CELEX: 51975PC0527
Language: en
Date: 1975-10-24
Title: Proposal for a COUNCIL DIRECTIVE on tax exemptions within the Community for certain means of transport temporarily imported (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 527
Vol. 1975/0199
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION OF THE BUROPSÀN COMMUNTTIES
                                                 COM(75)527 final
                                                 Brussels . 24 October 1975
                              Proposai for a
                             COUNCIL DIRECTIVE
      on tax exemptions within the Community for certain means
      of transport temporarily imported
         ( submitted to the Council by the Commission )
   COM(75 ) 527 final .
 ---pagebreak---                              EXPLANATORY MEMORANDUM
       General considérations
              The international convention relating to the temporary importation
    of private road vehicles , signed in New York on k June            and the .,
   international convention on the taxation of road vehicles for private
   use in international circulation , signed in Geneva on iS May 1956 * no
 . longer meet in . full the needs of the Common Market , and a solution has
 . therefore had to be found , at Community level and in line with Community
   requirements , for the problems arising when various means of transportation
   oross internal Community frontiers c
             The concept of an internal market necessitates relaxation of the
   conditions previously agreed , for the duty-free movement within a Member
" State . of means of transportation belonging to the residents of > another
   Meqber State , 'and the intra-Community use of private . cars , for business
   purposes . In fact , it has become clear that improvements were needed in
   both these fields , one aim being to avoid double taxation and to reduce
■ frontier formalities#
             The present proposal for a directive is designed to establish
   a system of tax exemptions applicable in the Community to the various means
   of transportation, used for private purposes by individuals and to private
   cars used for business purposes by natural persons . The exemptions will
                ■ r    *v
   be available under intra-Community arrangements only to Member States'
   ireaidents .     "■                        ' ;
   f..    ■ The proposed- system - will make . it possible to, dispense with the
   levying of taxes j in- the country of temporary importation , on certain
   means - of- transportation for. private use and on private cars used for
   business purposes in the Community . Excepted from these provisions are
   those taxes deriving from an immediate use of these vehicles in the country
   of temporary importation , such as taxes on fuel , repairs , parking charges
   and highway tolls , etc .
 ---pagebreak--- II « Commentary on the articles
 Articles 1 and 2
               The purpose of Article 1 is to grant exemption at importation ^
  for the means of transportation quoted , from all the taxes charged in a
 'Member State , whether :. these taxes arise from the acquisition , the entry
 into use . or the use itself of these means of transportations .
   •   •! i.                    . V.
               Article 2 contains a number of definitions , Attention is drawn
 to the qlefinition <?f business use of a means of transportation . Thus a
 private car used to travel to work is not used for "business purposes ",
 but a car whic^h is indispensable for the execution of the work itself
 does come under this definition .
 Article 3 T ; .          ,;                        >          .
     '         Article 3 enables à Communit'y résident to import tempbrarily
 duty free into a Member State , other than that of his residence ,- certain
 means of transportation from another Member 1 State of. the Community- pro­
 vided the vehiclie is for private use only and that he does not dispose
 of or lend the means of transportation in the Member State of temporary
 importation . In order to take account of a specific 1 problem which arises
 for car hire., a special arrangement has been included which detracts
 partly from these principles#
 Article 4
             • Article   .allows , under certain conditions , the business , use of
 private cars in the Member State of temporary importation^ In addition
 to the provisions laid down for other means of transport , the private
 car must have been acquired under the general conditions of taxation of
 the domestic market of the Member State of registration and must not
 have enjoyed , because of exportation , a.ny -consumption tax refund or
 exemption^                                   *' • •     * "      -
 Article 5                   ■       • .• •       •                       - .
               Article 5 provides for a duty-free amount of 125 u»a»' for portable
 tools , commercial literature and non-marketable samples which are
 transported by temporarily imported vehicles® The article does , however ,
 provide for exceptions * The normal formalities apply for items exceeding
 125 u«a » in value .                                                               /
 ---pagebreak---                                   ~ 3 -
Article 6
         Because riding horses can easily become the object of various
trading deals , no. blanket authorization appears possible for their
temporary importation
         However , in order to eliminate obstacles to -riding excursions s
exemption can be granted , on application , to riders in accordance with
the terms provided for in this Article®
Articles 7 and 8                        .. .
