Joined Cases C‑578/10 to C‑580/10

Staatssecretaris van Financiën

v

L.A.C. van Putten and Others

(References for a preliminary ruling
from the Hoge Raad der Nederlanden)

(Articles 18 EC and 56 EC — Motor vehicles — Use in a Member State of a borrowed private motor vehicle which is registered in another Member State — Taxation of that vehicle in the first Member State on its first use on the national road network)

Summary of the Judgment

1.        Free movement of capital — Provisions of the Treaty — Scope

(Art. 56 EC; Council Directive 88/361, Annex I)

2.        Free movement of capital — Restrictions — Tax legislation

(Art. 56 EC)

1.        The cross-border lending of a vehicle free of charge constitutes a capital movement within the meaning of Article 56 EC.

First, ‘loans’ fall under heading XI of Annex I to Directive 88/361 for the implementation of Article 67 of the Treaty, without it being determined whether those loans are for consideration or free of charge or what their particular purpose is. Next, in order to determine whether the tax treatment by a Member State of certain transactions is covered by the provisions on the free movement of capital, there is no need to distinguish between transactions effected in money and those effected in kind. Finally, it is apparent from the inclusion of inheritances and legacies under the above heading that the fact that a transaction is free of charge does not, in itself, prevent it being deemed a movement of capital within the meaning of Article 56 EC. In addition, the loan of a motor vehicle for use free of charge constitutes a benefit which represents a specific economic value, corresponding to the cost of use of a hire car of the same type and for the same period.

(see paras 32-36)

2.        Article 56 EC must be interpreted as meaning that it precludes legislation of a Member State which requires residents who have borrowed a vehicle registered in another Member State from a resident of that State to pay, on first use of that vehicle on the national road network, the full amount of a tax normally due on registration of a vehicle in the first Member State, without taking account of the duration of the use of that vehicle on that road network and without that person being able to invoke a right to exemption or reimbursement where that vehicle is neither intended to be used essentially in the first Member State on a permanent basis nor, in fact, used in that way.

If vehicles which are not registered in a Member State are intended to be used essentially in that State on a permanent basis or if they are, in fact, used in that way, there is not actually a difference between the treatment of a person who resides in that State and uses such a vehicle free of charge and that of a person who uses a vehicle registered in that Member State on the same conditions which was therefore already subject to vehicle tax on its first registration. In those circumstances, the charging of vehicle tax on first use on the road network in the Member State concerned of vehicles which are not registered in that State is justified in the same way as the tax due on the registration of the vehicle in that State. On the other hand, if the vehicles are not intended to be used essentially on a permanent basis or are not, in fact, used in that way, there would be a difference in treatment between the two categories of persons and the charging of the tax concerned would not be justified. In such circumstances, the connection of those vehicles with the Member State would be insufficient to justify the charging of a tax normally due on registration of a vehicle in that State.

(see paras 50-52, 56, operative part)