WRITTEN QUESTION E-0896/03 by Klaus-Heiner Lehne (PPE-DE) to the Commission. The German tax authorities' practices with regard to turnover tax.
Date: 2003-03-21
Institutions: European Parliament, Provisional data
Subjects: Germany, VAT, application of EU law, head office, interpretation of the law, intra-EU trade, tax law, tax system

8.4.2004

EN

Official Journal of the European Union

C 88 E/335

Joint answer
to Written Questions E-0867/03 and E-0937/03
given by Mr Patten on behalf of the Commission

(30 April 2003)

The political, economic and social crisis remains unresolved in Venezuela and the high grade of
polarisation creates serious difficulties in finding a rapid solution. The Venezuelan Government has been
ambivalent towards the international community (notably the Organisation of American States (OAS)) in
supporting the current negotiations with the opposition, and the latter is afraid that the President will use
dilatory tactics to postpone a possible revocatory referendum to 2004. The economic situation will not
improve significantly in the short run. A contraction of 20 % of gross domestic product in 2003 is
forecast, which will cause higher unemployment, a decline of the standard of living and an increase in
poverty. Government income will probably not reach pre-general strike levels during this year, which will
make it difficult to satisfy social demands.

The Commission and the Member States are following the situation in Venezuela with great attention. Pre-
occupied by the evident split of society into supporters and opponents of President Chávez, the Union has
emphasised, as has the OAS, the need for a peaceful, democratic, constitutional and electoral solution to
the crisis. Two Member States (Spain and Portugal) are members of the ‘Group of Friends’, which has been
created to support the OAS in its efforts.

There is no specific aid agreement between the Community and Venezuela, co-operation is based on the
‘Framework Agreement on Co-operation between the Community and the Andean Community’, which
entered into force in 1998. A Memorandum of Understanding between the Community and Venezuela,
signed on 15 October 2001, allocates an amount of EUR 38,5 million to bilateral co-operation for 2000-
2006. It foresees support to Venezuela in the areas of reconstruction and prevention of disasters and
economic diversification. An additional amount of EUR 25 million was made available to support the
rehabilitation process.

Beyond this,
in response to the current crisis, the Commission is financially supporting the OAS in
facilitating the ongoing dialogue between the parties and the implementation of possible agreements on
three main points: free and fair elections, investigation of the events of April 2002 and disarming the
civilian population. The Commission is also prepared to send an electoral observation mission, if the
referendum takes place.

Under the Community contribution towards operations in developing countries carried out by non-
governmental organisations (Budget line B7-6000), the Commission is considering giving priority to
proposals related to the social sector in Latin American countries, including Venezuela.

The Commission has not taken any specific action to protect Union citizens in Venezuela. Their protection
and support is normally ensured by their countries of origin.

(2004/C 88 E/0342)

WRITTEN QUESTION E-0896/03

by Klaus-Heiner Lehne (PPE-DE) to the Commission

(21 March 2003)

Subject: The German tax authorities’ practices with regard to turnover tax

The German tax authorities are increasingly requiring firms not based in Germany to pay German turnover
tax when goods are sent from the firm’s place of business to customers in Germany. They take the view

C 88 E/336

Official Journal of the European Union

EN

8.4.2004

that sellers based abroad owe German turnover tax because they deliver to German customers. This is also
the case when the goods are not transported directly to the German buyer, but placed in a warehouse by
the haulage company contracted by the seller for the purpose of checking that the order is complete and
in perfect condition. Only once the buyer has paid for the goods and they have been checked does the
non-German seller release them from storage, i.e. the buyer collects them or has them collected. The
German tax authorities work from the principle that, in spite of there already being a definite buyer, these
goods are first transported to Germany for the seller’s own purposes. This greatly obstructs intra-
Community trade with Germany.

1.

How does the Commission view the German tax authorities’ interpretation of the law?

2. What measures will the Commission take if
authorities violates Community legislation on turnover taxes?

it

judges that

the behaviour of the German tax

Answer given by Mr Bolkestein on behalf of the Commission

(7 May 2003)

The Honourable Member’s question concerns the place where goods are deemed to be supplied when
sellers established outside Germany sell to customers resident in Germany if the goods are first placed in
the haulage company’s warehouse where the buyer comes to collect them.

The answer depends on the circumstances specific to each transaction and the actual terms of the contracts
between the sellers subject to VAT and their customers. In particular, the issue is whether the goods were
transported as part of the supply or with a view to a possible supply.

The Commission is already aware of the matter raised by the Honourable Member and intends to contact
the German authorities to clarify details of the practice.

(2004/C 88 E/0343)

WRITTEN QUESTION E-0900/03

by Richard Corbett (PSE) to the Commission

(21 March 2003)

Subject: Internal market restrictions

1.
Is the Commission aware that Italy appears to be using technical administrative procedures as a
protectionist device to squeeze out trade from companies from other Member States? In particular,
SKOPOS Design Ltd of Dewsbury in Yorkshire obtained, over a year ago, the ‘certificato di classificazione
di reazonaone al fuoco’ necessary to sell its products in Italy, but is still waiting for the ‘homologation’
from the Ministero dell’Interno. I personally wrote to this Ministry on 20 November 2002 and as yet have
had no response.
the Italian Permanent
Representation to the European Union in Brussels about this matter and have had no satisfactory response
either.

I have subsequently written twice to the Ambassador of