Tag Archives: Administrative cooperation

Recovery of claims relating to taxes, duties and other measures

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Recovery of claims relating to taxes, duties and other measures

Outline of the Community (European Union) legislation about Recovery of claims relating to taxes, duties and other measures

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Taxation

Recovery of claims relating to taxes, duties and other measures

Document or Iniciative

Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures.

Summary

This directive applies to claims relating to:

  • all taxes and duties levied by or on behalf of any European Union (EU) country or on behalf of the EU as a whole;
  • refunds, interventions and other measures which contribute to the total or partial financing of the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD);
  • levies and other duties on the sugar sector market.

EU countries must notify the Commission of its competent national authority or authorities by 20 May 2010. The Commission will then publish a list of all competent national authorities in the Official Journal. Each competent authority must designate a central liaison office which will be responsible for contacts with other EU countries in this field.

Request for information

A competent authority is obliged to provide another competent authority with any information relevant to that applicant authority in the recovery of its claims, except if:

  • the requested authority would not be able to obtain such information for the recovery of similar claims occurring in its own country;
  • the information would disclose any commercial, industrial or professional secrets;
  • the disclosure of the information would put at risk the security or contravene the public policy of the requested EU country.

Request for notification of documents

When requested for notification of documents relating to claims, the requested authority must notify to the addressee all documents which emanate from the applicant EU country relating to a claim or to its recovery.

The request for notification must include relevant information, such as the name and address of the addressee, the purpose of the notification, a description of the nature and amount of the claim, and the contact details of the offices responsible for the documents and for obtaining further information.

Recovery procedures

Any available appropriate recovery procedures must be applied before the applicant authority makes a request for recovery, except where:

  • it is evident that there are insufficient or no assets for recovery in the applicant EU country but that the person concerned has the necessary assets in the requested EU country;
  • it would result in disproportionate difficulty.

Any request for recovery must be accompanied by a uniform instrument permitting enforcement in the requested EU country.

The requested competent authority will employ the powers and procedures provided under the laws, regulations or administrative provisions of the requested EU country regarding claims on the same or similar tax or duty. If the requested authority does not consider that the same or similar taxes or duties are applicable in the requested EU country, it shall instead apply the rules relating to tax levied on personal income.

Disputes

Disputes relating to the claim, the initial or uniform instrument permitting enforcement, and the validity of a notification by the applicant authority are the responsibility of the competent authorities of the applicant EU country. Disputes relating to the validity of a notification made by a competent authority of the requested EU country will be brought before the competent authority of that EU country.

The applicant authority may make a request for recovery of a contested claim. If the contestation is successful, the applicant authority will be responsible for the reimbursement of the amount recovered, in addition to any compensation due.

Amendment or withdrawal of the request for recovery assistance

The applicant authority must immediately notify the requested authority of any amendment to or withdrawal of its request for recovery, detailing the reasons for amendment or withdrawal.

Request for precautionary measures

Where the claim or the instrument permitting enforcement in the applicant EU country is contested at the time when the request is made, the requested authority will take precautionary measures, in accordance with its national law, to ensure recovery when requested to do so by the applicant authority.

Limits to the requested authority’s obligations

The requested authority is not obliged to grant the recovery assistance if:

  • recovery of the claim would result in serious economic or social difficulties in the requested EU country;
  • the initial request for assistance relates to claims more than 5 years old;
  • the total sum of the claims is less than EUR 1 5000.

General provisions

Any information and documents disclosed under this directive will be covered by the obligation of official secrecy and will therefore be protected under the appropriate national law of the EU country which received it.

This directive repeals Directive 2008/55/EC from 1 January 2012. References to the repealed directive will be understood as references to this directive.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Council Directive 2010/24/EU

20.4.2010

31.12.2011

OJ L84 of 31.3.2010

Action plan to combat VAT fraud in the European Union

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Action plan to combat VAT fraud in the European Union

Outline of the Community (European Union) legislation about Action plan to combat VAT fraud in the European Union

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Taxation

Action plan to combat VAT fraud in the European Union

Document or Iniciative

Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee on a coordinated strategy to improve the fight against VAT fraud in the European Union [COM(2008) 807 final – Not published in the Official Journal].

Summary

The European Commission presents a short-term plan, the aim of which is to achieve a coordinated strategy to combat tax fraud within the internal market. Three types of measure are proposed.

Scope

This Communication deals with the fight against VAT fraud and the recovery of this tax.

Preventing VAT fraud

The Commission proposes a set of measures to enhance tax systems and tax cooperation, with a view to the prevention of VAT fraud.

Firstly, the Commission proposes to introduce minimum Community standards for the registration and deregistration of traders in the VIES system in order to improve the reliability of information contained in the system.

Traders must also be able to have electronic confirmation of the name and address of business partners who are subject to VAT.

The harmonisation and simplification of invoicing rules is also planned in order to reduce the administrative burdens on business and to facilitate controls. These measures include for example common storage periods and harmonised rules concerning invoice dates.

In addition, the notion of the date of chargeability of VAT for intra-Community deliveries of goods and the provision of services should be harmonised to ensure that reporting takes place in both of the Member States concerned at the same time.

Detecting VAT fraud

In order to improve the detection of VAT fraud, the Commission intends to adopt measures to increase the effectiveness of Tax Administrations and in particular to promote better reporting between Member States in intra-Community transactions.

Rules are also proposed concerning VAT exemption on imports to better control these transactions.

The Commission is also seeking to enhance cooperation between Member States in the field of administrative cooperation. It is crucial that certain information be exchanged automatically. Many actions funded by the Fiscalis programme have already been implemented to this effect.

The establishing of a legal framework is proposed, allowing the competent authorities of one Member State to have automated access to specific data contained in the database of another Member State relating to the identification and activities of a trader.

Finally, the creation of a European network Eurofisc for early warning on the risks of VAT fraud and the analysis of these risks is proposed.

Collection and recovery of taxes

The Commission intends to propose measures to enhance the possibilities for Tax Administrations to recover VAT losses in cross border cases.

