly staff and customers of the Austrian
embassy, the EU representation and the offices of the federal regions. The reason given is that the majority
of taxi drivers are immigrants.

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Official Journal of the European Communities

C 374 E/175

This attitude is contrary to every principle of tolerance and equality between all human beings irrespective
of their race, nationality, sex and religious principles. Clearly, Austria(cid:146)s rights are being infringed here
when citizens are denied access to goods and services.

In view of the urgency of the matter, will the Commission state what measures it intends to take to
counteract this anti-EU discrimination against Austrian nationals and hence citizens of the Union?

Answer by Mr Bolkestein on behalf of the Commission

(15 May 2000)

The freedom to provide services, a fundamental principle based on non-discrimination with regard to
nationality, is required of the national authorities of the Member States and of organisations responsible
for governing occupational sectors.

According to the information available to the Commission, the situation described by the honourable
Member stems from an initiative of an economic operator and not from an order issued in respect of taxi
drivers by the Belgian authorities.

In this context, the Commission has no legal means allowing it to take action to put an end to the
discriminatory measures referred to.

Private behaviour which discriminates against customers on the basis of nationality is, however, a matter
for national jurisdiction. Victims could respond to such behaviour either by initiating criminal proceedings
(with a claim for damages at the court in Brussels) or civil proceedings for exemplary damages.

(2000/C 374 E/206)

WRITTEN QUESTION E-0870/00

by Alejandro Agag Longo (PPE-DE) to the Commission

(22 March 2000)

Subject: Austria(cid:146)s Stability Programme

1 March was the deadline for submission of the Member States(cid:146) Stability Programmes. The Austrian
government had not yet submitted its programme by that date. Does the Commission know the reason for
the delay and when the Austrian Government intends to submit its programme?

Answer given by Mr Solbes Mira on behalf of the Commission

(18 April 2000)

The new federal government of the Austrian Republic was sworn in on 4 February 2000. Both the budget
for the year 2000 and the stability programme are treated as high priority issues.

The Minister of Finance presented the draft budget to the Austrian Parliament on 21 March 2000. The
Minister of finance, immediately after having taken office, informed the Commission by letter that the
federal government will update the stability programme, which already has been discussed with the
Laender and communities, by the end of March 2000, after the presentation of the budget.