The European Commission published details of eight infringement procedures in the field of taxation against seven EU Member States. Each Member State involved and the area of taxation are briefly mentioned below:

Germany, Depreciation Rules Applied to Buildings

Under German law higher percentages of depreciation may be applied in the first year(s) of construction or acquisition of buildings situated in Germany than for buildings situated abroad.

The Commission considers this difference in treatment to be incompatible with the principle of free movement of capital.

Germany, Outbound Dividend Payments to Companies

Germany taxes dividends paid to foreign companies more heavily than dividends paid to domestic companies.

The Commission considers the higher taxation of outbound dividends to be contrary to the EC Treaty and the EEA Agreement, as it restricts the free movement of capital and the freedom of establishment.

Greece, Transposition of Two VAT Directives

Community law requires Member States to comply strictly with the time limits for transposing Community directives. Member States not only have to transpose directives but must also notify the Commission of the measures they have adopted by entering the laws, regulations or administrative provisions in the Commission's ad hoc database.

Greece is now facing infringement proceeding because it has failed to inform the Commission of the steps it had taken to comply with Directives 2006/69/EC and 2006/112/EC.

Spain, Exit Tax Provisions for Individuals

Under Spanish law, a taxpayer who transfers his residence abroad has to include any unallocated income (i.e. income that has still to be taxed) in his tax declaration for the last tax year in which he is still considered a resident taxpayer. He therefore will be taxed on such income immediately, contrary to those taxpayers that maintain their residence in Spain.

The European Commission has decided to refer Spain to the European Court of Justice for its tax provisions which are viewed as incompatible with the free movement of persons.

Poland, Taxable Amount of VAT on Road Vehicles

Poland has been referred to the European Court of Justice as regards the inclusion of the amount of its car registration tax within the taxable amount of VAT in the case of road vehicle supplies.

The Commission considers that the car tax should not be included in the taxable amount of VAT.

Bulgaria, Taxation of Non-resident Taxpayers

The European Commission has formally requested Bulgaria to change its tax provisions according to which certain types of Bulgarian source income are subject to a withholding tax on a gross base when paid to nonresidents whereas Bulgarian residents may deduct expenses related to the same income.

The Commission considers that these rules may lead to higher taxation for non resident taxpayers and therefore are incompatible with the freedom to provide services and the free movement of capital.

Italy, VAT on Transactions Involving Immovable Property

The European Commission has formally requested that the Italian Republic modify its legislation according to which VAT on transactions involving immovable property is determined as a percentage of the open market value if the price declared by the parties does not correspond to the market price.

Under Community rules on VAT, taxable amount, in principle, includes everything which constitutes consideration obtained by the supplier. In the absence of particular circumstances defined by the VAT Directive, the Italian tax administration cannot automatically calculate VAT for immovable property on the basis of the open market value without any evidence of tax fraud or evasion.

Austria, Tax Treatment of Donations in the Field of Science and Research

The European Commission has formally requested that Austria change its tax provisions which give more favourable tax treatment to science and research donations made to non-profit institutions established in Austria or conducting activities for the benefit of Austrian science or the Austrian economy. These rules are considered to be incompatible with the freedom to provide services and the free movement of capital.