The principle of joint and several liability for tax losses should be applied to traders who do not provide the required information concerning intra-Community operations when this omission is the cause of tax losses.

The Commission also provides for the harmonisation of instruments laying down enforcement or precautionary measures with the aim of reducing administrative burdens and increasing the effectiveness of recovery.

It is also necessary to guarantee the appropriate protection of all VAT revenue in all Member States by all Member States.

Legislative proposals

The measures described above are in the form of four packages concerning:

  • the reduction of timeframes to speed up the exchange of information between Member States;
  • collection and recovery of taxes in cross border situations;
  • enhancing administrative cooperation between Member States;
  • certain aspects of the fight against fraud and invoicing.

Reflection on a longer term scale

The Commission suggests creating an ad hoc group involving tax authorities and representatives of large as well as small and medium-sized enterprises. The objective of this ad hoc group would be to examine how the use of IT tools could improve, to the mutual benefit of all parties, the relationship between taxpayers and tax authorities in terms of VAT obligations, audit, and communication in general.

Context

This short term action plan is the fruit of a long debate launched in 2006 by the Communication which dealt with the necessity of developing a coordinated strategy with a view to stepping up the fight against tax fraud. Different European institutions have looked into the question, as have Member States and representatives of the business world.

The action plan revises the VAT anti-fraud strategy.

Common rules for access to the international road haulage market

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Common rules for access to the international road haulage market

Outline of the Community (European Union) legislation about Common rules for access to the international road haulage market

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Single market for services

Common rules for access to the international road haulage market

Document or Iniciative

Regulation (EC) No 1072/2009 of the European Parliament and of the Council of 21 October 2009 on common rules for access to the international road haulage market.

Summary

This regulation applies to the international carriage of goods by road for hire or reward for journeys carried out within the European Union (EU). Where the carriage takes place between an EU country and a non-EU country, this regulation applies to the part of the journey on the territory of any EU country crossed in transit. It is not applicable to the part of the journey on the territory of the EU country of loading or unloading. This regulation also applies to the national carriage of goods by road carried out temporarily by a non-resident haulier *.

International carriage

International carriage is undertaken subject to possession of a Community licence and, if the driver is a non-EU national, in conjunction with a driver attestation.

A Community licence is issued by an EU country to any haulier carrying goods by road for hire or reward which is established in that EU country and is entitled to carry out the international carriage of goods by road in that EU country. The competent authorities of the EU country of establishment issue the Community licence for renewable periods of up to ten years. The licence is issued in the name of the haulier and is non-transferable.

A driver attestation is issued by the competent authorities of the EU country of establishment of the haulier to any haulier who holds a Community licence and who lawfully employs or uses a driver in that EU country who is neither an EU national nor a long-term resident. The driver attestation is valid for a period of up to a maximum of five years.

If the conditions above are not fulfilled, the competent authorities of the EU country of establishment will, by means of a reasoned decision, reject an application for the issue or renewal of a Community licence or the issue of a driver attestation. A Community licence or driver attestation will be withdrawn where the holder either no longer satisfies the conditions above or has supplied incorrect information relating to a licence or attestation application.

Cabotage

Any haulier for hire or reward who is a Community licence holder and whose driver, if a non-EU national, holds a driver attestation, is entitled to carry out cabotage operations *. After the goods concerned in an international carriage have been delivered, the hauliers have seven days in which they may undertake up to three cabotage operations. These three cabotage operations may also be carried out in transited EU countries, with a limit of one operation per country.

National road haulage services undertaken in the host EU country* by a non-resident haulier will only be subject to this regulation if the haulier can produce proof of the incoming international carriage and of each consecutive cabotage operation undertaken.

Cabotage operations are subject to national legislation in the host EU country regarding the:

  • conditions governing the transport contract;
  • weights and dimensions of road vehicles;
  • requirements concerning the carriage of certain categories of goods, in particular dangerous goods, perishable food items and live animals;
  • driving time and rest periods;
  • value added tax (VAT) on transport services.

To prevent discrimination on grounds of nationality or place of establishment, the above laws and regulations are applied equally to non-resident hauliers as they are to hauliers established in the host EU country.

Safeguard measures may be adopted by the Commission in the event of serious disturbance of national transport markets in a given geographical area either due to or aggravated by cabotage.

Sanctioning of infringements

If a haulier seriously infringes EU road transport legislation, the competent authorities of the EU country of establishment of the haulier will take the appropriate action which could constitute a warning, or may involve administrative penalties such as a withdrawal of the Community licence. If a non-resident haulier seriously infringes EU road transport legislation, the EU country in which the infringement is ascertained will inform the competent authorities of the haulier’s EU country of establishment of their final decision on the matter, including a description of the infringement, the category, type and seriousness of the infringement, and the penalties imposed. All serious infringements must be recorded in the national electronic register of road transport undertakings.

This regulation repeals Regulations Nos 881/92, 3118/93 and 2006/94.

Key terms used in the act
  • Non-resident haulier: a road haulage undertaking which operates in a host EU country.
  • Cabotage operations: national carriage for hire or reward carried out on a temporary basis in a host EU country, in conformity with this regulation.
  • Host EU country: an EU country in which a haulier operates other than the haulier’s EU country of establishment.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation No 1072/2009

4.12.2009

–

OJ L 300 of 14.11.2009

Administrative cooperation in the field of value added tax

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Administrative cooperation in the field of value added tax

Outline of the Community (European Union) legislation about Administrative cooperation in the field of value added tax

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Taxation

Administrative cooperation in the field of value added tax (until 31.12.2011)

Document or Iniciative

Council Regulation (EC) No 1798/2003 of 7 October 2003 on administrative cooperation in the field of value added tax and repealing Regulation (EEC) No 218/92 [See amending act(s)].

Summary

This regulation determines the conditions of cooperation between national authorities responsible for applying value added tax (VAT) legislation on:

  • supplies of goods and services;
  • intra-Community acquisition of goods;
  • importation of goods.

