WRITTEN QUESTION E-0202/01 by Charles Tannock (PPE-DE) and Theresa Villiers (PPE-DE) to the Commission. VAT rates on the repair of churches.
Date: 2001-02-02
Institutions: European Parliament, Provisional data
Subjects: Ireland, church, tax harmonisation, tax relief, urban renewal

18.9.2001

EN

Official Journal of the European Communities

C 261 E/63

Article 25). However, the Directive specifies, also in recital 30, that any take-or-pay contracts entered into
or renewed after its entry into force should be concluded prudently (cid:145)in order not to hamper a significant
opening of the market(cid:146). Moreover, Article 25(3) sets very strict criteria that are to be taken into account
when granting temporary derogations, the first of which is (cid:145)the objective to achieve a competitive gas
market(cid:146).

As for the risk, highlighted by the Honourable Member, that the existence of take-or-pay clauses may
prevent new suppliers from entering the European energy market, an exclusion effect would be likely to
arise, rather than from take-or-pay clauses, from other clauses such as non-competition obligations, the
duration of the supply contracts, or contracts reserving transportation capacity. However, such clauses
cannot be considered to be intrinsically anti-competitive. Their potential anti-competitive effects must be
assessed on a case-by-case basis, taking account in particular of the market power of the companies
concerned and thus the degree of competition present on the relevant product market. If such clauses
served to ensure that the supplier covered any new investments made in order to ensure supply, they
could qualify for an exemption under Article 81(3) (formerly Article 85) of the EC Treaty.

In any event, the Commission is monitoring very closely the European gas sector as it moves towards an
integrated and competitive market. In particular, the Directorate-General for Competition has instituted
own-initiative proceedings in respect of clauses likely to restrict competition contained in certain contracts
for the importation of natural gas. Since the investigation has not yet been completed,
it would be
inappropriate to provide further details at this stage.

(1) OJ L 204, 21.7.1998.

(2001/C 261 E/065)

WRITTEN QUESTION E-0202/01

by Charles Tannock (PPE-DE) and Theresa Villiers (PPE-DE) to the Commission

(2 February 2001)

Subject: VAT rates on the repair of churches

Are any Member States currently applying a reduced rate of VAT on repairs/maintenance to buildings used
as places of worship? If so, under what provisions is this taking place?

Answer given by Mr Bolkestein on behalf of the Commission

(19 March 2001)

According to the information available to the Commission, the only Member State currently applying a
reduced rate of VAT on repairs/maintenance to buildings used as places of worship is Ireland.

Ireland applies a rate of 12,5 % to these services in accordance with Article 28(2)(e) of the sixth VAT
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). This
Article permits Member States that on 1 January 1991 applied a reduced rate to goods and services not
listed in Annex H of the sixthVAT Directive, to continue to apply a reduced rate of not less than 12 %
during the transitional period.

(1) OJ L 145, 13.6.1977, Directive as last amended by Council Directive 2001/41/EC of 19 January 2001 (OJ L 22,

24.1.2001).