CELEX: C2003/226/12
Language: en
Date: 2003-09-20 00:00:00
Title: 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

C 226/8               EN                       Official Journal of the European Union                                              20.9.2003
     auction of works of art, antiques and collectors" items            Social and Tesoreria General de la Seguridad Social on the
     imported under temporary importation arrangements,                 following questions:
     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;
                                                                        1.    Do Article 12 and Articles 39 to 42 of the Treaty
                                                                              Establishing the European Community and Article 45 of
2)   order the United Kingdom to pay the costs.                               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
Pleas in law and main arguments
                                                                              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-
The Commission takes the view, that by not taxing the auction-                lation and of conferring entitlement to the old-age pen-
eer's profit margin on imported works of art, collectors"                     sion, when, because of a long period of unemployment,
items and antiques at the standard rate, the United Kingdom                   supposedly protected, it is absolutely impossible for that
has failed to comply with its obligations under the above                     worker to obtain credit for retirement contributions other
mentioned articles of the Sixth VAT Directive.                                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
In the Commission's view, there are two taxable events for                    and are unable to qualify for the national retirement pen-
VAT purposes in cases of importation and sale by auction: an                  sion, despite the fact that, under Article 45 of the afore-
importation of goods within the meaning of Article 7(1) and                   mentioned EEC Regulation, those qualifying periods would
a supply of goods within the meaning of Article 26(a).                        have to be regarded as completed?
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            2.    Do Article 12 and Articles 39 to 42 of the Treaty
on the total value of the goods after the sale, and then be                   Establishing the Community and Article 48(1) of Council
charged again at the standard rate on the auctioneer's profit                 Regulation (EEC) No 1408/71 of 14 June 1971 preclude
margin.                                                                       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
(1) Sixth Council Directive 77/388/EEC of 17 May 1977 on the                  for the purposes of determining whether the total duration
    harmonization of the laws of the Member States relating to turn-          of insurance periods or periods of residence covered by the
    over taxes — Common system of value added tax: uniform basis of           legislation of that Member State amounts to one year,
    assessment, OJ L 145, 13.6.1977, p. 1.                                    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
Reference for a preliminary ruling by the Juzgado de lo                       national law and are unable to qualify for the national
Social No 3 de Orense by order of that Court of 24 June                       retirement pension, despite the fact that, under Article 48
2003 in the case of Cristalina Salgado Alonso against                         (1) of the aforementioned EEC Regulation, the national
Instituto Nacional de la Seguridad Social and Tesoreria                       benefit agency could not be alleviated of the obligation
                General de la Seguridad Social                                to award national benefits?
                        (Case C-306/03)
                        (2003/C 226/12)
Reference has been made to the Court of Justice of
the European Communities by order of the Juzgado de lo                  (1) Regulation (EEC) No 1408/71 of the Council of 14 June 1971 on
Social No 3 de Orense (Social Court No 3, Orense) of                        the application of social security schemes to employed persons and
24 June 2003, received at the Court Registry on 17 July                     their families moving within the Community (English special edi-
2003, for a preliminary ruling in the case of Cristalina                    tion: Series II Chapter 1971(II), p. 416).
Salgado Alonso against Instituto Nacional de la Seguridad