It also provides a structure for cooperation between these national authorities and the Commission.

More precisely, the regulation lays down rules and procedures to enable the competent authorities of European Union (EU) countries to cooperate and to exchange any information that may help them assess VAT correctly.

Definition of parties concerned and procedures

Each EU country designates a single central office to act as a point of contact for administrative cooperation. The competent authorities of EU countries may designate liaison departments and/or competent officials for direct exchanges of information. The central liaison offices are responsible for maintaining up-to-date lists of these departments or officials and making them available to the other EU countries concerned.

Liaison departments and competent officials are required to inform their central liaison office when they send or receive a request for assistance or a reply to a request for assistance. They must also notify their central liaison office and competent authority of any request for assistance received that requires action outside their territorial or operational area.

The obligation for EU countries to assist each other does not cover the provision of information or documents obtained by the authorities when acting with the authorisation or at the request of a judicial authority, unless provided for in their national law.

Exchange of information on request

This concerns requests for information and for administrative enquiries sent by the competent authority of one EU country (the requesting authority) to the competent authority of another EU country (the requested authority) to obtain information that may help with the correct assessment of VAT. The requested authority has the obligation to provide the information requested. To that end, it may make administrative enquiries and act for the requesting authority as if it were acting on its own behalf.

The requesting authority may make a reasoned request for an administrative enquiry. In such cases, the requested authority must justify any failure to carry out the enquiry.

The requesting authorities must use a standard form for all requests for information and administrative enquiries.

As regards the time limit for providing information, the requested authority must provide the information without delay and no later than three months following the date of receipt of the request. However, if the requested authority is already in possession of the information, the time limit is reduced to a maximum of one month. In certain cases, the requesting and requested authorities may agree on different time limits.

If the requested authority is unable to respond to the request by the deadline, it must immediately inform the requesting authority in writing of the reasons for its failure to do so and indicate a timeframe within which it will be able to respond.

The requesting and requested authorities may agree to allow officials of the first to be present in the administrative offices of the latter. The officials of the requesting authority may also participate in the administrative enquiries with a view to exchanging information, but never to exercise the powers of inspection conferred on the officials of the requested authority. They must at all times be in possession of a written authority, which states their identity and official capacity.

EU countries may also agree to conduct simultaneous controls in their respective territories on the tax situation of taxable persons, if this is more effective than controls carried out by only one EU country.

Exchange of information without prior request

The competent authority of an EU country must forward information by automatic or structured automatic exchange to the competent authority of the EU country concerned when:

  • tax is meant to be charged in the EU country of destination and the effectiveness of the control system depends on information from the EU country of origin;
  • an EU country believes that a breach of VAT legislation has or might have been committed in the other EU country;
  • there is a risk of tax loss in the other EU country.

The exact categories of information to exchange, the frequency of exchanges and the practical procedures for exchanging information are determined by the Commission, assisted by a standing committee on administrative cooperation. In addition, each EU country must determine whether it will take part in the exchange of a particular category of information and whether it will do so in an automatic or structured automatic way.

The competent authorities of EU countries may forward to each other any information of which they are aware by spontaneous exchange.

Storage and exchange of information relating to intra-Community transactions

Each EU country must maintain an electronic database in which it stores and processes information relating to VAT. It is the responsibility of each EU country to ensure that its database is complete, accurate and kept up to date.

The competent authority of an EU country can obtain directly from any other EU country, or have direct access to, data stored on:

  • VAT identification numbers issued by the EU country receiving the information;
  • the total value of all intra-Community supplies of goods and services to persons holding a VAT identification number by all operators identified for the purposes of VAT in the EU country providing the information.

If necessary for the control of intra-Community acquisition of goods and supply of services to prevent a breach of VAT legislation, the competent authority of an EU country must receive directly, or have direct electronic access to, the following information:

  • the VAT identification numbers of the persons who effected the intra-Community supplies of goods and services;
  • the total value of such supplies to persons holding a VAT identification number.

EU countries must provide access to the information without delay and no later than one month from the end of the period to which the information relates.

Conditions governing the exchange of information

The requested authority may refuse a request for assistance. In such cases, it must always inform the requesting authority of its reasons. Requests for assistance may be refused if the provision of information:

  • imposes a disproportionate administrative burden;
  • is contrary to the laws or administrative practices of the requested EU country;
  • leads to the disclosure of commercial, industrial or professional secrets;
  • is against public policy.

Information communicated on the basis of this regulation is covered by the obligation of official secrecy and is protected under the national law of the EU country that received it. Therefore, this information may only be used for clearly specified purposes, such as:

  • establishing the assessment base;
  • collection or administrative control of tax (for the purpose of establishing the assessment base);
  • assessment of other levies, duties and taxes covered by Article 2 of Council Directive 76/308/EEC; and
  • in connection with judicial proceedings that may involve penalties, initiated as a result of infringements of tax law (the documents may be invoked as evidence).

Context

This regulation belongs to a series of tax harmonisation measures taken to complete the internal market.

In the interests of facilitating contacts between local and/or national tax authorities to combat fraud more effectively, this regulation brings together into a single legal instrument and reinforces the provisions of the Directive on mutual assistance by competent authorities in the field of direct and indirect taxation and the Regulation on administrative cooperation in the field of indirect taxation.

On 7 October 2010, the Council adopted Regulation (EU) No 904/2010 which repeals the current Regulation on 1 January 2012. However, chapter V (with the exception of Article 27, paragraph 4) remains applicable until 31 December 2012. Certain provisions from the new Regulation entered into force on 1 November 2010, others will apply from 1 January 2012 and 1 January 2015.

