November proved to be another busy month for the European Commission as it commenced formal proceedings against four Member States for various infringements of EU tax law.

France has been formally requested by the Commission to remove the VAT exemption it applies to the hire of yachts used for pleasure boating as this treatment is in contravention to the VAT Directive (Article 148) according to the Commission.

Greece has been formally requested to change its registration tax rules for leased or rented vehicle as its current rules infringe upon the principle of free movement of services set down in the Treaties according to the Commission.

Hungary has been requested to amend its special retail tax and the special telecommunication tax as the Commission considers these taxes, as currently operated in Hungary, to be discriminatory, as they fall disproportionately on non-Hungarian operators.

The Commission has also requested The Netherlands to amend tax rules on cross-border pensions. In the Commission's view, the current Dutch rules constitute restrictions to the free movement of citizens and workers, to the freedom of establishment, the freedom to provide services and the free movement of capital (Articles 21, 45, 49, 56 and 63 TFEU).