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Document 91996E001937

WRITTEN QUESTION No. 1937/96 by Enrico FERRI , Pier CASINI to the Commission. Preventing value-added tax from being charged on national and regional taxes on the consumption of methane gas

OJ C 365, 4.12.1996, p. 54 (ES, DA, DE, EL, EN, FR, IT, NL, PT)

European Parliament's website

91996E1937

WRITTEN QUESTION No. 1937/96 by Enrico FERRI , Pier CASINI to the Commission. Preventing value-added tax from being charged on national and regional taxes on the consumption of methane gas

Official Journal C 365 , 04/12/1996 P. 0054


WRITTEN QUESTION E-1937/96 by Enrico Ferri (PPE) and Pier Casini (PPE) to the Commission (16 July 1996)

Subject: Preventing value-added tax from being charged on national and regional taxes on the consumption of methane gas

The inclusion of value-added tax as well as national and regional consumption taxes in the taxable amount applicable to supplies of methane gas pursuant to Article 10 of Decree Law No 15/977 has led to disparities in treatment at Community level and given rise to serious doubts about the legality of such action at national level.

Italian consumers pay more for methane gas than consumers in any other country owing not only to the cost of the raw material but, above all, to a steady increase in the burden of taxation which, in the space of only a few years, has risen to over half of the consumer price.

The sixth directive on the harmonization of the laws of the Member States with a view to establishing a 'common system of value-added tax' (Directive 77/388/EEC ((OJ L 145, 13.6.1977, p. 1. ))) states explicitly and unequivocally that 'the taxable amount shall include: (a) taxes, duties, levies and charges, excluding the value-added tax itself' (Title VIII, Article 11(2)).

In view of the position regarding legislation in the various Member States, the only way of derogating from the generally accepted principle that taxes may be levied on other taxes is by means of Community legislation.

Given the above, would the Commission take the necessary steps with a view to the adoption of a directive amending the relevant national legislation so as to prevent (where possible) VAT from being charged on national and regional consumption taxes applying to supplies of methane gas?

Answer given by Mr Monti on behalf of the Commission (17 september 1996)

The basic concept of value added tax as a general and comprehensive consumption tax implies that the taxable base is valued by the final consumer's real expenditure on goods and services or, in other words, by the monetary consideration for a given supply of goods or services. It is therefore coherent to include taxes, duties, levies and

charges, excluding the value tax itself in the taxable amount. Article 11 A (2)(a) of the sixth VAT Directive 77/388/EEC is fully in line with this principle of value added tax. Accordingly there has been no discussion between Member States on this provision. The Commission does not plan to change this arrangement.

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