07/05/2010 (Agence Europe) - In Ruling C-311/09 of 6 May 2010 on a case referred by the European Commission on 4 August 2009, the European Court of Justice rules that Poland has failed in its duties under Council Directive 2006/112/EC on the common VAT system by improperly levying a standard fee on international road transport companies headquartered or registered outside Poland. The standard fee is charged irrespective of the actual distance driven or the amount charged for the delivery in question. Moreover, the Polish VAT recovery system does not allow international transport companies to deduct the VAT paid on products needed for their work (like fuel). The Polish system also requires passenger transport companies registered for VAT to submit a statement to the tax office where they cross the border to enter Poland declaring the amount of tax due and to pay the tax at the same customs office, which introduces border-crossing formalities. The Court of Justice therefore ruled that Poland has infringed Directive 2006/112/EC and has instructed to pay legal expenses. (F.G.)