Summary European Taxation KULeuven (C05B3a)

EUROPEAN TAXATION
INHOUDSOPGAVE
I. GENERAL INTRODUCTION...................................................................................................................................................... 4
1) LEGAL BASES OF EUROPEAN TAXATION................................................................................................................................................4
a) EU budget: revenue/expenditure..............................................................................................................................................4
b) Different categories of rules.....................................................................................................................................................6
i. Rules at the EU Level = supranational rules.............................................................................................................................................6
ii. Rules at the Domestic Level.................................................................................................................................................................... 7
c) Overview treaty rules (TEU, TFEU)............................................................................................................................................8
i. General rules on objectives, instruments and powers of the EU.............................................................................................................8
ii. (specific) Treaty rules directly/indirectly relating to taxation.................................................................................................................9
d) Procedural routes to the CJEU (and the GC)...........................................................................................................................26
2) INTERPLAY OF NATIONAL TAX PROVISIONS AND EU LAW: POSITIVE AND NEGATIVE INTEGRATION..................................................................27
a) Hierarchy of norms.................................................................................................................................................................27
i. Within autonomous EU legal order....................................................................................................................................................... 27
ii. Primacy of primary; secondary and tertiary EU Law over all kind of domestic national law and international treaties.......................27
b) Integration of EU law into 27 domestic legal system.............................................................................................................32
i. Positive Integration............................................................................................................................................................................... 32
ii. Negative Integration............................................................................................................................................................................. 33
iii. Methods to solve the conflicts between EU law and domestic law.....................................................................................................35
c) Direct and indirect taxation + arrest Terhoeve.......................................................................................................................39
i. Distinction between direct / indirect taxation.......................................................................................................................................39
ii. Common Ideas valid for both indirect and direct taxes on how to tackle a case..................................................................................40

II. INDIRECT TAXATION........................................................................................................................................................... 43
1) HARMONISATION OF INDIRECT TAXES (ART. 113 TFEU) : ROUGH OVERVIEW.........................................................................43
a) Turnover taxes : value added tax (VAT)..................................................................................................................................43
b) Excise duties............................................................................................................................................................................45
c) Other forms of indirect taxation.............................................................................................................................................47
i. Capital duties......................................................................................................................................................................................... 47
ii. Project digital service tax (DST)/digital advertising tax (DAT)...............................................................................................................50
2) CJ CASE-LAW ON TREATY RULES (ART. 30, 34/35, 110 TFEU)............................................................................................................53
a) Van Gend en Loos NV CJEU 5.2.1963......................................................................................................................................55
b) De Danske Bilimportører v Skatteministeriet (Case C–98/05) 2006.......................................................................................57
c) Commission vs Denmark (27.2.1980) C-171/78......................................................................................................................59
d) John Walker & Sons Ltd..........................................................................................................................................................61
e) Commission vs Belgium C-356/85 1987..................................................................................................................................62
f) CJEU C 142/77 Statens Kontrol med ædle Metaller v. P. Larsen & F. Kjerulff (1978)..............................................................64
III. DIRECT TAXATION............................................................................................................................................................. 65
1) CJ CASELAW ON FUNDAMENTAL FREEDOMS..........................................................................................................................65
a) Free movement of goods (art. 34-35 TFEU)............................................................................................................................65
i. Commission vs France C 18/84 (1985)...................................................................................................................................................65
b) Free movement of workers (art. 45 TFEU)..............................................................................................................................68
i. Hanns-Martin Bachmann vs Belgian State C-204/90 (1992)..................................................................................................................70
ii. CJEU 279/93: Finanzamt Köln-Altstadt v. Roland Schumacker (1995)..................................................................................................74
iii. CJEU C-336/96 Mr & Mrs Gilly v. Directeur des Services Fiscaux du Bas-Rhin (1998)..........................................................................78
iv. CJEU C-385/00 F.W.L de Groot vs Staatssecretaris van Financiën........................................................................................................81
c) Freedom of establishment (art. 49, 54 TFEU).........................................................................................................................83
i. CJ, 13.7.1993, C-330/91, The Queen v. Revenue Commissers, ex parte Commerzbank AG...................................................................85
ii. CJ, 11.8.1995, C-80/94, G.H.E.J. Wielockx v. Inspecteur der directe belastingen..................................................................................87
iii. CJ, 13.12.2005, C-446/03, Marks & Spencer plc v. Halsey (H.M.´s Inspector of Taxes)........................................................................91
iv. CJ, 12.9.2006, C-196/04, Cadbury Schweppes plc v. Commissioners of Inland Revenue.....................................................................95
d) Freedom to provide services (art. 56, 57 TFEU)......................................................................................................................99
i. CJ, 28.10.1999, C-55/98, Skatteministeriet v. Bent Vestergaard..........................................................................................................101
1