REFERENCES

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 1798/2003

1.1.2004

–

OJ L 264 of 15.10.2003
Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 885/2004

1.5.2004

–

OJ L 168 of 1.5.2004

Regulation (EC) No 1791/2006

1.1.2007

–

OJ L 363 of 20.12.2006

Regulation (EC) No 143/2008

20.2.2008

–

OJ L 44 of 20.2.2008

Regulation (EC) No 37/2009

1.1.2010

–

OJ L 14 of 20.1.2009

Regulation (EU) No 904/2010

1.11.2010

–

OJ L 268 of 12.10.2010

RELATED ACTS

Commission Regulation (EC) No 1174/2009 of 30 November 2009 laying down rules for the implementation of Articles 34a and 37 of Council Regulation (EC) No 1798/2003 as regards refunds of value added tax under Council Directive 2008/9/EC [Official Journal L 314 of 1.12.2009].

Report from the Commission to the Council and the European Parliament of 18 August 2009 on the application of Council Regulation (EC) No 1798/2003 concerning administrative cooperation in the field of value added tax [COM(2009) 428 final – Not published in the Official Journal].

Commission Regulation (EC) No 1925/2004 of 29 October 2004 laying down detailed rules for implementing certain provisions of Council Regulation (EC) No 1798/2003 concerning administrative cooperation in the field of value-added tax [Official Journal L 331 of 5.11.2004].
This regulation establishes the categories of information to be exchanged without prior request, the frequency with which such exchanges must take place and other rules for implementing certain provisions of Regulation (EC) No 1798/2003.

Anti-tax fraud measures

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Anti-tax fraud measures

Outline of the Community (European Union) legislation about Anti-tax fraud measures

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Fight against fraud > Protecting the European Union’s financial interests

Anti-tax fraud measures

Document or Iniciative

Commission Communication, dated 31 May 2006, to the Council, the European Parliament and the European Economic and Social Committee concerning the need to develop a coordinated strategy to improve the fight against fiscal fraud [COM(2006) 254 – Not published in the Official Journal].

Summary

This communication seeks to trigger a debate based on lines of reflection regarding the factors to be taken into account in the context of developing a coordinated strategy at European level to improve the fight against fiscal fraud.

Administrative cooperation between Member States

With a view to improving administrative cooperation between Member States, the Commission proposes to:

  • strengthen not merely the legislation but also the practical measures employed regarding cooperation in the field of direct and indirect taxation and assistance in the recovery of taxes;
  • improve risk management so as to enable Member States to focus their inspection efforts on the sectors and companies considered to represent a major fraud risk;
  • create a permanent Forum for administrative cooperation at Community level for all direct and indirect taxes.

Cooperation with third countries

Given that tax fraud does not stop at the external borders of the European Union (EU), the Commission is proposing the adoption of a Community approach to cooperation with third countries.

Modifications to existing VAT and excise systems

With a view to reducing the cases of fraud, the Commission is launching a debate on possible modifications that could be made to the existing common VAT and excise systems.

Among the potential avenues to be explored in the VAT sector are the possibility not only of strengthening the principle of joint and several liability for the payment of VAT but also of extending the use of the reverse charge mechanism. In all the cases cited, the Communication lays down the conditions to be met by the new VAT system.

In the excise sector, thought is being given to the current tobacco taxation structure.

Other avenues to be explored

The Commission is also proposing that the discussions should include a range of more specific measures such as:

  • increasing tax declaration obligations for companies considered to represent a risk;
  • reducing these obligations for companies which obtain an authorisation by entering into a partnership with the tax authorities;
  • using standardised, high-performance IT tools for the rapid exchange of information.

BACKGROUND

In 2004, tax revenues (total tax take plus compulsory social security contributions) represented 39.3% of GDP (gross domestic product) in the EU. Tax fraud accounts for approximately 2 to 2.5% of GDP, i.e. between 200 billion and 250 billion. Tax fraud constitutes an obstacle to the smooth operation of the internal market inasmuch as it leads to significant distortion of competition among taxpayers.

Related Acts

Commission Communication, dated 25 October 2005, to the Council and the European Parliament – The Contribution of Taxation and Customs Policies to the Lisbon Strategy [COM(2005) 532 final – Not published in the Official Journal].

This Communication launches a plan for EU-wide taxation and customs measures that would help the EU to achieve its Lisbon objectives. The Commission is in favour of a more concerted and coordinated approach at Community level so as to enable the Member States to combat tax fraud more efficiently.

Commission Communication, dated 27 September 2004, to the Council and the European Parliament on preventing and combating corporate and financial malpractice [COM (2004) 611 final – Not published in the Official Journal].

This Communication seeks to provide a global method for reducing the risk of corporate and financial malpractice, combining in equal measure the fiscal, judicial and law enforcement dimensions.

Proposal for a Regulation of the European Parliament and of the Council of 20 July 2004 on mutual administrative assistance for the protection of the financial interests of the Community against fraud and any other illegal activities [COM(2004) 509 final – Not published in the Official Journal] [COD/2004/0172 procedure].

Amended by:

Amended Proposal for a Regulation of the European Parliament and the Council on mutual administrative assistance for the protection of the financial interests of the European Community against fraud and any other illegal activities [COM(2006) 473 final – Not published in the Official Journal] [COD/2004/0172].

Regulation (EC) No 1798/2003 of 7 October 2003 on administrative cooperation in the field of value added tax and repealing Regulation (EEC) No 218/92 [Official Journal L 264, 15.10.2003].

This Regulation establishes a common system of administrative cooperation and exchange of information between the competent authorities of the Member States to ensure proper application of VAT and to combat fraud.

Decision No 1152/2003/EC of the European Parliament and of the Council of 16 June 2003 on computerising the movement and surveillance of excisable products [Official Journal L 162, 1.7.2003, p. 5].

Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments [Official Journal L 157, 26.6.2003].

The ultimate aim of this Directive is to enable savings interest received in one Member State by natural persons who are resident for tax purposes in another Member State to be made subject to effective taxation in accordance with the laws of the latter Member State.

Council Directive 77/799/EEC of 19 December 1977 concerning mutual assistance by the competent authorities of the Member States in the field of direct taxation and taxation of insurance premiums [Official Journal L 336, 27.12.1977].

With a view to combating international tax evasion and avoidance, this Directive strengthens collaboration between the Member States’ tax administrations, while at the same time facilitating the exchange of information that appears relevant for the correct assessment of taxes on income and on capital.

