1 Amendments of Heide RÜHLE related to 2007/0238(CNS)
Amendment 11 #
Proposal for a directive – amending act
Recital 6
Recital 6
(6) Experience gained during the recent implementation of the current procedure, whereby the Commission is charged with deciding whether a risk of distortion of competition exists as a result of the application of a reduced VAT rate to natural gas, electricity and district heating, has demonstrated that the procedure is obsolete and superfluous. The rules for determining the place of taxation ensure that VAT is levied at the place where the natural gas, electricity, heat and refrigeration are actually consumed by the customer. They thus prevent any distortion of competition between Member States. Nevertheless, it is still important that the Commission and the other Member States be properly informed whenever a Member State introduces a lower rate in this very sensitive sector. Those reduced VAT rates must be designed to achieve other Community objectives, such as energy or environmental objectives linked to the European Union's commitment under the Kyoto Protocol. Consequently, a prior consultation procedure involving the VAT Committee is needed.