, e) Free movement of capital (art. 63(1) TFEU).........................................................................................................................105
i. EU-Situations between MSs................................................................................................................................................................. 105
A. CJ, 6.6.2000, C-35/98, Staatssecretaris van Financiën v. B.G.M. Verkooijen.................................................................................108
B. CJ, 14.9.2006, C-386/04, Centro di Musicologia Walter Stauffer v. Finanzamt München..............................................................111
ii. Third country situations...................................................................................................................................................................... 114
A. C-157/05 Wilfried L. Holböck v. Finanzamt Salzburg-Land (2007).................................................................................................115
B. CJEU 13.11.2012, C-35/11, Test Claimants FII Group Litigation (II) v. Commissioners for HMRC...................................................118
C. CJ, 18.12.2007, C-101/05, Skatteverket v. A..................................................................................................................................120
f) Free movement of EU citizens (art. 18, 21 TFEU)..................................................................................................................123
i. CJEU C-520/04 Pirkko Marjatta Turpeinen (2006)...............................................................................................................................124
2) HARMONIZATION OF DIRECT TAXES (ART. 115 TFEU): THE STATUS QUO..............................................................................128
a) Merger directive...................................................................................................................................................................128
b) Parent-subsidiairy directive..................................................................................................................................................128
i. Introduction......................................................................................................................................................................................... 128
ii. Goals................................................................................................................................................................................................... 129
iii. Structure............................................................................................................................................................................................ 129
iv. Territorial Scope................................................................................................................................................................................ 130
A. Cross-border distribution of profits between EU MS: Art. 1(1) (a)-(d)...........................................................................................130
v. Objective = Substantive Scope............................................................................................................................................................ 131
vi. Subjective = Personal Scope.............................................................................................................................................................. 132
vii. Prohibition of Withholding Tax (Article 5): Obligations for the Subsidiary MS..................................................................................133
viii. Obligations for the Parent MS.......................................................................................................................................................... 134
ix. Other Forms of Tax Relief.................................................................................................................................................................. 135
x. CJEU Joined Cases C-283, C-291 & C-292/94, Denkavit International BV et al. v. Bundeszentralamt Steuern (1996).........................137
xi. Amendments..................................................................................................................................................................................... 138
A. Amendments to Counter BEPS......................................................................................................................................................138
B. 2014 Amendment.......................................................................................................................................................................... 138
C. 2015 Amendment.......................................................................................................................................................................... 139
c) Interest and royalties directive..............................................................................................................................................140
i. Introduction......................................................................................................................................................................................... 140
ii. Goals................................................................................................................................................................................................... 141
iii. Structure............................................................................................................................................................................................ 142
iv. Core Rule (≈fundamental rule)........................................................................................................................................................... 142
v. Objective Scope.................................................................................................................................................................................. 142
vi. Subjective Scope................................................................................................................................................................................ 143
vii. Exclusions From Scope...................................................................................................................................................................... 145
viii. Measures Against Fraud, Abuse etc.................................................................................................................................................146
ix. Procedural Aspects............................................................................................................................................................................ 146
x. CJEU: Joined Cases C-115, C-118, C-119 & C-299/16, N Luxembourg 1 et al. (here: C-119/16, C Danmark I) (2019)..........................147
d) Anti-tax avoidance directive.................................................................................................................................................149
i. Introduction......................................................................................................................................................................................... 149
ii. Development...................................................................................................................................................................................... 149
iii. Goals.................................................................................................................................................................................................. 149
iv. Structure............................................................................................................................................................................................ 150
v. Scope.................................................................................................................................................................................................. 150
vi. Interest Limitation Rule (Article 4).....................................................................................................................................................151
vii. Exit Taxation (Article 5)..................................................................................................................................................................... 152
viii. Hybrid mismatches (Arts 9, 9a, 9b)..................................................................................................................................................154
ix. CFC Rules (Arts 7 & 8)........................................................................................................................................................................ 157
x. GAAR (Article 6).................................................................................................................................................................................. 159
e) Pillar Two Directive...............................................................................................................................................................160
f) Directive on « faster and safer relief of excess withholding taxes ».....................................................................................160
g) Current commission activities...............................................................................................................................................160
i. Communication on current focus........................................................................................................................................................ 160
ii.Project « Taxation of significant digital presence »..............................................................................................................................160
iii. BEFIT.................................................................................................................................................................................................. 160
iv. New project « Head Office Tax System »...........................................................................................................................................160
h) Annex : EU list of non cooperative jurisdiction.....................................................................................................................160
IV. PROCEDURAL ISSUES (DIRECT AN INDIRECT TAXATION)................................................................................................... 162
1) CO-OPERATION BETWEEN NATIONAL TAX AUTHORITIES.......................................................................................................................162
a) EU rules on mutual assistance..............................................................................................................................................162

