After inspection, the French tax authorities claimed 12,814 in unpaid turnover taxes
for deposits they say are subject to VAT.
- Council Decision 98/23/EEC authorising the United Kingdom to apply a measure derogating from Article 28e(1) of Directive 77/388/EEC on the harmonisation of the laws of the member states relating to turnover taxes
There is well-established case-law on the conditions under which a national tax breaches the prohibition on levies other than those not characterised as turnover taxes
. There is reason to believe that the Court may be considering reviewing, clarifying or developing these criteria.
Article 27 of the Sixth Directive on turnover taxes
(77/388/EEC) says a member state may be authorised to introduce special measures for derogation in order to simplify the procedure for charging the tax or to prevent certain types of tax evasion or avoidance.
The entire IRAP system is currently being examined by the Court of Justice, which has been asked to give a preliminary ruling on the legality of this tax given the EU's ban on national turnover taxes
other than VAT.
The Act of Accession of the United Kingdom provides that Community acts on the harmonisation of legislation of member states concerning turnover taxes
do not apply to Gibraltar.
According to an EU directive on turnover taxes
(77/388/EEC), the operation of games of chance must, as a rule, be exempt from VAT, although member states have some scope for determining the conditions and limitations to which the exemption can be applied.
Interpretation of articles on the harmonisation of the laws of the Member States relating to turnover taxes
.Common system of value added tax: uniform basis of assessment: transactions carried out with the sole intention of obtaining a tax advantage
The EU Council of Ministers has authorised the UK to make an exemption on turnover taxes
(Sixth VAT Directive 77/388/EEC) in order to prevent the avoidance of VAT through the undervaluation of supplies in the motor vehicle trade.