         Articles 7 and 8 establish general and supplementary rules for
proving residential status e Both definitions refer , of course , to the
same concept of residence - that of principal >- residenc6 « However , the
supplementary rules provide a set of criteria and presumptions with more
substantial evidential value , which gives the State of temporary
importation a better guarantee as to the residential status of the
natural persons concerned®
         Hence , if the place of principal residence does nofe appear to
have been proved as fully as is desirable on the basis of the general
rules , the authorities of the Member State of temporary admission will
have power , where a private car is being used for business purposes , to
request all appropriate additional information#
         In exceptional cases , the authorities of the State of temporary
importation can request security . This security must be refunded within
two months where the natural person provides a certificate of liability
for all earned income with regard to the income tax of another Member
State * The Member State of temporary importation must consequently show
that , for the current year , the individual whose principal residence is
disputed has in fact established this residence in that Member State .
         The limitation of Member States' scope in demanding security is
justified by the anxiety to harmonize frontier formalities and to avoid
extensive resort to the usage of securities which constitutes a by no
means negligible obstacle to free movement . Moreover , no possibility
of fraud is to be feared since either the importer is not a resident of the
 ---pagebreak--- Member State of temporary importation and, therefore , the security1 will
be unnecessary , or the centre of business activity of the importer for
the Current year is in fact in the State of temporary, importation , and
this State will therefore be in a position to prosecute effectively :-
the person Concerned# .             . •
Art ici a 9                     ,,          ;
          This proposal contains a number of measures which are to be
regarded as a minimum to be accepted by all the Member Stat.es . . Thepe is
no reason why the Member States should not take other measures
implementing further the principle of freedom movement of persons within
the Qommunity * However , the criteria for the establishment of. residence
may, in no circumstances be changed lest assurances guaranteed to persons
by the system are jeopardized®
 ---pagebreak---                    Proposal for a Council Directive of •««.»•••••
                   on tax exemptions wiifiiiiu          CoGumlty far 'fcrfcin
                   t&onBiot . 'trimcjjort                itfoorted" *  'T ' : " -s
  THE COUNCIL 0? THE EUROPEAN COMMUNITIES ,
  Saving regard to the Treaty establishing the European Economic
  Community , and in particular Article 99 thereof $
  Having regard to the proposal from the Commission ^
  Having regard to the Opinion of the European Parliament ^
 Having regard to the Opinion of the Economic and Social Committee?,
  Whereas the freedom of movement of Community residents within the
  Community is hampered by the taxation &mmfc@e£iefita "^piisd So -tlto izr?i*xct,Ty
  importation of certain means of transportation for private or business
 use ,
  whereas the elimination of the obstacles resulting from these taxation
               nos* ri® - Jiohi^véd; ifh mc©ûo?fciîia M&kêt           featofrôs eiiiî^>.rr
  to those of a domestic market is to be established ,
Tji.iereas it must be possible , in certain cases , to establish definitely
 whether or not a person Jsjdjfcsf&dfc                                             ven
 State *
 HAS ADCPTED THIS DIRECTIVE ;
 ---pagebreak---                                        Article 1
                               Field ofi iw application
                              ■fcrxsw.nl    I<tw i «M i.gj.7««.i-Or>–
Every Member State shall , in accordance with the provisions hereinafter
set out , exempt certains means of transport temporarily imported from another
Member State from -turnover tax, excise duty, other consumption taxes , taxes
on the use and/or for entry into use of vehicles and taxesdlevied -on the
possession or use of motcr»driven road vehicles , includIr            railere but
excluding commercial vehicles 3 o5 caravans j of pleasure 'to^t3 ? of private
aircraft » of bicycles and of riding hos-ass . lbs exemption ehaU not
oover temporary residence taxes levied on tourists or charges made for
services rendered#
                            ;        AHbaole 2
                                    Je fInitions
In thi3 Directives
v a ) "private par" means any motor-driven vehicle used for the transport
of persona whifih contains not more than eight seats in addition to the
driver's seat ;
(b ) "oornmo.ro? al vehicle" means any vehicle which , in design and etjuipment
is suite.ble for and intended for the transport of :
      ( aa) more than nine persons , including the driver ;
      (bb ) goods ;
( c ) "business use*? of a meass of transport means the use of that means of
transport in the direct exercise of an activity carried on for consideration
or with a view of profit ;                                                   '
fd ) ^private use ", any use other than business use .
