WRITTEN QUESTION P-2039/00 by Christa Randzio-Plath (PSE) to the Commission. Amendment of Directive 77/388/EEC in respect of VAT on certain electronically delivered services.
Date: 2000-06-16
Institutions: European Parliament, Provisional data
Subjects: European tax cooperation, VAT, electronic commerce

20.3.2001

EN

Official Journal of the European Communities

C 89 E/137

(2001/C 89 E/150)

WRITTEN QUESTION P-2039/00

by Christa Randzio-Plath (PSE) to the Commission

(16 June 2000)

Subject: Amendment of Directive 77/388/EEC in respect of VAT on certain electronically delivered services

In the Commission(cid:146)s estimation, how high is the turnover on paid services delivered by an entrepreneur
located in a third country to a commercial customer in the EU? How high is the turnover on paid services
delivered by an entrepreneur located in a third country to a private individual in the EU?

Is it likely that the decision that business players from non-EU countries engaged in e-commerce must
register in only one Member State, will
lead to an inflow of tax revenue in the EU Member States
concerned that it is incommensurate with their economic activity?

Can it be ruled out that
discrimination against businesses with fiscal residence?

through the above arrangements,

the intended Directive will

lead to tax

Answer given by Mr Bolkestein on behalf of the Commission

(17 July 2000)

With respect to its impact on VAT revenues, it is necessary to stress that electronic commerce is still at a
very early stage and the tax revenues involved are not really significant today, although this is likely to
change in the near future. Business to business transactions, which represent by far the greatest portion of
electronic commerce, will be accounted for under the reverse charge mechanism. Business to consumer
transactions, where the level of activity is as yet low, will be dealt with by a system of vendor registration.

Accordingly, the Commission(cid:146)s proposal (1) in respect of VAT on electronic commerce is not driven by
revenue considerations. The primary focus of the proposal is to remove the existing inequality in tax
treatment which works to the disadvantage of Community business. The aim is to ensure that competition
between Community operators and third country operators is fair and equitable, and that a clear and
certain taxation framework is in place to accommodate future growth.

The Commission has not therefore sought to quantify the historical level of taxable activity. All of the data
from reliable external sources, notably the Organisation for economic cooperation and development
(OECD), confirms that the categories of on-line electronically delivered services which the Commission(cid:146)s
proposal covers are only now beginning to take off to any significant degree.

The Commission believes that a single place of registration for third country operators is the only
sustainable option, particularly in the context of World Trade Organisation (WTO) obligations. This will
of course highlight the disparity in existing VAT rates across the Community and in the Commission(cid:146)s
view only serves to highlight the need for greater alignment of rates.

(1) OJ C 30, 5.2.1999.

(2001/C 89 E/151)

WRITTEN QUESTION P-2041/00

by Carlos Bautista Ojeda (Verts/ALE) to the Commission

(16 June 2000)

Subject: High-speed rail link to MÆlaga

Is the Commission aware of the project for the construction of a high-speed rail link between C(cid:243)rdoba and
MÆlaga?

Will the EU finance this project in whole or in part?

If EU financing is forthcoming, to which of the Community funds will it be charged and what will be the
sums involved?