Brussels, 20/12/2005 (Agence Europe) - The European Commission has sent the Spanish authorities a formal request, the second stage in infringement procedure, to bring into line with Community law some tax commitments made under the agreement between the Spanish State and the Holy See on economic affairs of 3 January 1979. By way of this agreement, Spain grants exemption from value added tax (VAT) on certain supplies of goods made to the Catholic Church. That exemption is not authorised under the European Community VAT system set out in the Sixth VAT Directive (77/388/EEC). The Commission has made it clear that, in so far as the measure or the agreement is not compatible with Community law, Spain must use every appropriate means to eliminate the incompatibilities established. It adds that the Community VAT regime does not, however, prevent Spain from granting the Catholic Church a financial compensation for taxes that it must pay to the Spanish tax authorities. Spain has two months in which to give a satisfactory response, failing which it will be referred to the Court of Justice.