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Freedom of establishment

The term "Flagging Out" originates from the seafaring and means the changing of the national flag, with no change in the ownership of the vessel. The conditions in the topic of traffic are created to save charges.

ECJ confirms:

German tax authorities may not collect taxes from trucks approved in other EU countries with an internal traffic lawfully granted approval to carry out cabotage by their registration-country. This devastating verdict for the German tax authorities was announced by the European Court of Justice (ECJ) in Luxembourg (Case C-115/00), according to the Federal Association of road haulage and logistics Disposal (BGL) eV.With a look at the freedom to provide services in the European Union, the ECJ made in a preliminary ruling on the request of the Munster Finance court clear that a transport company could not be forced to authorize their trucks in the so-called host country of the cabotage and not be connected to a further tax payment, even if the vehicles have their regular location in the country of cabotage, i.e. the use of the vehicles is specified there.

On the one hand, the highest instance has confirmed that the existing substantial deficits in harmony do not only exist in cross-border road transport, but also in inland traffic to the detriment of domestic carriers. On the other hand, the ECJ-decision points a way out of this tax disadvantage for transport companies fighting for financial survival in Germany, Austria and Switzerland as a location of industry
According to calculations the amount saved on any flagged out Truck can rise up to € 50,000 annually.

More informations regarding Flagging out can be found >>here<< (in german)

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