2

, b) Recovery of claims................................................................................................................................................................167
2) INFRINGEMENT OF EU LAW: POTENTIAL CONSEQUENCES....................................................................................................168
V. STATE AIDS...................................................................................................................................................................... 171
1) OVERVIEW............................................................................................................................................................................. 171
2) PROCEDURAL QUESTIONS..................................................................................................................................................... 173
a) Pivotal role of the European Commission.............................................................................................................................173
i. Repressive supervision of “existing” aid..............................................................................................................................................173
ii. Preventive control of “new” aid......................................................................................................................................................... 173
b) Supplementary role of domestic courts................................................................................................................................174
3) SUBSTANTIVE ISSUES................................................................................................................................................................... 175
a) Criteria for forbidden State aid (Art. 107(1) TFEU) (1).........................................................................................................175
i. Imputability of relevant measure to a MS...........................................................................................................................................175
ii. Economic advantage for recipient(s)..................................................................................................................................................176
iii. Selectivity.......................................................................................................................................................................................... 176
iv. Negative effect on competition and cross-border trade in EU...........................................................................................................177
b) Regional selectivity...............................................................................................................................................................180
c) Material selectivity................................................................................................................................................................183
i. Aid schemes......................................................................................................................................................................................... 183
ii. Individual aid measures...................................................................................................................................................................... 186




3

, I. GENERAL INTRODUCTION
1) Legal bases of European taxation
a) EU budget: revenue/expenditure
- EU is a supranational organization and has its own budget
o 27 individual member states  what are the main sources in most
countries for finances of public spendings ?
  taxes
o This is the same in the EU
o Rules of the budget are in the TFEU: financial provisions (art. 310-324)


- Art. 312 TFEU: expenditure (where does the money go?)
o Multiannual framework (MFF) which aims what they will potentially
spend/how much over the next 7 years minimum 5 years, but the EU takes
a 7 year period) and where they should get that money from  subdivided
into annual budgets (so in 7 parts)
 So the MFF 2021-2027 is 1,2 trillion € subdivided in 7 parts (budget
for 2021 = 170 billion €.
o The current MFF is going to be for 2021-2027: €1, 200 billion (= €1, 2 trillion)
o The typical types of EU expenditure are
 The EU policy areas = payments through programmes such as
single market, innovation, digitalisation, environmental protection,
border control, defence
 The EU Public Administration = salaries, health insurance, pensions
o Plus new temporary instrument “NextGenerationEU” (for 2021-2026): to
support economic recovery from COVID pandemic (ca. € 800 bln)
 EU borrowed money to help member states after Covid-19.

- Art. 311 TFEU: revenue (where does the money come from?)
o There is a traditional system of own resources disputed between EU
institutions
o The main part of the EU Budget comes from the own resources (90%) of the
EU
- What about the elements of the EU Budget?
o Own Resources: 142.4 billion (ca. 90%): most important part
 Traditional own resources = customs duties on 3rd country imports
 If China for example exports products in Zaventem  10%
customs duties for EU (and not Belgium !)
 Fixed share of national VAT base, thus not the amount VAT levied by
a MS but the taxable base under VAT law on which this is to be
calculated  2/3 of the total budget
 Example : France has a taxable base of VAT of 1000 billion€.
The UE takes a fixed share of 0,3% (=3 billion€). But France
earns 200 billion with the VAT tax  we don’t care ! What’s
matter is the taxable base !
 Fixed amount based on Gross National Income (GNI) (66,1% of total
EU revenue)
 GNI = What is produced by the residents or nationals of a
country, regardless of where they live.
- Other Revenue: 15.7 billion (ca. 10%): everything that is earned by the EU
o Competition law fines (cartels etc.), when big undertakings abuse a
dominant position or have cartels on certain products to the disadvantage of
customers
4

