The Commission has decided to bring an action before the Court of Justice concerning the VAT exemption applied by France to certain transactions involving vessels.

The Commission is of the view that French legislation and administrative practice go beyond the exemptions from VAT laid down in the VAT Directive and officially called on France to amend its legislation within a two-month time limit in March 2010. This request took the form of a ‘reasoned opinion’, which constitutes the second stage of infringement proceedings. No amendment had been made to French legislation on the matter.