The Commission's infringement package will see France and Luxembourg go before the ECJ over their application of the reduced VAT rate on digital books. Belgium is under pressure to amend its tax laws relating to residents of Wallonia and Hungary is referred to the ECJ for granting an exemption from excise duty to the production of fruit distillates.

The European Commission has decided to bring an appeal before the European Court of Justice against France and Luxembourg with regard to the application of the reduced VAT rate on digital books. According to the Commission's press release, the supply of digital books is a service provided electronically and a reduced rate may not be applied to this type of service.

The Commission has also decided to refer Belgium to the EJC over the availability of a personal income tax relief to residents of Wallonia. The Commission is of the opinion that excluding non-residents that earn their income in the Walloon Region from the income tax relief is discriminatory and restricts the free movement of workers which is provided for in EU Treaties.

Hungary will also go before the ECJ for granting an exemption from excise duty to the production of fruit distillates (pálinka). Hungary exempts pálinka from excise duty when it is produced by households or distilleries for personal use, up to a maximum of 50 litres a year. Excise duties for alcohol are harmonised under EU legislation and in the Commission's view Hungary is in contravention of EU legislation.