, o Receipts of interest payments, EU money on bank accounts can deliver some
interest
o Repayments of unused financial assistance, when aid paid by the EU is not
used it will flow back
o Various other receipts (e.g., donations, contributions from non-EU countries to
certain programmes)
o Tax on salary of EU officials: this is actual the only actual tax the EU is levying
on the whole budget. It’s some sort of withholding tax, only the net payment
is made and the rest stays in the budget. For instance in 2012 the nobel price
paid was awarded to the EU as supranational institution and the question
where does money go? It went to the other EU revenue.
 It is the only « EU tax » because there is not a real directly paid taxe to
EU !
- Wanting to reform the own resources: already long reform discussion
o Last proposal: COM(2025) 574 of 16.7.2025  pending in council
o (following 2021/2023 proposals): “call rates” to MS revenues from trade in
environmental certificates = 30 % to Emissions Trading System (ETS) and 75 % to
Carbon Border Adjustment Mechanism (CBAM)
 ETS = Some companies can buy the right « to pollute »  it costs money
 CBAM = Tax for imported products (like Chinees products for example)
 Call rates = it’s the % that the EU takes on the revenue of the MS about a
subject
o New: “call rates” to MS on electric/electronical waste and manufactured
tobacco/tobacco products released for consumption and annual lump sum
contribution by large companies with annual turnover > EUR 100 mill. (“Corporate
Resource for Europe”; CORE) !!
 But CORE is pending !
- There is no European mechanism which applies taxes directly to individuals or
enterprises
o There are no real taxes directly paid to the EU: VAT is paid to the member
states and trough the system of own resources there is national contribution
o There is a very small and closed system on the basis of EU Law taxes
which are being paid directly: the taxation of EU officials (every month salary
of these officials is taxed)
 Wage witholding tax  so EU officials dont have to pay this tax
beacause the EU levies this amount directly

- The legal basis of these EU Officials Taxes
o Council Regulation 260/68 of 29.2.1968: Article 2: The following persons shall
be liable to the tax:
 Persons coming under the Staff Regulations of Officials or the
Conditions of Employment of Other Servants of the Communities,
including recipients of the compensation provided for in the event of
removal from post in the interests of the service, but excluding local
staff;
 People that works for the Consel but not a taxi driver for an EU
event in Kenya for example
 In the interests of the service  it’s the EU that remove the EU
officials (he’s not removed because he made a mistake for
example)
 Recipients of the compensation on termination of service provided
for in Article 5 of Council Regulation (EEC, Euratom, ECSC) No 259/68
5

,  So for the end of the service/post
o First EU Tax that came to the COJ: Case 6/60 Humblet 16.12.1960
- Conclusion: there is no real EU tax (yet)!
o There is no legal basis for a real EU tax  system of own resources: only
contributions by MS to EU, not directly by taxpayers
(individuals/enterprises) to the EU
o Currently: “European Taxation” = national tax systems of EU Member States
(MS) under the influence of EU law (“Europeanisation” of national laws)
 We’ll see how national systems are influenced by the EU
o The rules may be Europeanized but the levied money goes into domestic
budgets and the MS have to make contributions, but this is not a direct tax
from the EU
o Acceptance of 2025 proposal for CORE as new “own resource” could be the first step
to change this:
  owed directly by enterprises to EU = not only contributions by MS to EU
  BUT: factual collection by MS (similar to customs duties)


b) Different categories of rules
- Domestic legal order and EU legal order  pyramid
o EU legal order = supranational rules at EU level
 EU primary law
 EU secondary law
 EU tertiary law
 Other instruments: not binding
o Member states legal order
 Domestic constitutional rules
 All kinds of other law
 International conventions: treaties between member states
(difference between dualistic and monistic approach)

i. Rules at the EU Level = supranational rules
- Primary EU law
o Explicit rules EU Treaty (TEU) and the Treaty on the Functioning of the EU
(TFEU) and the protocols annexed
o Charter of Fundamental Rights + art. 6(1) TEU (link to the EU charter of
fundamental rights)
o Unwritten general principles + unwritten fundamental rights + art. 6 (3) TEU
 Rule of reason
 When a national rule blocks a liberty but it can be justified and be
proportional
 Proportionality
 Fundamental rights
 Common principles have been accepted as fundamental rights

- Secondary Law (Art 288 TFEU) (based on primary law, eg. Legal competence is
given in a treaty so they can make a directive)
o Regulations
 Have direct effect
 The legislative act is binding as it stands: hat MS should apply this as if
it were domestic law
 Regulations and directives are both abstract rules of EU legislation but
6