 

Narcotic drugs and psychotropic substances: internal aspects

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Narcotic drugs and psychotropic substances: internal aspects

Outline of the Community (European Union) legislation about Narcotic drugs and psychotropic substances: internal aspects

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Other

Narcotic drugs and psychotropic substances: internal aspects

1) Objective

To prevent the manufacture of narcotic drugs and psychotropic substances legitimately marketed in the Community from being diverted for illicit purposes.

2) Document or Iniciative

Council Directive 92/109/EEC of 14 December 1992 on the manufacture and the placing on the market of certain substances used in the illicit manufacture of narcotic drugs and psychotropic substances [Official Journal L 370, 19.12.1992].

3) Summary

The Directive distinguishes two types of precursor: those with limited use for licit purposes, and those of essential importance for legitimate commercial use.

The Directive defines “scheduled substance”, “placing on the market”, “operator”, “UN Convention” and “International Narcotics Control Board”.

The Directive lays down requirements in respect of documentation, records and labelling. It guarantees the competent authorities access to documents and records for verification purposes.

Member States must designate a competent authority in order to ensure proper application of the Directive. The Directive also requires intra-Community cooperation between the competent authorities.

Member States are to take all appropriate measures to encourage operators to notify the competent authorities of all unusual orders or transactions relating to scheduled substances which show that the substances which are to be placed on the market or manufactured are likely to be used in the illicit manufacture of narcotic drugs or psychotropic substances. Likewise, the Member States shall encourage all persons who suspect, from information obtained by reason of their professional duties, that scheduled substances which have been, or are about to be, placed on the market or manufactured are likely to be used for the illicit manufacture of narcotic drugs or psychotropic substances, to inform the competent authorities thereof.

With regard to the control measures, the Directive confers on the competent authorities powers of inspection, search and seizure. The competent authorities may prohibit the placing on the market or manufacture of scheduled substances if they believe that these substances are ultimately destined for the illegal manufacture of narcotic drugs or psychotropic substances.

An annual report drawn up by the Commission will be submitted to the International Narcotics Control Board. The report will provide information on the amounts of scheduled substances seized, the methods of diversion and illicit manufacture, any substances identified as having being used in illicit manufacture of narcotic drugs or psychotropic substances, and the nature and origin of processing equipment seized.

Act Date
of entry into force		 Final date for implementation in the Member States
Directive 92/109/EEC 01.07.1993 01.07.1993

4) Implementing Measures

Regulation (EC) No 1485/96 [Official Journal L 188 of 27.7.1996]
Commission Regulation of 26 July 1996 setting out the conditions for implementing Council Directive 92/109/EEC with regard to customer declarations which specify the uses of certain substances used in the illicit manufacture of narcotic drugs and psychotropic substances.
According to this Regulation, a customer who purchases a classified substance falling within categories 1 or 2 in Annex I to Directive 92/109/EEC must complete a declaration on his supplier’s premises that specifies the use(s) of that substance. The Regulation also provides that a specific declaration shall be drawn up which covers multiple transactions in the substances falling within category 2.

This Regulation was amended by:

Commission Regulation No 1533/2000 of 13 July 2000 [Official Journal L 175 of 14.07.2000]

This Regulation amends the model declarations of use in respect of individual and multiple transactions, and establishes a uniform model for all operators so as to facilitate the monitoring of these declarations by the Member State authorities.

Recommendation [Official Journal C 114 of 15.05.2002]

Council Recommendation of 25 April 2002 on the need to enhance cooperation and exchanges of information between the various operational units specialising in combating trafficking in precursors in the Member States of the European Union.

Full text of the recommendation

Amendments to the Annexes to the Directive:

Directive 2003/101/EC [Official Journal L 286 of 04.11.2003]

This Directive replaces Annexes I and II of the basic directive on 1 January 2004.

5) Follow-Up Work

On 23 January 1998, the Commission presented a proposal for a European Parliament and Council Directive amending Council Directive 92/109/EEC on the manufacture and the placing on the market of certain substances used in the illicit manufacture of narcotic drugs and psychotropic substances [COM(98) 22 final – Official Journal C 108 of 07.04.1998].

Co-decision procedure (COD/1998/17)

First reading: on 20 November 1998, the European Parliament approved the Commission proposal subject to certain amendments. The Commission accepted most of these amendments.

The Commission presented an amended proposal on 28 April 1999. [COM(99) 202 final – Official Journal C 162 of 09.06.1999]

This proposal was withdrawn by the Commission and replaced by:

Proposal for a European Parliament and Council regulation on drug precursors [COM(2002) 494 final – Official Journal C 20 E of 28.01.2003].

This proposal aims to transform Directive 92/109/EEC into a Regulation, in order to simplify the legislation and make it more user-friendly both for economic operators and for the competent authorities in the Member States. The purpose of the new Regulation is to establish harmonised measures for controlling and monitoring certain chemical substances frequently used in the manufacture of illicit narcotic drugs. It contains rules on licensing, customer declarations and labelling. A monitoring procedure will prevent barriers to the free trade of these substances arising between Member States.

Co-decision procedure (COD/2002/0217)

On 26 February 2003, the Economic and Social Committee gave its opinion. [Official Journal C 95 of 23.04.2003]

On 11 March 2003, the European Parliament approved the Commission proposal subject to certain amendments. The Commission accepted some of these amendments.

On 19 May 2003, the Council reached a political agreement on its common position.

On 27 May 2003, la Commission adopted an amended proposal [COM(2003) 304 final – not yet published in the Official Journal].

On 29 September 2003, the Council adopted the common position [Official Journal L 277 E of 18.11.2003].

On 7 October 2003, the Commission stated its agreement with the Council’s common position.

The common position is currently before Parliament for its second reading.

