Brussels, 03/01/2005 (Agence Europe) - As reported in Europe on 21 December, the Commission is taking four Member States to the European Court of Justice for VAT and customs issues.
VAT. The Commission argues that the Austrian simplified tax scheme which it applies on passenger transport operators established in other Member States or certain third countries and which does not comply with the Sixth VAT Directive (Directive 77/388/EEC). If their annual turnover in Austria is less than EUR 22,000, operators do not have to fill in VAT returns or pay the net VAT. The Commission says that Austria cannot make use of this simplified tax system for small companies because international transport companies do not tend to be small companies and the system appears to operate as a tax reduction, which is outlawed by the VAT directive. The Commission is taking Finland to the Court of Justice because it has maintained the obligation, in certain circumstances, for foreign businesses engaging in economic activity in Finnish territory to designate a tax representative, despite the entry into force of Directive 2000/65/EC which was intended to eliminate such obligations. The Commission argues that the obligation is not justified for tax controls. In Luxembourg, foreign businesses not established in Luxembourg suffer unjustified problems because of over-long delays in receiving VAT refunds (which can date back to the year 2000, although the eighth VAT directive, Directive 79/1072/EEC, sets a 6 month deadline from the date reimbursement is requested). The Commission notes that it has already taken Italy to court for a similar case.
Debt collection. Despite a Reasoned Opinion sent in December 2003, the European Commission has decided to refer Italy to the European Court of Justice for failing to notify it of national measures implementing Directive 2002/94/EC on mutual assistance for the recovery of tax claims. The directive sets out practical measures applying to Directive 76/308/EEC on mutual aid for the recovery of tax debts, seen as an important link in the chain of cooperation between national tax authorities in combatting fraud.
Customs. The Commission has decided to bring an action in the Court of Justice against Italy for imposing the Sicilian environmental tax. The Commission considers that this tax, which is essentially levied on natural gas from Algeria, infringes the European Community's Common Customs Tariff and runs counter to the basic principles governing the common commercial policy and the EU's international obligations under the Cooperation Agreement with Algeria. The Italian authorities have not replied to the reasoned opinion sent to them in July 2004 in this connection.