, they are different on the transposition issue
o Directives:
 Need to be transposed into domestic regulations: directive is passed
on European level, but must be translated in the domestic legal order
 This is a two-step process, this transposition may give the MS margin
o Decisions by EU Commission
 Eg. Cartel cases where commission gives a fine or state aid cases
 This would be an administrative act in domestic law, it is addressed to
an individual (MS) or to one single enterprise
 In common with regulations: both legislative measures by the
institutions, important for all MS and they contain rules that are
applicable in all similar cases
o Recommendations, opinions
 Non-legislative, non-binding law (does not have to be followed)
- Tertiary Law: based on secondary Law
o Delegated Acts (Art 290 TFEU)
 On the basis of a delegation, the commission may act
 There is a fine distinction between the two: both acts can be
developed in a directive or a regulation
 There are competences usually delegated to the Commission: a
Commission Directive for instance will be a delegated act and not a
directive itself
 So the directive gives the main idea  the Commission has to develop
the details  So the Commission can add or alter some things about
the secondary law
o Implementing Acts: (Art 291 TFEU)
 One of the measures for the free traffic is the need for documents who
are harmonized for every MS and translated to every language
 It is thus up to the commission to provide the MS with the correct
documents
 So we can have the same rules for each MS  the Commission cannot ad
some things, Commission has to apply the law (uniform for each country)

- We can also find other non-binding instruments: communications, resolutions,
declarations, notices, reports, green/white books/papers
o When major harmonization process is on its way they make this to explain
what they want to achieve in the upcoming years, then people can comment
etc.

ii. Rules at the Domestic Level
- (Tax) rules at the national level of the MS
o Domestic constitutional rules
o Domestic federal/ regional/ local rules (created by legislation, jurisprudence
or administrative practices: they may have interpretation of domestic
legislation)
 General tax provisions
 Specific tax legislation
 Substantive/ procedural rules
o International (tax) conventions between MS: most frequently used are
Double Tax Conventions that may be bilateral or multilateral between MS or
third countries
 Bilateral/multilateral treaties
7

,  Between MS (“inter se”) or between MS and third countries
 Substantive/ procedural rules

- If you take the above together you can imagine how many points of contact we can
find between domestic and EU law: you may have federal rules concerning VAT
regulations, you may also have local rules who interfere with EU law
o Upcoming weeks we will try to show how the different levels work together
with European law

- As far as international treaties are concerned, how these interfere with the domestic
law it depends on whether the country is monistic or dualistic
o Dualistic: they work together and as soon as it is concluded the international
treaty will make part of domestic law
 +/- direct effect
o Monistic: the international convention is separated from domestic law and it
needs a law which says they allow the international convention to be
applicable in domestic law (they can never apply unless it is specifically
mentioned)
 +/- need to be transposed


c) Overview treaty rules (TEU, TFEU)
- We can point out three different kinds of rules
o General rules spelling out the objectives of the EU, the instrumental
policies to attain these objectives, and the powers of the EU
o Specific treaty provisions on (direct and indirect) tax matters
o Specific treaty provisions on other matters, but with an effect also for (direct
or indirect) taxes

i. General rules on objectives, instruments and powers of the EU
EU Objectives and Tasks
- Art. 3 TEU: objectives and tasks of the Union (inter alia)
o Internal market: this is the most important objective of the EU
o Economic and monetary union
o Harmonious and balanced economic growth and price stability
o Sustainable non-inflationary growth
o Protection + improvement of environment
o Highly competitive social market economy (full employment + social progress)
o Social justice and protection
Competences
- Article 3 TFEU: exclusive competences
o The Union shall have exclusive competence in the following areas: customs
union, establishment of competition rules, ...
o For certain topics, the EU may act and pass secondary legislation
o Exclusive = only EU can act
- Article 4 TFEU: shared competences
o Eg. In the area of everything in the internal market: everything that is
connected to cross economy activities is shared competence
• We can have secondary legislation passed by the EU and have
laws of the member states
• So a lot of clashes are possible for the internal market
- Definition of the internal market in art. 26 TEU
8

, o No legal of factual borders by member states to inhibit the free movement
between member states
o Cross border economic flow of commerce
 All the cross border economic exchanges (so between MS)
o Note: electricity is also a good under the Treaties scope
- Art. 5 TFEU: scope of the powers of the union (primary law)
o Goes back to the idea of how the European communities have been created
o Attributed powers: powers conferred by member states
 Only attributed powers (principle of “conferral”) within limits of
subsidiarity and proportionality
o Implicit powers in art. 352 TFEU: fill certain gaps (not used often)
 Very limited exception for actions without explicit powers

