92001E2420

WRITTEN QUESTION E-2420/01

by Baroness Sarah Ludford (ELDR) to the Commission

(3 September 2001)

Subject: Statement of value added tax

In some European Member States it is common practice for prices to be quoted exclusive of value added tax, for example on menus in restaurants and on products in shops. This can create confusion for travellers and visitors from other Member States as the price which is payable is different from the price quoted.

Can the Commission say if there are any proposals to encourage Member States to require prices to be quoted inclusive of VAT?

Answer given by Mr Byrne on behalf of the Commission

(18 October 2001)

A number of actions have already been taken at the Community level to ensure full transparency on prices paid by consumers. Community legislation imposes common basic standards for price indication throughout all Member States. The most important and recent example is Directive 98/6/EC of the Parliament and of the Council of 16 February 1998 on consumer protection in the indication of the prices

of products offered to the consumer(1). Member States were required to implement this Directive by March 2000. The Directive's full text is available on: http://europa.eu.int/comm/consumers/policy/developments/pric_indi/index_en.html.

VAT is expressly included in the definition of selling price and unit price in Article 2 (a) and (b) of Directive 98/6/EC. The Directive includes in Article 4(1) a general obligation to indicate the selling price and the unit price. Only limited and optional exemptions are permitted, none of which provides for leaving taxes out of these prices.

It is the obligation of the Member States to properly implement the above-mentioned provisions.

(1) OJ L 80, 18.3.1998.