 ---pagebreak---                                                '.Article 3
Hhere an individual imports temporarily, a motor–driyen road vehicle
                    1        c     ...      *    •              ...     t
 (including trailers "but excluding commercial vehicles ), caravan, pleasure
"boat , private aircraft or "bicycle , the item imported shall "be exempt ,
for a period of six months in any twelve months , from the taxes specified
 in Article 1 , provided that 3                                               ,
 (a) the individual importing such goods *
      (aa) has his principal residence in a Member State of the Community other
                 thaa ih*n into which tiie property is temporarily imported ;
      ("b"b ) employ the nean3 of transport in question for his private usej
 ( ID ) the said means of tranpoxt is not disposed of or hired out in the
           Kesibsr State of temporary iajportation or lent to a* resident of. '-that
           Staie» Ilomv&r9 private oars belong sag to a car-4iire firm having its
   vvihead' 6fflce-'iia .- the . CasmaAty map be r-e®4iired to a non#resident 6£'v j .
      •?. .the .-State -- of -tieoporary itspsrfcation for 'the reexportation of the
 vol.i^xicrie , or returned "by an enplcyoe of the oar^ire firm,-. to-.-the >•
           liv. '1' vt Ståte            i* ues                      av&l it muh émpioyee is'
 ra - resident in., the Meribs'r. State 'of', tempor-a-ry. import ationi           r      s
                                 •   „•   .    Arti ole    4.
                                                     xstsar-*
                                                              ,       .   ...   ^ *
                                                                                        <
 Temporary iranOrta*ion -: of -private W9 f otv Tro^in^.ss: use
 A private orvr imported temporarily for Ty^^Jiess . use shall he exempt for
 six ^orrthc in any twelve mors: is . from .the .treats . specified in Arwixsle 1
 profiled th.-.t %
  (a) the np.turl person importing the private car ;
            (aa.-) kas his principal residence in a Kember State of the Community
                      other than that of t©aj3orr>jpy teporfcation?
            (ht) does not use his car in vl,e Kaoiber State of temporary importation
                      in order to carry paae-sssgesrs for hire cr naterlal rt^nrd of aay
                      kind , or for the transport of goods , whether for reward or not ?
 ---pagebreak--- ("b) the . private car is not disposed of, hired out or lent in the
       Member State of temporary importation} .
(c) the private oar has been, acquired in accordance with the general conditions
       of taxation in force on the domestic market of the Member State of
       registration and has not been subject by reason of its exportation to
       any exemption or refund of turnover tax, excise du±y or any other consumption
       taac#ro
       This condition shall be presumed to be satisfied if the private oar
       bears a registration plate from the normal series of the Member State
       of registration, all types of temporary plates being excluded*
       However, * in' the case of private cars registered in a Member State where
       the issue of number plates from the normal series is not conditional
       upon oompliance with the. general conditions of taxation in force on the
       domestic  market, users shall be required to prove, by the^yoduction
       of any appropriate evidence , payment of consumption taxes .
                                   Article 5
Importation of tools , commercial literature and trade floppies in vehicles
imported dutyfree                                       ' •
1 ■ Portable tools temporarily imported in temporarily imported vehicles,
and commercial literature and non-marketable sampler imported in
such vehioles , shall be exempt , without special authorization, from the
taxes specified in Article 1 .
                                    tf   . v 1 «: ' :t, ;•  ' '•
( 1 ) It is suggested that the following declaration be included in the
       minutes of the appropriate Council meetings
       '^Member States which issue registration plates from the noitaal series
       to motor-driven road vehicles which have not been aquired under the
       general conditions of taxation of the domestio market under-take to
       remedy this situation and to resume the normal series of registration
       plates for vehioles aquired under the conditions of the domestic market#
     ' However, these States may issue normal series registration plates for
       vehioles which have not been acquired under the general taxation conditions
       of the domestic market, where such plates bear an indelible and irremovable
       nark easily recognizable by the authorities resposible for the granting of
       the exemptions referred to in this Directive
 ---pagebreak---  2* Bie exemption refened to in' paragraph 1 shall be subject to the condition
     that the overall value of the goocls concerned does not exoeed 125 units of
     account . However, those items subject to excise dury which are speoified
'in in Article 4 0 ) of Council Directive 69/16$/EEC "of 28 May "1 969® as '
      amended by subsequent Directives , 'shall not qualify for this exemption#                            ,
 3« If the value of the goods exoeeds 125 units of account or if they are
      iters subject to excise duty theiroinpirtation shall not affect the entitlement
     to tax exemption in respect of the vehicle ooncerned.
