Brussels, 24/11/2011 (Agence Europe) - The European Commission decided on Thursday 24 November to refer the Netherlands and Italy to the Court of Justice of the EU, and sent a request for action to be taken to Belgium, because of discriminatory national tax provisions on inheritances (Netherlands), VAT exemption (Italy) and taxation of certain types of income from capital (Belgium). Notice has also been sent to Italy because of its judicial practice on remission and repayment of customs duties.
The Netherlands. The Commission is challenging national discriminatory rules whereby country estates located in the Netherlands are fully or partially (50%) exempt from succession and gift duties, while inheritance or gifts of country estates in other European Economic Area (EEA) states are taxed on 100% of their market value. The Commission formally summonsed the Netherlands on 30 September 2010 but it refused to change its law.
Italy. The Commission is challenging VAT exemption to ships (a letter of formal notice was sent to Italy in May 2009) which grants VAT exemption to commercial vessels not sailing on the high seas and vessels intended for public bodies, thereby going further than what is allowed by the VAT directive. It also excludes some services that should be covered by the exemption, such as, for example, the loading and unloading of vessels sailing on the high seas. This incorrect application of the directive leads to distortions of competition and in collection of that part of VAT that is paid to the EU budget.
Belgium. The European Commission has officially asked Belgium to abolish, within two months, additional taxation of certain types of income from capital deriving from outside the European Economic Area (EEA) and not received/collected by an intermediary established in Belgium. The same income paid by an intermediary established in Belgium is subject only to withholding tax, thus creating discrimination and a hindrance to the free movement of capital. Belgian legislation was amended in May 2011 but only partly corrected the infringement. Thus, a second reasoned opinion was sent.
Finally, the European Commission has formally requested that Italy implement, within two months, proper appeal procedures for companies whose requests for remission or reimbursement of customs duties have been rejected by the customs authorities. According to Italian jurisprudence, given the specific circumstances of these decisions, they cannot be contested because they are supposedly of a political nature, while the EU customs code explicitly provides for the right of appeal against such decisions. (FG/transl.rt)