Case C-306/03: Reference for a preliminary ruling by the Juzgado de lo Social No 3 de Orense by order of that Court of 24 June 2003 in the case of Cristalina Salgado Alonso against Instituto Nacional de la Seguridad Social and Tesoreria General de la Seguridad Social
Date: 2003-09-20
Institutions: Court of Justice
Subjects: EU law - national law, free movement of workers, interpretation of the law, pension scheme, unemployment insurance

C 226/8

EN

Official Journal of the European Union

20.9.2003

auction of works of art, antiques and collectors" items
imported under
temporary importation arrangements,
the United Kingdom has failed to comply with its obliga-
tions under Articles 2(1), 5(4)(c), 12(3) and 16(1) of
the Sixth Council Directive of 17 May 1977 (1) on the
harmonisation of the laws of the Member States relating to
turnover taxes;

2) order the United Kingdom to pay the costs.

Pleas in law and main arguments

The Commission takes the view, that by not taxing the auction-
eer's profit margin on imported works of art, collectors"
items and antiques at the standard rate, the United Kingdom
has failed to comply with its obligations under the above
mentioned articles of the Sixth VAT Directive.

In the Commission's view, there are two taxable events for
VAT purposes in cases of importation and sale by auction: an
importation of goods within the meaning of Article 7(1) and
a supply of goods within the meaning of Article 26(a).

Contrary to the view held by the United Kingdom, the VAT
system does not imply double taxation, because it is not
required that VAT at the import rate should first be charged
on the total value of the goods after the sale, and then be
charged again at the standard rate on the auctioneer's profit
margin.

(1) Sixth Council Directive 77/388/EEC of 17 May 1977 on the
harmonization of the laws of the Member States relating to turn-
over taxes — Common system of value added tax: uniform basis of
assessment, OJ L 145, 13.6.1977, p. 1.

Reference for a preliminary ruling by the Juzgado de lo
Social No 3 de Orense by order of that Court of 24 June
2003 in the case of Cristalina Salgado Alonso against
Instituto Nacional de la Seguridad Social and Tesoreria
General de la Seguridad Social

(Case C-306/03)

(2003/C 226/12)

Social and Tesoreria General de la Seguridad Social on the
following questions:

1. Do Article 12 and Articles 39 to 42 of

the Treaty
Establishing the European Community and Article 45 of
Council Regulation (EEC) No 1408/71 of 14 June 1971 (1),
preclude a national provision under which retirement con-
tributions which the unemployment benefit agency pays
on behalf of a worker during the period in which he
receives certain unemployment benefits are not to be
taken into account for the purposes of completing the
various qualifying periods established in the national legis-
lation and of conferring entitlement to the old-age pen-
sion, when, because of a long period of unemployment,
supposedly protected, it is absolutely impossible for that
worker to obtain credit for retirement contributions other
than those which are invalidated by law, with the result
that only workers who have exercised the right to freedom
of movement are affected by that provision of national law
and are unable to qualify for the national retirement pen-
sion, despite the fact that, under Article 45 of the afore-
mentioned EEC Regulation, those qualifying periods would
have to be regarded as completed?

2. Do Article 12 and Articles 39 to 42 of

the Treaty
Establishing the Community and Article 48(1) of Council
Regulation (EEC) No 1408/71 of 14 June 1971 preclude
national provisions under which retirement contributions
which the unemployment benefit agency pays on behalf of
a worker during the period in which he receives certain
unemployment benefits are not to be taken into account
for the purposes of determining whether the total duration
of insurance periods or periods of residence covered by the
legislation of that Member State amounts to one year,
when, because of a long period of unemployment, suppos-
edly protected, it is absolutely impossible for that worker
to obtain credit for retirement contributions other than
those which fall due and are paid during unemployment,
so that only workers who have exercised the right to free-
dom of movement are affected by that provision of
national law and are unable to qualify for the national
retirement pension, despite the fact that, under Article 48
(1) of the aforementioned EEC Regulation, the national
benefit agency could not be alleviated of the obligation
to award national benefits?

Reference has been made to the Court of
Justice of
the European Communities by order of the Juzgado de lo
Social No 3 de Orense (Social Court No 3, Orense) of
24 June 2003, received at the Court Registry on 17 July
2003,
for a preliminary ruling in the case of Cristalina
Salgado Alonso against Instituto Nacional de la Seguridad

(1) Regulation (EEC) No 1408/71 of the Council of 14 June 1971 on
the application of social security schemes to employed persons and
their families moving within the Community (English special edi-
tion: Series II Chapter 1971(II), p. 416).