                                       Artide 6
 Exemption for the temporary importation of horses on horse–riding excursions
 Riding horses imported temporarily into a Member State shall be exempt for
 three months from the taxes speoified in Article 1 provided that ?
 (a) the Baid horses enter the territory of the. Member State of temporary
        importation for the purpose of and/or in the oourse of horse–riding
        excursions by their riders ;
 (b) exemption is requested at the time of entry into the territory of the
        Member State of temporary importation ?   ..
  ... .                   ..     . i.                • «>.               -* vw ....           •      •
 (c) the said horses are neither hired out nor lent to any person other than
                                                               ,« »# •.»« • *»«««•  'v ' " ••   « '•   » *
        the rider, nor disposed of to a third party residing in the Member
        State of temporary importation, aor .used, for purpose? other than that
        of the excursion.    -
                                      Artide 7
 General rules for proving residential status
 For the purposes of this Directive , natural persons sha.ll provide ■
 evidenoe of the place of their principal residence by producing their passport ,
 their identy card, or, in the absence thereof, any other identy. document
 recognized as valid by the Member State of importation.
 ---pagebreak--- Supplementary rules ^ concerning proof 'of residence in "the case of business
use of a private
w»–
                          oar
               •*! n KmCSj»mtn <
1 # Where the competent authorities of the Member State of temporary importation
    have seriaas doubts aa to the truth of a statement as to principal residence
    made on,.the basis of the documents referred to in .Article 7 » those authorities
    may recjacst any appropriate additional information or evidence#
2. Ih , exceptional- oasesj where, even after being provided with the additional
    information referred to in paragraph 1 , the competent authorities of the
    Member State of importation still have doubts , those authorities shall
    authorize temporary importation on the condition that the importer produces
    in respact of a period not -exceeding six..months appropriate security*
    However , where the user of the oar produce's a certificate that ho is liable
    in respect of the totality of his earned income to the income tax of
    another I'amben State ,.- the authorities of the Member State of temporary
    importation;
    (a) not require the security if the certificate is produced at the time
         of importation;
    (b) refill or release the security within two months from the date of
         subsequent production of the certificate *
3. Kie competent authorities of the State of temporary' importation shall
    have power.: to request additional information from the competent
    authorities of the Member State which has issued the certificate referred
    to in paragraph 2t particularly if there is reason to believe that the
    centre of commercial or professional activity of the importer is in
    respect of the current year no longer in that Member State *
4, xhe oompetent authorities shall on request issue to any natural person
    a certificate as referred to in paragraph 2, for production by that person
    to the competent authorities of the Member State of temporary importation#
 ---pagebreak---                                         . . 6   ,
     .       :         i ; ... •       'Artìcle* 9                   .. v
                                  Spécial arrangements
,1 .   The Member States nay iirtro&ioe mo?® liberal'
       arrangements than those provided for in this Directive *
 2»    The Member States shall inform the Commission of these arrangements
       ■tit the bouo tino as tlioy supply "the- information required xm&or Article 10»
                                         Article 10
                                 Miscellaneous orovisions
 1,    Member States shall bring into force the measures necessary to
       comply with this Directive within three months of its adoption
       and shall forthwith inform the Commission thereof .
2«     Member States shall communicate to the Commission the text of the
       main provisions of internal law which they subsequently adopt in
       the field covered by this Directive . ,
                                   ■              'V
 3.    Every two years , the Commission shall , after consulting the Member
       States , send the Council a report - on the operation--*           the provisions
       of this Directive - in tho lIoEbor            -
                                         Article 11
             This Directive is addressed to the Member States#
             Done at Brussels ,