- How competences are exercised trough the different instruments of the EU (art. 288
TFEU)
o Regulations, Directives, Decisions: depending on subject matter + relevant
competence rule
o Can only be used if there is a competence rule
o In that competence rule, usually the type of legal instrument is mentioned
 Competence rules in art. 113 for indirect taxes and in art. 115 for direct
taxes
 Only if the topic you want to cover is mentioned in the articles you
can take measures, and see how you have to act (trough which
instrument)  so EU need an article to act.

General Obligations of the Member States
- Union Loyalty (Article 4.3 TEU)  2 dimensions
o Vertical: between EU and MS
o Horizontal: between different EU institutions or between different MS
- Effect utile: an effect that a MS should use that achieve the EU aim the best as
possible, they have to give the best possible effect to the directive.
- Article 18.1 TFEU: general principle of non-discrimination on grounds of nationality
within the scope of application of the TEU or the TFEU (without prejudice to any
special provision contained therein)
o Within the area of fundamental freedoms, article 18 doesn´t come into play
because there are special provisions

ii. (specific) Treaty rules directly/indirectly relating to taxation
Introduction
- They are mainly related to the fundamental freedoms:
o Free movement of EU citizens (Article 21 TEU)
o Free movement of goods
 Article 28-33: TFEU: customs union
 Article 34-37 TFEU: prohibition of quantitative restrictions and
measures having an equivalent effect on imports and exports
 These articles are also relevant for taxation however tax is not
explicitly mentioned in the articles
o Free movement of persons, services and capital
 Principles of non- discrimination and non-restriction: articles 45-66 TFEU
o Prohibition of state aids: article 107-109 TFEU
o Rules on indirect taxes: article 110-113 TFEU
o General competence for harmonization (approximation) of national laws
concerning the internal market: article 115 TFEU
9

, o Specific competences for fiscal rules: Art. 179(2) TFEU (research & development); Art.
192(2)(a) TFEU (environment); Art. 194(3) TFEU (energy)]

Free Movement of Goods
Article 28 TFEU: Definition of customs union
- Concept of full customs union of all MS (products originating in MS + products
from a 3rd country which are admitted to free circulation within EU, art. 29 TFEU)
- This concept is related to the free circulation of products within the EU in which
products from 3rd countries can also participate when they are admitted in free
circulation through the payment of customs duties as an entry fee
- The customs procedure has two dimensions
o Internal dimension: no customs duties between MSs when crossing the
internal borders  Common EU Customs Tariff
o External dimension: common EU customs tariff for relations between MSs
and third countries  goods coming in from 3rd countries still have to pay
customs duties

Article 30 TFEU: prohibition of customs duties on import and export and of
charges having equivalent effect in relation between MSs  internal dimension
- CJEU: C 26/62: Van Gend & Loos:
o The claimants, van Gend en Loos, imported chemicals from Western
Germany to the Netherlands where they were asked to pay import taxes at
Dutch customs
o The defendants ran to the European Economic Community’s prohibition on
inter-State import duties (art. 12 of the Treaty of Rome): as the claimants were
not a natural person but a legal person, they could not claim such rights
o The question asked was: Whether the European Community treaty gave rise
to actionable rights and whether legal persons could rely upon such rights in
the same manner as natural persons?
o Conclusion of the court
 Article 12 (article 18 TFEU) of the treaty establishing the
European Economic Community produces direct effects and creates
individual rights which national courts must protect
 So if from Germany to the Netherlands a good is transported across the
border, then no custom duties are charged (no bar at the customs
border)

Article 31 TFEU: Common Customs Tarif f duties in relation to third countries
shall be fixed by the Council on a proposal from the Commission  external
dimension
- This is equivalent to common means for all the 27 MS all of which must apply the
same rules in this field once dealing with products in the EU territory
o Eg. Good coming in from Japan and same good from China, it should be
subject to the same rule when it arrives in Belgium + according to the
common custom tariff, the same amount should be charged when the
good arrives in another member state (same custom duties should be
charged)

- First regulations dating back to 1960’s
o Tariff classification (goods): Regulation 2658/87 with combined
nomenclature (based on harmonized system of world customs
organization = WCO)
 Annual updates
10