WRITTEN QUESTION P-2377/01 by Hugues Martin (PPE-DE) to the Commission. Delays in VAT refunds in Member States.
Date: 2001-08-02
Institutions: European Parliament, Provisional data
Subjects: VAT, approximation of laws, tax rebate, tourist profession

C 93 E/124

Official Journal of the European Communities

EN

18.4.2002

The case of Mr Huang Qi has been the subject of considerable international concern. His trial appears to
have been held mid-August 2001 in secret. No verdict has been announced. The Union has raised the case
with Chinese authorities in the last Union/China Human Rights dialogue on 22-23 February 2001. The
Commission does not have information about his current state of health or confirmation of dates for his
trial. The Commission has so far not been in a position to send representatives from the Commission
Delegation in Beijing to attend trials of individuals.

The Honourable Member can be assured that the Commission will follow developments concerning the
situation of Mr Huang Qi and that it will continue to raise the issue of freedom of expression in its
dealings with China.

(2002/C 93 E/146)

WRITTEN QUESTION P-2377/01

by Hugues Martin (PPE-DE) to the Commission

(2 August 2001)

Subject: Delays in VAT refunds in Member States

Professionals from the business tourism sector recently approached me about the recovery of VAT in the
Member States.

In addition to the problems arising from the disparities between VAT rates for the same service in the
different Member States, which still apply under the present transitional arrangements for the common
VAT system, this sector is particularly affected by the sometimes excessively long delays in carrying out
reimbursements.

Will the Commission clarify its position on this matter? Does it intend to put forward an amendment to
the existing legislation specifically with regard to harmonising time limits for reimbursements in the
Member States and reducing the maximum time, e.g. to three months?

Answer given by Mr Bolkestein on behalf of the Commission

(19 September 2001)

At present traders wishing to recover the VAT on expenditure incurred in a Member State where they are
not established must lodge an application for reimbursement in that Member State, in accordance with the
procedure laid down by the eighth Council Directive 79/1072/EEC of 6 December 1979 on the
harmonisation of the laws of the Member States relating to turnover taxes 9 Arrangements for the refund
of value added tax to taxable persons not established in the territory of the country (1).

Traders have been complaining for a number of years about this procedure, and in particular the
cumbersome nature of the administrative formalities and the time taken for payment.

In June 1998 the Commission presented a proposal for a directive (2) to replace this procedure by the right
for taxable persons to recover the VAT direct in the periodic return which they make to their Member
State of establishment. That Member State would then recover the sums from the Member States where the
tax was due by a system for offsetting debts among Member States.

It is obvious that this proposal represents a substantial simplification for traders, who could recover the
VAT paid in another Member State in the same way as national VAT.

Despite the total support from traders, and the favourable opinion of Parliament and the Economic and
Social Committee, it has not yet proved possible to reach unanimous agreement within the Council on this
proposal.

(1) OJ L 331, 27.12.1979.
(2) OJ C 219, 15.7.1998.