WRITTEN QUESTION P-2334/03 by Norbert Glante (PSE) to the Commission. Abolition of tax assessment on the basis of estimated earnings through the imposition of restrictions on the right to deduct pursuant to Article 17(6) of the sixth directive on turnover taxes.
Date: 2003-07-11
Institutions: European Parliament, Provisional data
Subjects: VAT, basis of tax assessment, tax relief, tax system, taxable income, type of business

C 58 E/156

Official Journal of the European Union

EN

6.3.2004

A significant legislative measure towards this end was taken by Directive 2001/77/EC (1). This directive
states as its target that the EU Member States should derive 22,1 % of total Community electricity
consumption from renewable energy sources by 2010. No objectives are set beyond 2010.

What progress has been made in the Commission towards setting objectives after 2010?

Has the Commission already drawn up analyses and scenarios providing objectives for 2020?

If so, what are they?

If not, when does the Commission propose to set such objectives?

To what extent are such objectives incorporated into the strategy for reducing greenhouse gas emissions?

(1) OJ L 283, 27.10.2001, p. 33.

Answer given by Mrs de Palacio on behalf of the Commission

(9 September 2003)

First, it is necessary to ensure that the target already set for 2010 will be achieved.

This target requires an increase of more than six percentage points in renewable energy’s share between
1997 and 2010. So far, the increase has been less than one percentage point. Therefore, growth in the use
of renewable energy is too slow to give confidence that the 2010 target will be met. It is important for
Member States to give priority to fulfilling the requirements laid down by the directives on renewable
energy in electricity (1) and on biofuels (2).

As far as targets for 2020 are concerned, the Commission is analysing the matter, drawing on studies that
it is co-financing, and intends to bring forward proposals in due course. The contribution of renewable
energy to reducing greenhouse gas emissions will constitute an important parameter to be taken into
account when considering prospects for 2020, in connection with the overall strategy to fight against
climate change.

(1) Directive 2001/77/EC of the Parliament and of the Council of 27 September 2001 on the promotion of electricity

produced from renewable energy sources in the internal market, OJ L 283, 27.10.2001.

(2) Directive 2003/30/EC of the Parliament and of the Council of 8 May 2003 on the promotion of the use of biofuels

or other renewable fuels for transport, OJ L 123, 17.5.2003.

(2004/C 58 E/169)

WRITTEN QUESTION P-2334/03

by Norbert Glante (PSE) to the Commission

(11 July 2003)

Subject: Abolition of

tax assessment on the basis of estimated earnings through the imposition of
restrictions on the right to deduct pursuant to Article 17(6) of the sixth directive on turnover taxes

Are moves being made in the EU to impose comprehensive restrictions on the right to deduct pursuant to
Article 17(6) of the directive on turnover taxes and so bring about a switch from tax assessment on the
basis of estimated earnings to assessment on the basis of actual earnings in connection with the taxation of
firms’ turnover?

Which EU Member States restrict the right to deduct and thus assess actual earnings, and what successes
have they achieved as regards improving the cash flow of, above all, small and medium-sized firms?

In the EU as a whole are freelance workers assessed, as in Germany, on the basis of their actual earnings
with no turnover tax limit?

6.3.2004

EN

Official Journal of the European Union

C 58 E/157

Answer given by Mr Bolkestein on behalf of the Commission

(12 August 2003)

According to the basic principle of the VAT system, VAT applies to all transactions in the production or
distribution chain from which the VAT charged directly on upstream transactions has been deducted. The
right to deduct provided for in Article 17 et seq of the Sixth Directive (1) forms an integral part of the VAT
system and cannot be restricted.

Nevertheless the principle of the right to deduct VAT is subject to a derogation under Article 17(6) of the
Sixth Directive allowing Member States to retain all the exclusions provided for under their national laws
at the time the Sixth Directive came into force.

On the basis of this provision Member States may apply limitations to the right to deduct VAT on
expenditure which is not strictly of a business nature, and in particular that on accommodation, food and
drink and the use of passenger cars.

In June 1998 (2) the Commission presented a proposal for a Directive approximating the rules governing
the right to deduct VAT on expenditure of both a business and private nature. This concerns expenditure
on passenger cars, accommodation, food and drink, luxury goods, leisure and entertainment to which
Member States apply very divergent rules as regards the deduction of VAT. However, unanimous
agreement has not yet been reached on the proposal within the Council.

Article 17 of the Sixth Directive is a general provision applying to all taxable persons subject to the
normal VAT arrangements. There is no link at Community level between deduction of VAT and taxation
of earnings and there are no plans to create to such a link.

(1) Sixth 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 valued added tax: uniform basis of assessment, OJ L 145,
13.6.1977.

(2) OJ C 219, 15.7.1998.

(2004/C 58 E/170)

WRITTEN QUESTION E-2338/03

by Christopher Heaton-Harris (PPE-DE) to the Commission

Subject: Alcoholic consumption on flights

(16 July 2003)

A number of constituents have raised concerns over how the English are portrayed in Europe. Their
concerns arise mainly from experiences of young people using cheap flights to go abroad for stag and hen
weekends.

Are any statistics or data being collected on violent incidents on flights between European capital cities
arising from or connected with alcohol consumption?

Statistically or anecdotally, is there any apparent association between any increase in violent incidents and
the increasing availability of cheap flights?

What are the statistics for the number of people denied boarding because of alcoholic consumption?

Answer given by Mrs de Palacio on behalf of the Commission

(11 September 2003)

The Commission is not collecting, at present, data on violent incidents during flights between European
airports nor during flights departing from European airports to third countries. The International Civil
Aviation Organisation (ICAO) states that no systematic study of the problem has been carried out so far, as
airlines are mostly focussed on managing the occasional incident rather than on its prevention.