On July 15, 2022 the European Commission published the key decisions of the July 2022 infringements package. The key decisions published include 5 reasoned opinions that were sent to Member States with respect to taxes and/or excise duties.
The Commission takes further action against Greece for failure to comply with the EU VAT rules on postal services
The Commission has today decided to send a reasoned opinion to Greece (INFR(2020)4049) for not properly applying the VAT rules on postal services included in the VAT Directive (Council Directive 2006/112/EC) and clarified by the Court of Justice of the European Union (C-357/07 of 23 April 2009 and additionally C-4/18 of 16 October 2019). This Directive provides for a VAT exemption of certain postal services to encourage specific activities in the public interest. To this end, postal services that meet the essential needs of the population (services referred to as universal postal services) are VAT exempted and thus offered at a reduced cost. By contrast, postal services for which the terms have been individually negotiated with the customers, such as bulk mail, special discounts, commercial agreements with specific organisations, and other services which are not part of the universal postal services do not qualify for the VAT exemption. Greece exempts from VAT all postal services provided by the Hellenic Post ‘ΕΛΤΑ', including those not comprised within the universal postal services. For this reason, Greece has failed to fulfil its obligations under the VAT Directive. If Greece does not provide a satisfactory response within the next two months, the Commission may refer the case to the Court of Justice of the European Union.
The Commission urges Cyprus to transpose new rules on temporary VAT exemptions on importations and on certain supplies in response to the COVID-19 pandemic
The Commission has today sent a reasoned opinion to Cyprus (INFR(2022)0039) for failing to notify the measures for the transposition into national law of Council Directive 2021/1159 laying down the temporary VAT exemptions on imports and on certain supplies in response to the COVID-19 pandemic. This Directive is providing temporary measures that aim to help with the sanitary crisis caused by the COVID-19 pandemic. Member States should have adopted and published the necessary national provisions by 31 December 2021. In January 2022, the Commission sent a letter of formal notice to eight Member States including Cyprus on the matter. To date, Cyprus notified no transposition measures to the Commission. Cyprus has now two months to respond and take the necessary measures after which the Commission may decide to refer the case to the Court of Justice of the European Union.
The Commission urges Greece, Latvia and Portugal to transpose new rules on excise duties
The Commission has today decided to send reasoned opinions to Greece (INFR(2022)0063), Latvia (INFR(2022)0128) and Portugal (INFR(2022)0160) for failing to notify the measures for the transposition into national law of Directive (EU) 2020/262 laying down the general arrangements for excise duty (recast). This Directive, which repeals and replaces Directive 2008/118/EC, sets out common provisions applicable to all products subject to excise duties. It lays down a series of new rules, which will be applicable from 13 February 2023. Member States were required to transpose this Directive by 31 December 2021. In January 2022, the Commission sent letters of formal notice to sixteen Member States including Greece, Latvia and Portugal on the matter. To date, Greece, Latvia and Portugal notified no transposition measures to the Commission. These Member States have now two months to comply with the transposition obligation and notify the Commission. Otherwise, the Commission may decide to refer the cases to the Court of Justice of the European Union.
The Commission urges Portugal to transpose new EU rules on excise duties on alcohol and alcoholic beverages
The Commission has today decided to send a reasoned opinion to Portugal (INFR(2022)0162) for failing to ensure the transposition of the new EU rules on the harmonisation of the structures of excise duties on alcohol and alcoholic beverages (Council Directive 2020/1151). The Directive sets up an EU-wide certification system for small and artisan alcohol producers, which facilitates their access to low excise duty rates across the Union. Member States were required to transpose this Directive by 31 December 2021. In January 2022, the Commission sent letters of formal notice to 11 Member States, including Portugal, after they had failed to fully transpose the Directive. To date, Portugal notified no transposition measures to the Commission. Portugal has now two months to comply with the transposition obligation and notify the Commission, after which the Commission may decide to refer the case to the Court of Justice of the European Union.
The Commission urges Greece and Spain to communicate measures implementing rules on hybrid mismatches with third countries from the Anti-Tax Avoidance Directive
The European Commission has today sent reasoned opinions to Greece (INFR(2022)0058) and Spain (INFR(2022)0070) for failing to communicate the required national measures implementing Article 9a of Council Directive (EU) 2017/952 on amending Directive (EU) 2016/1164, as regards reverse hybrid mismatches. These rules prevent taxpayers from exploiting the differences between tax systems to pay less or no tax and prevent tax base erosion for Member States. The deadline for communicating the rules was 31 December 2021. In the absence of full communication of all national implementing measures, the Commission may decide to refer the cases to the Court of Justice of the European Union.
The full July Infringements package: key decisions as published by the European Commission you can find here.
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