The new supporting competences of the EU

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The new supporting competences of the EU

Outline of the Community (European Union) legislation about The new supporting competences of the EU

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Institutional affairs > Building europe through the treaties > The Lisbon Treaty: a comprehensive guide

The new supporting competences of the EU

The Treaty of Lisbon creates four new areas of competence in which the European Union (EU) may intervene: civil protection, administrative cooperation, tourism and sport.

The EU’s new competences in these areas are supporting competences. The EU does not acquire any additional legislative powers insofar as it can act only to support the actions of Member States, without being able to harmonise national law.

Moreover, the EU already intervened in these areas by means of cross-cutting policies. From now on, the Treaty of Lisbon clarifies the EU’s objectives and action by creating specific legal bases for these four areas.

CIVIL PROTECTION

The Treaty of Lisbon endeavours to improve the EU’s ability to deal with natural or man-made disasters. Article 196 of the Treaty on the Functioning of the EU enables the EU to adopt measures relating to:

  • risk prevention;
  • preparing civil-protection personnel;
  • responding to natural or man-made disasters;
  • international cooperation between national civil-protection services;
  • consistency in international civil-protection work.

Moreover, these provisions on civil protection are to be linked with the solidarity clause in Article 222 of the Treaty on the Functioning of the EU. This clause enables the EU to assist a Member State which has been the victim of a terrorist attack or a natural or man-made disaster.

ADMINISTRATIVE COOPERATION

Administrative cooperation between Member States becomes a competence of the EU (Article 197 of the Treaty on the Functioning of the EU). The aim is to guarantee the effective implementation of European law, particularly by improving the effectiveness of Member States’ administrations. The EU can therefore adopt new measures aimed at facilitating the exchange of good practice between Member States and the introduction of training programmes.

However, the Treaty on the Functioning of the EU places two restrictions on the exercise of this new power:

  • a Member State may not, under any circumstances, be obliged to avail itself of the support of the Union;
  • the Union may not adopt measures relating to the harmonisation of the laws and regulations of the Member States.

TOURISM

Tourism was already present in several European policies, such as regional policy and employment policy. From now on, the Treaty creates a specific legal basis in order to enable the EU to intervene in this area (Article 195 of the Treaty on the Functioning of the EU).

EU action can therefore have two objectives:

  • creating a favorable environment for the development of undertakings in the tourism sector;
  • promoting cooperation between the Member States, particularly through the exchange of good practice.

SPORT

The Treaty of Lisbon confirms the EU’s competence in the area of sport. However, it does not create a specific article but incorporates a legal basis relating to sport into the section of the Treaties devoted to education, vocational training and young people.

Article 165 of the Treaty on the Functioning of the EU states that the EU’s objective is to promote European sporting issues. Specifically, the EU will be able for example to support Member States’ actions aimed at protecting the physical and moral integrity of sportsmen and sportswomen or actions aimed at combating doping in sport.

The EU will also be able to develop cooperation with international bodies in the area of sport.

Coordination of social security systems

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Coordination of social security systems

Outline of the Community (European Union) legislation about Coordination of social security systems

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social protection

Coordination of social security systems

Document or Iniciative

Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems [See amending act(s)].

Summary

The social security systems of the countries of the European Union (EU) are coordinated. However, social benefits and the conditions under which they are granted are determined at national level, depending on the traditions and culture of each country.

European law lays down rules and principles to guarantee the right of free movement of persons in the EU.

Persons concerned

This Regulation applies to all nationals of an EU country who are or who have been covered by the social security legislation of one of those countries, as well as to the members of their family and their survivors.

It also applies to third country nationals living legally in the EU and whose situation connects them to several Member States. The Regulation also applies to members of their families and their survivors.

According to the principle of equal treatment, nationals of an EU country and persons residing in that country without being nationals of it are equal in terms of the rights and obligations provided for by the national legislation.

The provisions of this Regulation apply to all the traditional branches of social security:

  • sickness,
  • maternity,
  • accidents at work,
  • occupational diseases,
  • invalidity benefits,
  • unemployment benefits,
  • family benefits,
  • retirement and pre-retirement benefits,
  • death grants.

The Regulation also recognizes the principle of the aggregation of periods, pursuant to which periods of insurance, employment or residence in an EU country are taken into account in all the other EU countries. This means that the acquisition of the right to benefits in one State must take account of periods of insurance, employment, self-employment or residence in another EU Member State.

Determination of the applicable legislation

The insured person is subject to the legislation of a single Member State only. The Member State concerned is the one in which he or she pursues a gainful activity.

Particular rules are provided for certain categories of workers, such as civil servants who are subject to the legislation of the Member State to which the administration employing them is subject, and workers who are employed or self-employed in several EU countries.

Benefits in kind (sickness, maternity and paternity)

Frontier workers are affiliated to the body of the country in which they work, while residing in another EU country and having access to health care in both States. Special provisions are provided concerning benefits in kind intended for members of their family.

Persons staying in an EU country other than their country of residence, in particular during holidays, must be able to receive necessary medical benefits during their stay. It is the legislation of the State in which they are staying which determines the financial conditions for the award of the benefits, but the costs are borne/reimbursed by the social security body of the country of origin. This right is certified by the European Health Insurance card, which every insured person may request from his/her social security body.

Members of the retired worker’s family are entitled to certain benefits in kind, even if they reside in a Member State other than that of the holder of the pension.

Retired frontier workers

This category of insured person can receive benefits in the last State in which they worked if it concerns the continuation of medical treatment which began in that State.

They, as well as their families, can continue to receive medical treatment in the last Member State in which they worked:

  • without restriction if they have pursued a frontier activity for two years during the five years preceding the retirement or invalidity;
  • provided the Member States concerned have opted for this.

Benefits for accidents at work and occupational diseases

Persons staying or residing in a Member State other than that in which they are affiliated to social security nevertheless benefit from the scheme covering accidents at work and occupational diseases. These benefits are provided by the institution of the place of stay or residence in accordance with the legislation which is applicable there.

The institution of the State in which the worker is affiliated bears the costs of transporting him/her to his/her place of residence. The institution must have previously reached agreement on this form of transport, except in the case of frontier workers.

