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           With the development of the Internal Market, the resulting
           practical advantages for people in the Community are
           multiplying  all the time.  The disputes arising between
           ordinary individuals  and the tax authorities over imports
           from one Member State into  another of movable property such
           as boats, cars, dishwashers,   fridges, etc. which formed
           part of a removal or which were  acquired second-hand from a
           private person or received as a gift  provided the
           opportunity for the Court of Justice to clarify its  case law
           and for the Commission to do more to ensure that Member
           States comply with Community law.
           With regard to trade between private persons in different
           Member  States, Community law demands that, where goods cross
           an internal  Community frontier, the tax authorities take
           account of VAT paid  in the country of origin.  The Court
           ruled in this connection that  the Treaty was not respected
           where an importing Member State, in  making its own VAT
           charge, failed to take account of the residual  part of the
           VAT already paid in the exporting Member State which  is
           incorporated in the value of the product at the time of its
           It also specified a method for calculating the VAT due on the
           importation by a private person of used goods which had
           already  borne VAT in the Member State of export.
           The amount of VAT chargeable in such cases should be the
           residue  of the VAT already paid in another Member State and
           of the amount  by which the goods have  depreciated, the
           value of used goods  generally being lower than their value
           when new.
           The Commission has already submitted to the Council a
           proposal for  a Directive on the double imposition of VAT on
           used goods.  This  reflects its determination to simplify
           indirect taxation for  people in the Community.  A genuine
           Internal Market must not  merely be a source of economic
           prosperity; it must also make the  daily lives of individuals
           in the Community more pleasant by  alleviating the burden of
           officialdom and by making them feel that  they really do live
           in one large business and cultural area.  For  that reason,
           the Commission is taking particular care to ensure  that
           Member States' governments implement practical measures
           allowing citizens to benefit from the more favourable
           arrangements  deriving from the application of Community law
           in the field of  indirect taxation.  In this connection, it
           recently published in  the Official Journal of the European
           Communities a communication  designed to draw public
           attention in the  Community to the  advantages they can
           expect to gain from  prohibition of the double  imposition of
           References: Judgments of the Court of Justice of 5 May 1982
           and 21  May 1985 (the Gaston Schul cases); Commission
           communication in  Official Journal No C 13 of 21 January
1986, p. 2.

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