Luxembourg, 18/01/2001 (Agence Europe) - The Fifth Chamber of the Court of Justice which is Presided over by Antonio La Pergola condemned Spain for having applied since 1997 a reduced VAT rate to motorway tolls in violation of the provisions of the European Directive known as "sixth VAT Directive". This does not authorise the application of a reduced rate for "the transportation of people or the luggage that accompanies them". Making available to motorists a road infrastructure through a toll system only allows to carry out a journey in the best conditions, which has nothing to do with the provision of a means of transportation, explained the judges.
The European Commission which had initiated this action against Spain supporting this thesis. Madrid asserted the contrary: - it is necessary to interpret the sixth Directive so as to allow for the application of a reduced rate.
The Court had already condemned France, the United Kingdom and Ireland who did not apply any VAT at all (see EUROPE of 13 September, p.13). The other Member States being in-line with European legislation.
This ruling is the object of the first 2001 "press release" from the Court of Justice, the last dating back to the 14 December 2000. (For the details on all of the last year's rulings see EUROPE of 15 January 2001, p.15, and our next editions).