Summary of EU Taxation

TAXATION

INTRODUCTION
 
DIRECT TAXATION
·     Introduction

Company taxation

·     Common system of taxation 
          - Common taxation of parent companies and their subsidiaries 
          - Mergers, divisions and contributions of assets 
          - Interest and royalty payments made between associated companies

·     Elimination of double taxation 
          - Arbitration procedure  

Individual taxation

·     Taxation of savings 
          - Taxation of savings income
          - Dividend taxation of individuals 
          - Tackling tax obstacles to the cross-border provision of occupational pensions
 
INDIRECT TAXATION

·     Introduction
·     Tax- and duty-free sales
·     Indirect taxes on the raising of capital
·     Taxation of heavy goods vehicles: "Eurovignette" Directive

Value-added tax (VAT)

·     Common scheme for value-added tax 
          - Harmonization of turn-over taxes 
          - Sixth VAT Directive: uniform basis of assessment 
          - Special scheme for gold   
          - Special arrangements applicable to second-hand goods, works of art, antiques and collector's items 
          - Special scheme for labour-intensive services 
          - Special arrangements applicable to services supplied electronically 
          - Special scheme applicable to travel agencies 
          - VAT and electronic commerce

· Exemption and refund of VAT 
          - Exemption for  VAT: final importation of goods 
          - Exemption for  VAT: temporary admission of goods 
          - Refund of VAT: taxable persons not established in the country 
          - Refund of VAT: refunds to non-EEC taxable persons (13th VAT directive)

Excise duties

·     General arrangements 
          - General arrangements for the holding and movement of products subject to excise duty
·     Tabacco 
          - Harmonization of the structure of excise-duties in several stages 
          - Cigarettes: approximation of taxes 
          - Tobacco other than cigarettes: approximation of rates
·     Alcohol 
          - Alcohol and alcoholic beverages: harmonization of structures 
          - Alcohol and alcoholic beverages:approximation of rates
·     Mineral oils
          - Community framework for the taxation of energy products 
          - Reduction of excise duties on biofuels 
          - Fiscal marking of gas oils and kerosene

Tax exemptions

·     Travellers 
          - International travel
·     Small consignments 
          - Small consignments of goods of a non-commercial character from third countries
·     Imports 
          - Permanent imports of personal property 
          - Temporary import of certain means of transport 
          - Permanent or temporary importation of private motor vehicles
 
ADMINISTRATIVE COOPERATION

Direct taxation

·     Mutual assistance by the authorities of the Member States in the field of direct taxation

Indirect taxation

·     Administrative cooperation in the field of excise duties
·     Administrative cooperation in the field of value added tax (VAT)
·     Mutual assistance for the recovery of claims

Training of national officials

·     FISCALIS programme
 
ENLARGEMENT

Applicant countries and the Community acquis

·     Bulgaria
·     Croatia (Candidate country since 2004)
·     Romania
·     Turkey
 
Enlargement of May 2004: 10 new Member States

·     Cyprus
·     Czech Republic
·     Estonia
·     Hungary
·     Latvia
·     Lithuania
·     Malta
·     Poland
·     Slovakia
·     Slovenia
 
Further information: European Commission Taxation and Customs Union Directorate-General