Keywords
Summary

Keywords

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1 . TAX PROVISIONS - HARMONIZATION OF LEGISLATION - TURNOVER TAXES - COMMON SYSTEM OF VALUE-ADDED TAX - VALUE-ADDED TAX LEVIED ON THE IMPORTATION OF PRODUCTS BY A PRIVATE INDIVIDUAL FROM OTHER MEMBER STATES - METHOD OF CALCULATION

( EEC TREATY, ART . 95; COUNCIL DIRECTIVE 77/388 )

2 . TAX PROVISIONS - HARMONIZATION OF LEGISLATION - TURNOVER TAXES - COMMON SYSTEM OF VALUE-ADDED TAX - NATIONAL RULES FOR PENALIZING TAX AVOIDANCE - DIFFERENCE BETWEEN RULES REGARDING IMPORTATION AND THOSE REGARDING DOMESTIC TRANSACTIONS - PERMISSIBLE - CONDITION - NO DISPROPORTION BETWEEN THE PENALTIES

( EEC TREATY, ART . 95; COUNCIL DIRECTIVE 77/388 )

Summary

1 . ARTICLE 95 OF THE TREATY MUST BE INTERPRETED AS MEANING THAT IN THE CASE OF THE IMPORTATION FROM ANOTHER MEMBER STATE BY A PRIVATE INDIVIDUAL OF GOODS IN RESPECT OF WHICH THERE HAS NOT BEEN GRANTED EITHER TAX RELIEF ON EXPORTATION OR TAX EXEMPTION IN THE IMPORTING MEMBER STATE, THE VALUE-ADDED TAX CHARGED ON IMPORTATION MUST TAKE INTO ACCOUNT THE RESIDUAL AMOUNT OF VALUE-ADDED TAX PAID IN THE MEMBER STATE OF EXPORTATION WHICH IS STILL CONTAINED IN THE VALUE OF THE GOODS AT THE TIME OF IMPORTATION, IN SUCH A WAY THAT THAT RESIDUAL AMOUNT IS NOT INCLUDED IN THE TAXABLE AMOUNT AND IS DEDUCTED FROM THE VALUE-ADDED TAX PAYABLE ON IMPORTATION .

2 . ALTHOUGH OFFENCES CONCERNING THE PAYMENT OF VALUE-ADDED TAX ON IMPORTATION AND THOSE CONCERNING THE PAYMENT OF THE SAME TAX CHARGED ON DOMESTIC SALES OF GOODS ARE DISTINGUISHED BY DIFFERENT CIRCUMSTANCES WHICH CONCERN BOTH THE CONSTITUENT ELEMENTS OF THE OFFENCE AND THE GREATER OR LESSER EXTENT OF THE DIFFICULTY OF DISCOVERING IT AND WHICH MEAN THAT THE MEMBER STATES ARE NOT REQUIRED TO HAVE THE SAME SYSTEM OF RULES FOR THE TWO CATEGORIES OF OFFENCES, A MANIFEST DISPROPORTION IN THE SEVERITY OF THE PENALTIES LAID DOWN FOR THE TWO CATEGORIES OF OFFENCES IS NOT JUSTIFIED . SUCH A DISPROPORTION EXISTS WHERE THE PENALTY PROVIDED FOR IN THE CASE OF IMPORTATION INVOLVES, AS A GENERAL RULE, A TERM OF IMPRISONMENT AND THE CONFISCATION OF THE GOODS PURSUANT TO THE RULES LAID DOWN TO COMBAT SMUGGLING WHEREAS COMPARABLE PENALTIES ARE NOT PROVIDED FOR, OR ARE NOT GENERALLY IMPOSED, IN THE CASE OF OFFENCES CONCERNING THE PAYMENT OF VALUE-ADDED TAX ON DOMESTIC TRANSACTIONS . A SITUATION OF THAT KIND, WHICH IS CAPABLE OF JEOPARDIZING THE FREE MOVEMENT OF GOODS WITHIN THE COMMUNITY, IS INCOMPATIBLE WITH ARTICLE 95 OF THE EEC TREATY .