Death grants

When an insured person or member of his/her family dies in a Member State other than the competent Member State, death is deemed to have occurred in the competent Member State. Hence the competent institution must provide the death grants payable under the legislation it applies even if the person entitled resides in another Member State.

Invalidity benefits

As regards invalidity benefits, Member States may decide to determine the amount of the benefits on the basis of the duration of periods of insurance or residence (see Annex VI to the Regulation).

Old-age pensions

All Member States in which a person has been insured must pay an old-age pension when the insured person reaches the age of retirement. The calculation of the amount of the benefits takes into consideration all the periods completed in another Member State.

The Regulation also contains rules concerning the way in which the competent institutions calculate benefits and establishes rules to prevent overlapping.

If a worker is entitled to benefits in several EU countries, the total amount of the benefits must not be less than the minimum provided for in the legislation of his/her Member State of residence, if the State of residence has a minimum pension scheme. Otherwise, the institution of the Member State of residence must pay compensation.

Unemployment benefits

As regards unemployment benefits, the competent institution of a Member State must take into account the periods of insurance, employment or self-employment completed under the legislation of any other Member State as though they were completed under the legislation it applies.

An unemployed person may move to another Member State in order to seek work while retaining entitlement to benefits for three months. The competent services or institutions may extend this period up to a maximum of six months. If the unemployed person does not return on or before the expiry of this period he/she loses all entitlement to benefits.

Preretirement

Beneficiaries of statutory pre-retirement schemes may receive their benefits and be covered for their health care and family benefits in another European country. Based on the principle of equal treatment, they must have the same rights and obligations as other citizens of the country.

Since statutory pre-retirement schemes exist only in a very small number of Member States, this Regulation excludes the rule concerning the aggregation of periods for the acquisition of entitlement to pre-retirement benefits.

Family benefits

A person is entitled to family benefits in a competent Member State, including for members of his/her family residing in another Member State, as if they were residing in the former Member State.

In the case of overlapping benefits, family benefits are provided in line with the priority rules set out.

Special non-contributory cash benefits

Contrary to the general rule, these benefits are not exportable if they are listed in Annex X and if they fulfil certain criteria. Besides, these criteria apply to all Member States, with the result that similar benefits will be treated in the same way.

Coordination instruments in social security systems

This Regulation reinforces the principle of good administration. The institutions must respond to all queries within a reasonable period of time and must in this connection provide the persons concerned with any information required for exercising the rights conferred on them by this Regulation. Besides, in the event of difficulties in the interpretation or application of this Regulation, the institutions involved must contact one another in order to find a solution for the person concerned.

The Regulation provides for mechanisms designed to guarantee smooth functioning and enhanced cooperation between Member States and institutions in the field of social security, notably:

  • an Administrative Commission, responsible for handling any question of interpretation arising from the provisions of this Regulation or any accord or agreement concluded in the framework of the Regulation;
  • a Technical Commission within the Administrative Commission, responsible for assembling technical documents, studies and the associated activities;
  • an Audit Board which will establish the average costs for reimbursement of healthcare costs in Member States;
  • an Advisory Committee, responsible for preparing opinions and proposals for the Administrative Commission.

Context

Coordination of social security systems got under way in 1971 with the adoption of Council Regulation (EEC) No 1408/71. This Regulation guaranteed equal treatment and social security benefits to all workers who are Member State nationals, regardless of their place of employment or residence.

References

Act Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EC) No 883/2004

20.5.2004

–

OJ L 314 of 7.6.2004
Amending Act(s) Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EC) No 988/2009

30.10.2009

–

OJ L 284 of 30.10.2009

Regulation (EC) No 1231/2010

1.1.2010

–

OJ L 344 of 29.12.2010

Regulation (EU) No. 465/2012

28.6.2012

–

OJ L 149 of 8.6.2012

Successive amendments and corrections to Regulation (EC) No 883/2004 have been incorporated in the basic text. This consolidated versionis for reference purpose only.

Related Acts

Regulation (EC) No 987/2009 of the European Parliament and of the Council of 16 September 2009 laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems (Text with relevance for the EEA and for Switzerland) [Official Journal L 284 of 30.10.2009]
This Proposal details the implementation procedures which should ensure that benefits are granted quickly and efficiently, despite the wide range of national social security systems.

Development of statistics on education and lifelong learning

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Development of statistics on education and lifelong learning

Outline of the Community (European Union) legislation about Development of statistics on education and lifelong learning

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Education training youth sport > Lifelong learning

Development of statistics on education and lifelong learning

Document or Iniciative

Regulation (EC) No 452/2008 of the European Parliament and of the Council of 23 April 2008 concerning the production and development of statistics on education and lifelong learning.

Summary

In order to develop education and lifelong learning strategies, and to monitor the implementation of these strategies, the production of comparable statistical data is of utmost importance. It is also essential that the statistical data production is based on a framework of consistent concepts. Consequently, this calls for the establishment of an integrated statistical information system on education, training and lifelong learning at the European Union (EU) level.

DOMAINS

This regulation applies to the production of EU level statistics on education and lifelong learning, covering the following domains:

Education and training systems

Comparable data is sought especially on the participation in and completion of educational programmes and on costs and resources used for education and training. The data covers domestic educational activities and includes all student types and age groups. It also allows for the calculation of indicators on education and training systems. EU countries must supply data falling under this domain annually.

Adult participation in lifelong learning

The comparable data collected on the participation and non-participation of adults in lifelong learning concerns individuals in the 25-64 age group. The supplementary collection of data on participation in social and cultural activities is on a voluntary basis only. Data for this domain must be supplied every five years, beginning in 2010 at the earliest.

Other statistics on education and lifelong learning

This concerns comparable data that support specific EU policies not covered by the above two domains, such as statistics on human capital or on the social and economic benefits of education. This data is obtained from existing EU level sources.

