WRITTEN QUESTION E-0569/03 by Freddy Blak (GUE/NGL) to the Commission. Refund of registration fee in respect of exports from Denmark.
Date: 2003-02-28
Institutions: European Parliament, Provisional data
Subjects: Denmark, free movement of goods, re-import, tax rebate, tax system, used goods, vehicle registration, vehicle tax

8.4.2004

EN

Official Journal of the European Union

C 88 E/13

doctors in Eastern Slovakia. The report raised also other human rights violations such as discriminatory
access to health-care resources and treatment.

Forced or coerced sterilisation of women is punishable under Slovak legislation.

The Member of the Commission responsible for Enlargement has immediately addressed this issue in a
letter to Slovak Prime Minister Dzurinda, underlining that these allegations are a matter of serious concern
and if proved to be true, would constitute a serious breach of human rights. He has asked the Slovak
authorities to vigorously carry out the necessary investigations, remedy possible discriminatory measures
and keep the Commission informed about the proceedings.

The Commission has been informed that Slovak Deputy Prime Minister Csaky instructed the competent
authorities to launch the necessary investigations.

(2004/C 88 E/0013)

WRITTEN QUESTION E-0569/03

by Freddy Blak (GUE/NGL) to the Commission

(28 February 2003)

Subject: Refund of registration fee in respect of exports from Denmark

In 2002, the Danish Government introduced a system for refunding registration fees on exported motor
vehicles.

§ 7b, paragraph 3 of the relevant law, No 977 of 2 December 2002 on registration fees for motor vehicles,
states that 15 % of the amount of the fee prescribed in paragraph 2 shall be deducted.

However, § 1 of the same proclamation states that a fee is payable in respect of motor vehicles to be
registered under the Road Traffic Act.

This means in practice that 85 % of the registration fee is refunded when a motor vehicle is exported but
that, if it is re-imported, the full fee is payable, making a difference of 15 %.

Will the Commission say whether this system, which is akin to customs duties, is consistent with the
provisions on freedom of movement for goods across borders in the EU (e.g. Articles 23 and 25 of the
Treaty)?

Supplementary answer
given by Mr Bolkestein on behalf of the Commission

(6 August 2003)

In the framework of the Communication of the Commission to the Council and the Parliament ‘Taxation
of passenger cars in the European Union (cid:1) options for action at national and Community level’, issued on
9 September 2002 (1),
the Commission urged Member States to introduce a refund system for the
registration tax where a used car is delivered on sale to another Member State or exported to a third
country. In the same document it was also suggested that the way of calculating the residual registration
tax to be refunded should be the same as in the case of import of used cars from other Member States.

In July 2002, Denmark introduced in its legislation a refund system for the registration tax in respect of
vehicles leaving Danish territory. Under this system, the registration tax to be reimbursed is calculated in
exactly the same way as when a car is initially registered in Denmark. In this regard, the tax on new
vehicles is charged on the basis of the retail price including customs duty, VAT and profit margin, but
excluding the tax itself. Used vehicles are taxed in the same way, although the actual retail price is
estimated in a valuation procedure where the vehicles are compared to similar vehicles on the Danish
market.

C 88 E/14

Official Journal of the European Union

EN

8.4.2004

Where a registered vehicle leaves Danish territory, 85 % of the registration tax calculated as described is
refunded to the exporter. The reduction of 15 % is applied in order not to give refund on the commercial
profit assumed to be included in the tax-inclusive price of the vehicle.

In his question, the Honourable Member points out that the registration tax refund of 85 % that is
reimbursed when vehicles are exported from Denmark, is then re-imposed with no reductions should the
same vehicles be re-imported (and re-registered) in Danish territory.

Once a vehicle is re-imported to Denmark, the registration tax is calculated on a taxable basis that is
assessed mainly on the value of the car at the time it is re-imported. In this regard, it is worth noting that,
in real terms, the amount of the tax to be paid at the time the vehicle is re-imported will not be the same
as the amount paid when the vehicle was first registered in Denmark, due to the depreciation on its value.

Therefore, the difference between the tax initially reimbursed at the export and the tax actually paid on re-
importation of the vehicle will not amount to 15 % as the percentage is calculated on a different amount.

This being stated, it must be pointed out that, as an internal tax, the registration does not fall within the
scope of application of EC Treaty’s provisions dealing with customs duties and charges having equivalent
effect (Articles 23 to 25) but under the taxation provisions (Articles 90 to 93).

According to Article 91 of the EC Treaty, Denmark is not required to make any repayment of internal tax
on the export of tax paid goods. Member States are simply prohibited from repaying at export more tax
than was originally paid within the country.

However, since the entry into force of the Danish refund system is quite recent, the way it is applied in
practice is still a matter of future analysis.

Moreover, according to the above-mentioned Communication, the Commission intends to propose ‘general
rules with regard to the method of calculation of the registration tax on used cars imported from other
Member States’. Of course, such a proposal would also take into account the rules to be applied to refund
systems in the case of export.

(1) COM(2002) 431 final.

(2004/C 88 E/0014)

WRITTEN QUESTION E-0609/03

by José Ribeiro e Castro (UEN) to the Commission

(3 March 2003)

Subject: EU/East Timor 1999-2003: cooperation, development, human rights, assistance, etc

For the years 1999, 2000, 2001, 2002 and 2003 and with regard to East Timor, can the Commission
provide information on the following:

(cid:1) What programmes have been or are being undertaken by the EU with East Timor?

(cid:1) What are the funds allocated?

(cid:1) What is the expected duration of the individual programmes?

(cid:1) What results have been obtained by the programmes, and what assessment has been made of their

success or otherwise?

(cid:1) What particular developments have characterised each of the programmes?