Brussels, 14 May 2009
VAT – The European Commission refers Poland to the Court of Justice on the application of VAT to certain cross-border passenger transport services
The European Commission has decided to refer Poland to the Court of Justice regarding the application of VAT to cross-border passenger transport services supplied by buses registered abroad.
According to the VAT Directive, cross-frontier transport services are subject to VAT in each Member State for the distance travelled therein. Poland has introduced a particular VAT scheme for cross-border passenger transport services supplied on an occasional basis by means of buses registered abroad. This scheme, which applies to the part of the transport taxable in Poland, entails basically the following:
Thus, the scheme leads to VAT due in Poland being collected through payment at the border of an amount calculated on the basis of an average taxable amount per traveller. This scheme deviates from the Community rules since, according to the VAT Directive:
Furthermore, the Polish provisions lead to fiscal cross border controls, thus contravening the essential principles of the internal market.
The Commission sent a reasoned opinion to Poland in June 2008 (see IP/08/1027). As Poland has not amended its legislation within the time limit laid down, the Commission has decided to refer the matter to the Court of Justice.
The Commission's reference number is 2007/4139.
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