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Image header Agence Europe
Europe Daily Bulletin No. 8255
Contents Publication in full By article 26 / 44
GENERAL NEWS / (eu) eu/taxation

Formal request sent to United Kingdom so that it applies information system on VAT and excise in Gibraltar

Brussels, 15/07/2002 (Agence Europe) - The European Commission has decided to send a formal request to the United Kingdom to rectify the fact that the EC Directive on mutual assistance in the tax field is not applied in Gibraltar as far as VAT and excise duties are concerned. The request is in the form of a reasoned opinion, the second stage of the infringement procedure provided for in Article 226 of the EC Treaty. In the absence of a satisfactory amendment to the UK tax rules within 2 months, the Commission may refer the matter to the Court of Justice. When the United Kingdom joined the EU, EC measures on the harmonisation of legislation did not apply to Gibraltar. However, the Commission does not consider Directive 77/799/EC to be a measure aimed at tax harmonisation but just information exchange there is therefore no reason why Gibraltar should not apply the Directive to VAT and excise duties.

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