91998E3468

WRITTEN QUESTION E-3468/98

by Panayotis Lambrias (PPE) to the Commission

(24 November 1998)

Subject: Regulation of duty-free shops

The Commission's delaying over the regulation of duty-free shops has created confusion among the organizations affected. At the same time, the Member States are taking their own, conflicting measures. Would the Commission, therefore, say what measures it will take, in collaboration with Parliament, to remove the confusion in the minds of the buying public and lay down clear rules to govern the operation of such shops?

Answer given by Mr Monti on behalf of the Commission

(3 February 1999)

Rules for the taxation of goods sold by duty-free shops to passengers travelling within the Community are contained in the general provisions of Council Directive 77/388/EEC of 17 May 1977 on the harmonization of the laws of the Member States relating to turnover taxes - Common system of value added tax: uniform basis of assessment(1) and Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products(2). Until 30 June 1999, Member States may, as a derogative measure under Article 28k of Directive 77/388/EEC and Article 28 of Directive 92/12/EEC, exempt such supplies from VAT and excise duties, subject to certain conditions in terms of value and quantity.

The Commission would like to draw the attention of the Honourable Member to the fact that, according to the EC Treaty, Member States shall take all appropriate measures for the implementation of existing Community legislation.

To facilitate the application of the existing legislation in the specific case of the ending of intra-Community duty-free sales, the Commission met representatives of Member States in order to discuss how existing VAT and excise provisions should be applied to sales to intra-Community air and ferry travellers. Subsequently, the Commission issued a press release(3) clarifying the situation.

(1) OJ L 145, 13.6.1977.

(2) OJ L 76, 23.3.1992.

(3) IP98/858.