WRITTEN QUESTION E-2588/02 by Glyn Ford (PSE) to the Commission. VAT harmonisation.
Date: 2002-09-16
Institutions: European Parliament, Provisional data
Subjects: France, Ireland, United Kingdom, VAT, provision of services, registration of a company, tax harmonisation

C 137 E/94

Official Journal of the European Union

EN

12.6.2003

However, the positive aspect of this entire affair is that (cid:1) for the first time (cid:1) Turkey recognises that it
has pursued a discriminatory policy for decades against minorities living on its territory and is now
trying, under pressure from the EU, to allow the acquisition of property by minority institutions and
communities.

When exactly will these (albeit limited) provisions enter into force? How will the Council ensure that these
provisions take effect retroactively to make amends, even in part, for the unprecedented injustices suffered
by Christians of all denominations and Jews who lived in Turkey who were deprived of their property en
masse and forced to leave the country?

Reply

(18 February 2003)

The provisions referred to by the Honourable Member are part of a reform package adopted by the
Turkish Parliament on 3 August which the EU had welcomed in a declaration on 6 August as an
important step forward. They have been examined in detail, in particular in the context of preparation of
the Commission Regular Report on Turkey held on 9 October. The Regular Report provides a full and
thorough assessment of the new provisions on religious Foundations and identify possible shortcomings.

As also underlined in the declaration of 6 August,
swift and comprehensive
implementation of those reforms. In that respect, the Turkish government has given instructions for the
necessary measures to be taken rapidly. In this respect, however, the by-law on religious foundations
issued in the meantime appears to be highly restrictive. This point was made to Turkey on the occasion of
the Political Directors troika in Ankara on 31 October, when Turkey gave assurances that possible
difficulty in implementation would be adequately addressed with the necessary flexibility. A specific date
for entry into force can not, however, be indicated yet.

the EU expects

The Council would invite the Honourable Member
implementation of the Accession Partnership.

to approach the Commission regarding the

(2003/C 137 E/107)

WRITTEN QUESTION E-2588/02

by Glyn Ford (PSE) to the Commission

(16 September 2002)

Subject: VAT harmonisation

A UK company wishing to provide a service in France or Ireland is required to register for domestic VAT
in that country, charge it to the customer and remit the proceeds to the authorities. This is before the
company is even paid by its customer. This is a direct result of lack of VAT harmonisation.

However, Ireland and France benefit from UK harmonisation and therefore can trade into the UK for
services and product/services without the need to hold a UK VAT registration.

One local firm in my South West constituency has estimated that adding up the costs incurred for
professional advisers to research legislation and deal with their corresponding partners in those countries
to effect the application and give advice amounts to start-up costs of approximately GBP 2 500 in Ireland,
GBP 5 000 in France. Added to this are translation costs for the translation of forms and correspondence.

Can the Commission indicate what plans it has to bring about greater VAT harmonisation?

12.6.2003

EN

Official Journal of the European Union

C 137 E/95

Answer given by Mr Bolkestein on behalf of the Commission

(4 October 2002)

Pursuant to the rules laid down in the Sixth VAT Directive (Council Directive 77/388/EEC of 17 May 1977
on the harmonisation of the laws of the Member States relating to turnover taxes (cid:1) Common system of
value added tax: uniform basis of assessment (1)), companies have to charge and pay VAT in each Member
State where they supply goods or services. This means that they may have to register for VAT as well as to
invoice and declare this tax in Member States where they are not established, as soon as they have a cross-
border activity.

In order to make it easier, this Directive lays down a series of cases where VAT has to be paid by the client
when the supplier is not established in the Member State: this is a general rule for all intracommunity
supplies of goods and also for the supplies of certain types of services.

In addition to this, article 21 of the Sixth VAT Directive allows Member States to extend this simplification
to all cases where the client is not established within the Member State.

The Commission is well aware that such a simplification is not applied in all Member States but this
option is the result of a difficult compromise in the Council in the framework of the discussions on
suppressing the obligation to appoint a tax representative.

A European study is currently being carried out on the simplification and modernisation of VAT
obligations in the Community. The specific problem of the need to register for VAT in Member States
where companies are not established will be dealt with in that framework.

(1) OJ L 145, 13.6.1977.

(2003/C 137 E/108)

WRITTEN QUESTION E-2589/02

by Pere Esteve (ELDR) to the Council

(16 September 2002)

Subject: Single European Sky

The European Parliament has just adopted the report by Marieke Sanders-ten Holte on the Single European
Sky: Air Navigation Services / Airspace / Interoperability of the European network (A5-0266/2002).

There are significant political aspects to this resolution, and political problems relating to national interests
have always arisen in the Council whenever this matter has been addressed. I would therefore like to know
whether all these problems have now been resolved, or whether these differences still exist and are still an
obstacle to agreement.

Given that this is an urgent matter, public opinion is very sensitive to it and the public expects a swift and
definitive solution. I myself have been keeping abreast of the work done by the European Commission in
this area, but what stage have negotiations reached in the Council?

Reply

(18 February 2003)

The package of four legislative proposals aimed at creating a ‘Single European Sky’ basically envisages the
application of common principles and rules in airspace in order to tackle problems of air-traffic congestion
and aircraft delays.

Almost immediately after its presentation by the Commission, the Council started its work on the Single
European Sky package. The European Council of Barcelona pledged its support for this work. At its
meeting in March 2002, the Council discussed certain specific issues of the package, giving valuable input
to the ongoing work, and at its meeting in June 2002, it took note of the work carried out under the
Spanish Presidency on the development of this dossier.