STATISTICAL ACTIONS

Individual statistical actions are used to implement the production of EU level statistics. These include the following:

  • for the first two domains, regular and timely delivery of statistics by EU countries;
  • within the scope of the third domain, provision of supplementary variables and indicators through other statistical information systems and surveys;
  • developing, improving and updating standards and manuals that define frameworks, concepts and methods;
  • within the context of the quality framework, improving data quality.

The Commission will take into consideration the existing capacities of EU countries with regard to the above actions. For the collected data, consideration will be given to the regional and gender aspects whenever possible.

The Commission (Eurostat) will also strive to collaborate, where appropriate, with the United Nations Educational, Scientific and Cultural Organisation (Unesco) Institute for Statistics (UIS), the Organisation for Economic Cooperation and Development (OECD) and other international organisations to guarantee the comparability and avoid the duplication of data at an international level.

When new data requirements arise, or when the quality of the data is insufficient, the Commission will first launch voluntary pilot studies to be implemented by EU countries before the actual data collection.

IMPLEMENTING MEASURES

In order to supplement the regulation, certain additional implementing measures are used to amend its non-essential elements. These include measures that provide for economic and technical developments in data collection, transmission and processing. If, on the basis of these measures, the need for supplementary data collection arises, any decisions will be taken only after a cost-benefit analysis is effectuated.

For EU countries, limited derogations and transition periods may be granted if need be, provided that these are based on objective reasons.

The Statistical Programme Committee assists the Commission in its work with regard to the production and development of statistics on education and lifelong learning.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 452/2008

24.6.2008

–

OJ L 145 of 4.6.2008

Related Acts

Commission Regulation (EU) No 88/2011 of 2 February 2011 implementing Regulation (EC) No 452/2008 of the European Parliament and of the Council concerning production and development of statistics on education and lifelong learning, as regards statistics on education and training systems [Official Journal L 29 of 3.2.2011].

Commission Decision 2010/786/EU of 17 December 2010 granting derogations for implementing Regulation (EC) No 452/2008 of the European Parliament and of the Council concerning the production and development of statistics on education and lifelong learning with regard to Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Hungary, Malta, Poland, Portugal, Finland and the United Kingdom [Official Journal L 335 of 18.12.2010].

Commission Regulation (EU) No 823/2010 of 17 September 2010 implementing Regulation (EC) No 452/2008 of the European Parliament and of the Council concerning the production and development of statistics on education and lifelong learning, as regards statistics on the participation of adults in lifelong learning [Official Journal L 246 of 18.9.2010].
This regulation establishes the implementing measures for individual statistical actions to produce statistics on adult participation in lifelong learning.
The first Adult Education Survey covers the participation of adults in education and training during the period 1 July 2010 – 30 June 2011 and any related aspects, such as difficulties encountered. The data is collected during the period 1 July 2011 – 30 June 2012 and then every five years. The survey covers the 25-64 age group, though the 18-24 and 65-69 age groups may also be covered.
In close collaboration with EU countries, the Commission produces an “Adult Education Survey Manual” to ensure a high level of harmonisation between their survey results.
The regulation establishes minimum requirements in order to ensure that the data to be transmitted is of high quality. Its annexes specify the variables concerning the survey subjects and the sample and precision requirements. EU countries must submit quality reports on the survey to the Commission, to which end quality requirements are also set out in the annex to the regulation.

The Internal Market Information System

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The Internal Market Information System

Outline of the Community (European Union) legislation about The Internal Market Information System

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Internal market: general framework

The Internal Market Information System (IMI)

Document or Iniciative

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 6 November 2008 “Delivering the benefits of the single market through enhanced administrative cooperation” [COM(2008) 703 final – Not published in the Official Journal].

Summary

The internal market information system (IMI) is an electronic tool designed to support administrative cooperation in the field of legislation relating to the internal market. The IMI helps competent authorities in Member States to overcome practical difficulties related in particular to differences in administrative culture, the use of different languages and the identification of partners in other Member States.

The IMI is a secure internet application, available to all administrations in the thirty countries of the European Economic Area (EEA). It is available in all European Union languages.

Principles

The IMI is based on three key principles:

  • it does not impose additional obligations on Member States in terms of administrative cooperation;
  • it is flexible enough to adapt to the diverse administrative structures and cultures in Europe;
  • it is a single system, designed to be able to integrate many pieces of Internal Market legislation which avoids a proliferation of information systems.

Benefits

The system offers many benefits. In particular Member States are able to manage a single relationship with the network instead of 29 separate bilateral relationships, communicate using a clear working method by joint agreement, reduce language problems, save resources and time, and improve service quality through increased transparency and predictability.

Data protection

As IMI is used for the exchange of personal data, relevant legislation fully applies to the system in terms of data protection. Moreover, Commission Decision 2008/49/EC lays down the functions, rights and obligations of IMI users.

Context

The creation of the IMI was motivated by the importance of administrative cooperation in setting up a dynamic single market, in accordance with the Lisbon Strategy. The IMI should also contribute to strengthening the application of Community law at national level, and therefore the implementation of the “Better Regulation” programme. It is also part of the i2010 eGovernment Action Plan.

A first pilot project was launched in November 2007 for four professions referred to in Directive 2005/36/EC on the recognition of professional qualifications. The system will be progressively extended to other professions.

A second pilot project was launched in January 2009 on the basis of the ‘Services’ Directive. It should last until 28 December 2009, at which date the Directive should be fully transposed by the Member States. The aim is to prepare the implementation of an operational IMI system, covering all service activities by the end of 2009. In the future, the IMI could also be used to strengthen administrative cooperation in other sectors covered by internal market legislation.

Related Acts

Commission Recommendation of 26 March 2009 on data protection guidelines for the Internal Market Information System (IMI) [Official Journal L100 of 18.4.2009].
This Recommendation invites Member States to take measures to implement the guidelines in the Annex. The guidelines concern data protection, the safeguards built into the system and the risks associated with its use.

National IMI coordinators are also encouraged to make contacts with their national data protection authorities with a view to implementing these guidelines in accordance with national law.

The European Commission is to be informed of the implementation of these guidelines not later than nine months after the adoption of this Recommendation.