WRITTEN QUESTION E-1703/01 by Glyn Ford (PSE) to the Commission. Taxation on cars.
Date: 2001-06-14
Institutions: European Parliament, Provisional data
Subjects: VAT, derogation from EU law, motor car, single market, tax harmonisation, tax system

C 364 E/182

Official Journal of the European Communities

EN

20.12.2001

up to date measurement of the performance obtained in relation to the indicators listed in the Annex III to
Directive 98/10/EC of the Parliament and of the Council of 26 February 1998 on the application of open
network provision (ONP)
to voice telephony and on universal service for telecommunications in
a competitive environment (2).

(1) COM(1999) 537 final and COM(2000) 814 final.
(2) OJ L 101, 1.4.1998.

(2001/C 364 E/201)

WRITTEN QUESTION E-1703/01

by Glyn Ford (PSE) to the Commission

(14 June 2001)

Subject: Taxation on cars

When you buy a bottle of wine in an EU Member State you pay the tax in the country from which it is
purchased. When you buy a car in an EU Member State you pay the tax in the country in which the car is
to be registered and not in the country in which it was originally purchased. Does the Commission not feel
that the purchasing of goods should be treated in the same way?

Answer given by Mr Bolkestein on behalf of the Commission

(30 July 2001)

When a non-taxable person purchases goods, other than those subject to excise duty, in a Member State
and he transports the goods himself to another Member State, for example where he has his permanent
address or usually resides, he pays the VAT of the Member State where he purchases the goods. However,
when the goods concerned are new means of transport, the Council decided in 1992 to adopt a special
scheme whereby a new taxable event was created. This new taxable event, mentioned under
Article 28a(1)(b) of the Sixth VAT Directive, Council Directive 77/388/EEC of 17 May 1977 on the
harmonization of the laws of the Member States relating to turnover taxes (cid:129) Common system of value
added tax: uniform basis of assessment (1) is the intracommunity acquisition of new means of transport
affected for consideration within the Member State by taxable persons, non-taxable legal persons or by any
other non-taxable person. This implies that for new means of transport, purchased by a non-taxable
person, the VAT becomes due in the Member State of arrival, which is normally where the new means of
transport is to be registered.

New means of transport are defined under Article 28a(2) of the Sixth VAT Directive.

A car will be considered a new means of transport when:

(cid:129) its capacity exceeds 48 cc or 7,2 kilowatts and it is intended for the transport of persons or goods

and;

(cid:129) it is supplied not more than 6 months after the date of first entry into service or;

(cid:129) it has traveled less than 6 000 kilometers.

When introducing the current VAT arrangements, the Council decided to adopt a specific scheme for the
supplies of new means of transport because the existing divergences in rates applicable in the different
Member States were likely to create severe distortions of competition for the goods concerned. The risk of
a change in commercial flows was estimated to be too important to allow non-taxable persons to purchase
these goods at the VAT rate of the Member State of origin and therefore these derogatory provisions were
inserted for the supplies of new cars.

20.12.2001

EN

Official Journal of the European Communities

C 364 E/183

Similar budgetary considerations apply with respect to other taxes related to passenger cars, and in
particular registration and annual circulation taxes, concerning which so far there is little Community
legislation. Therefore, each Member State is allowed to apply its national fiscal provisions providing that it
respects the general provisions of the EC Treaty and in particular the non-discrimination clause. Existing
harmonisation only concerns two Council Directives, adopted in 1983 (2).

The Commission presented a Proposal for a Council Directive (3) in 1998, with the overall objective of
bringing the tax treatment of vehicles, which accompany private individuals moving from one Member
State to another, more in line with the concept and principles of the Single Market and updating the
provisions of the two Council Directives mentioned above. This proposal remains on the Council(cid:146)s table as
any decision on fiscal matters needs to be taken by unanimity at the Council.

(1) OJ L 145, 13.6.1977.
(2) Council Directives 83/182/EEC and 83/183/EEC of 28 March 1983, concerning respectivelly tax exemptions for
certain means of transport temporarily imported into one Member State from another, and exemptions applicable
to permanent imports from one Member State to another of the personal property of individuals,
including
passenger cars (OJ L 105, 23.4.1983).

(3) OJ C 108, 7.4.1998.

(2001/C 364 E/202)

WRITTEN QUESTION E-1704/01

by Daniel Varela Suanzes-Carpegna (PPE-DE) to the Commission

Subject: Selection procedures for R & D projects for 2002-2006

(14 June 2001)

In his answer to Question E-0716/01 (1), Commissioner Busquin stressed that R & D actions will be applied
on the basis of annual decisions as regards both the special subjects chosen and the financial resources
allocated, while, however, choices will be made on the basis of need, in line with the assessment made by
an internal user group, supported by the opinion of an independent consultative group of high-level
scientific and industrial experts, adding that the financial allocation to R & D projects on fisheries and
marine sciences will depend on the quality of the proposals received.

Can the Commission provide more details on the form and content of the calls for R & D projects for

1.
2002-2006 in the area of fisheries and marine sciences?

2.
Can the Commission provide information on the criteria which it used for the selection of R & D
projects in the area of fisheries and marine sciences for 1998-2002 and those which it intends to use for
2002-2006?

Can the Commission provide more details on its criteria for distribution of the available Community

3.
resources among the projects selected? Will this distribution depend exclusively on project quality?

Can the Commission provide detailed information on the membership and working methods of both
4.
the internal user group and the independent consultative group of high-level scientific and industrial
experts?

(1) OJ C 318 E, 13.11.2001, p. 107.

Answer given by Mr Busquin on behalf of the Commission

(2 August 2001)

The form and content of the calls for Research and Technological Development (RTD) projects for 2002-
2006 relating to fisheries and marine science cannot be specified at the present time. As indicated in the