WRITTEN QUESTION P-3773/02 by Maurizio Turco (NI) to the Commission. Spain's infringement of Directive 91/680/EEC on fiscal harmonisation with reference to VAT.
Date: 2002-12-16
Institutions: European Parliament, Provisional data
Subjects: Catholicism, Spain, VAT, financing, infringement of EU law, national implementing measure, tax harmonisation

C 161 E/142

Official Journal of the European Union

EN

10.7.2003

(2003/C 161 E/145)

WRITTEN QUESTION P-3773/02

by Maurizio Turco (NI) to the Commission

(16 December 2002)

Subject: Spain’s infringement of Directive 91/680/EEC on fiscal harmonisation with reference to VAT

The questioner would like to refer to Articles 6 and 7 of the TEU, Article 13 of the TEC and Directive 91/
680/EEC (1) on fiscal harmonisation with reference to VAT.

More than ten years have passed since Spain’s accession to the European Union and the Directive should
therefore have been fully transposed into national law.

On 23 November 1989 the Commission wrote to the Spanish Permanent Representation to the EU to
point out that the tax benefits resulting from the VAT exemption which the Catholic Church is the only
religious faith in Spain to enjoy by virtue of the 1979 Agreement concerning Economic Affairs concluded
between the Kingdom of Spain and the Holy See, are not mentioned in the above-mentioned Directive. In
its reply the Spanish Government confined itself to saying that the Agreement was concluded before
Spain’s entry into the Community in 1986.

Article 5 of the Act concerning the Conditions of Accession to the European Communities of the Kingdom
of Spain establishes that Article 307 of the TEC applies to Spain. The second paragraph of that article
obliges the Member States to take all appropriate steps to eliminate the incompatibilities ascertained
between Community law and the obligations arising from treaties signed prior to accession, as in the
above-mentioned case.

Furthermore, by virtue of the Agreement concerning Economic Affairs the Catholic Church is the only
religious faith funded by the Kingdom of Spain (cid:1) the Spanish general budget for 2001 sets a minimum
monthly amount of EUR 11 109 169,68, equivalent to an annual sum of EUR 133 310 036,16, for the
benefit of the Catholic Church, thereby discriminating against other religious faiths.

Can the Commission say:

(cid:1) what it intends to do to put an end to this infringement on the part of the Kingdom of Spain;

(cid:1) whether there are other Member States in the same situation,

(cid:1) whether it does not consider that this infringement constitutes discrimination against other religious

faiths?

(1) OJ L 376, 31.12.1991, p. 1.

Answer given by Mr Bolkestein on behalf of the Commission

(24 January 2003)

The Commission has examined the measure under the procedure provided for in Article 226 of the EC
Treaty, which it initiated with regard to Spain and Portugal. In Portugal’s case the procedure was closed,
since there was no VAT exemption, only repayment after taxation. In order to ensure identical treatment
of both Member States, which were in a similar situation, and given that Spain financed the exemption
from its own resources, the Commission decided to close the procedure against Spain too.

As to the alleged discrimination against religions other than Catholicism, the Commission would point out
that, as Community law stands at present, the financing of religious institutions falls entirely within the
sphere of competence of the Member States.