Brussels, 27/02/2012 (Agence Europe) - On Monday 27 February, the European Commission sent two reasoned opinions to Belgium and one to Germany, calling on the two countries to bring their respective tax legislation into line with European legislation within two months, or the matter could be brought before the Court of Justice of the EU.
Belgium. - Belgian legislation, which requires the European Union to pay the contributions included in its invoices for the consumption of gas and electricity in buildings occupied by its institutions in Brussels, does not comply with the provisions on tax exemptions enjoyed by the European institutions on Belgian soil. In parallel to the infringement proceedings opened by this violation of European law, the Commission has also brought proceedings under Belgian law to call on the country to return money unlawfully received (€4 million between 2004 and 2008). - Reduced registration duty, agreed to at the time of the purchase of a primary residence in the Brussels Capital Region, on condition that the purchaser remains resident in the region for five years, or have to make a full retroactive payment of the full duty; these rules discourage the free movement of people. - Income tax credits for physical persons agreed to in Flanders for venture capital investments (money earmarked for share subscription or ARKimedes fund stakes) discourage the free movement of salaried workers and therefore run counter to EU rules. These tax credits are granted only under the condition that investors are resident in the Flemish region, so that those domiciled in other member states for tax purposes are excluded, even if their principal tax liability is on Belgian soil, due to their activities in the country.
Germany. The reduced rate of VAT applied in this country to all supplies and hire of works of art and collectors' items is incompatible with EU law. In fact, the list drawn up by the EU of goods and services to which the member states are allowed to apply a reduced rate of VAT does not include artworks or collectors' items, or rental services for these goods. The usual rate must therefore be applied to them. (FG/transl.fl)