Keywords
Summary

Keywords

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1. Free movement of goods ° Trade with non-member countries ° Inward processing arrangements ° Release for home use of goods initially subject to inward processing arrangements ° Recovery of the agricultural levy ° Charging of default interest ° Permissible

(Council Directive 69/73, Art. 16)

2. Tax provisions ° Harmonization of laws ° Turnover tax ° Common system of value added tax ° Chargeable event and chargeability of the tax ° Inward processing arrangements ° Release for home use of goods initially subject to inward processing arrangements ° Recovery of the tax payable on imported goods ° Charging of default interest ° Not permissible

(Council Directive 77/388, Arts 10(3), 4th subpara.)

Summary

1. Directive 69/73 on inward processing arrangements allowed a Member State to provide that, in the case of release for home use in the Community of goods previously subject to inward processing arrangements, the agricultural levy payable is to bear default interest for the period between temporary importation and definitive importation.

2. The Sixth Directive, Council Directive 77/388, precludes a Member State from requiring default interest to be charged on the VAT payable in the event of declaration for home use in the Community of goods which were earlier subject to inward processing arrangements for the period between temporary importation and definitive importation.

That possibility is excluded by the fourth subparagraph of Article 10(3) of the directive, which applies to inward processing arrangements and provides that the tax is to become chargeable only when the goods cease to be subject to those arrangements and are declared for home use.