Concept and Definition of the Community Territory
The term “Community territory” is a central legal concept in European value-added tax law as well as in other areas of law within the European Union (EU). It refers to the geographical area within which the uniform legal provisions of the EU Member States are applied to certain matters of regulation. The precise delimitation of the Community territory is of particular importance for tax law, internal market law, and customs law.
Legal Foundations
The relevant definition and delimitation of the Community territory are derived from European legal acts, primarily from EU directives and regulations. In the area of value-added tax law, the VAT Directive is particularly relevant.
Article 6 of the VAT Directive (Directive 2006/112/EC) defines:
- The territory of each EU Member State, with certain expressly named exceptions, basically constitutes the Community territory within the meaning of VAT law.
Regulations and Implementing Measures:
- Various EU regulations specify or modify the scope of the Community territory in specific legal areas.
Delimitation of the Community Territory in VAT Law
Inclusions and Exclusions
The Community territory, for tax purposes, generally comprises the national territories of all EU Member States. However, there are exceptions for certain areas.
Some of the best-known excluded areas include:
- Canary Islands (Spain)
- Ceuta and Melilla (Spain)
- French overseas territories (France)
- Åland Islands (Finland)
- Mount Athos (Greece)
- British Overseas Territories (e.g., Gibraltar)
For the purposes of VAT, these areas are treated as third territories, even though they are constitutionally part of an EU Member State.
Function and Importance for the Movement of Goods and Services
The delimitation of the Community territory is particularly important for distinguishing between intra-Community supplies and exports to third countries. The system of intra-Community supply applies only within the Community territory.
Significance for Businesses
Businesses operating cross-border within the Community territory must be familiar with the exact definition and delimitation in order to properly fulfill their tax obligations, especially with regard to intra-Community acquisition and supply.
Community Territory in Union Customs Law
Community Territory in Customs Law
The Union Customs Code (UCC; Regulation (EU) No. 952/2013) governs the customs territory of the Union. This is generally, but not entirely, congruent with the tax Community territory. Some territories are part of the Community territory for customs law, even though they are excluded for tax purposes, and vice versa.
Practical Significance
The definition of the Community territory in Union customs law is crucial for the application of customs regulations, customs exemptions, customs procedures, and the incurrence of customs debt. It influences the free movement of goods within the EU and determines where and how customs duties are to be formally levied.
Other Areas of Law
Community Territory in Excise Duty Law
In excise tax law (e.g., for tobacco, alcohol, energy), partly differing definitions of the Community territory are used, based on the specific needs of regulation.
Community Territory in Passenger Traffic and Residence Law
Within the scope of residence and passenger traffic law, the Community territory can also have special significance, for example, for the right of establishment or the abolition of border controls in the Schengen Area.
Summary
The Community territory forms a fundamental reference framework for the application of EU law, in particular in VAT, customs, and excise duty law. It defines the areas to which European regulations are applicable and serves as the basis for legal definitions in the internal market. The exact geographical and legal delimitation is regularly the subject of statutory regulations and adjustments by EU law.
Weblinks
- Value Added Tax Act (UStG) – Community Territory Definition (§ 1a UStG)
- Union Customs Code (UCC) – Regulation (EU) No. 952/2013
- VAT Directive (Directive 2006/112/EC)
Note: The applicable definition of the Community territory can vary depending on the relevant area of law and the current legal situation. In cases of doubt, the definition should always be checked with reference to the relevant legal text.
Frequently Asked Questions
Who is responsible for the maintenance and repair of the Community territory in a condominium owners’ association?
As a rule, the maintenance and repair of the Community territory are the collective responsibility of the condominium owners’ association as a whole, represented by the association of owners pursuant to §§ 21 and 18 WEG (German Condominium Act). This means that all work necessary to preserve, remedy damage to, or restore the proper condition of the common property must be decided collectively at the owners’ meeting. Planning, awarding, and financing such measures are covered by the maintenance reserve fund or through special levies, unless agreed otherwise. In urgent cases, the administrator may initiate immediate measures, but larger or planned works require an appropriate resolution by the community. Individual owners are not generally entitled to take action in respect of the Community territory on their own, unless it concerns emergency measures to prevent greater damage.
Are individual condominium owners permitted to make changes to the Community territory?
No, individual owners are not allowed to make structural modifications, conversions, or changes of use to the common property without a prior, duly adopted resolution of the condominium owners’ association. Any structural change pursuant to § 20 WEG to the Community territory—whether modernization, expansion, or redesign—generally requires a resolution by the community. It should be noted that measures exceeding ordinary maintenance and repair usually require a qualified majority or even the consent of all affected owners, especially if disadvantages are to be expected for one or more owners. Without the necessary approval, any action constitutes a violation of building regulations, which may result in obligations to reverse the work and/or pay damages.
Who bears the costs for measures affecting the Community territory?
The costs for measures relating to the Community territory—i.e., for maintenance, repair, modernization, or structural changes—are generally borne by all condominium owners collectively, in accordance with their respective co-ownership shares as specified in the declaration of division or the community rules (§ 16 WEG). Deviations from cost allocation are possible only if expressly and effectively agreed upon in the community rules or established by a valid majority resolution. In the case of certain modernizations or luxury measures, cost participation may be determined differently, but should be agreed upon by consensus. Cost distribution disputes are ultimately subject to judicial review.
Can the Community territory be assigned an exclusive right of use by resolution of the condominium owners’ association?
As a rule, the Community territory can be granted an exclusive right of use (special right of use) by an appropriate resolution and with the consent of all owners affected by the regulation. The provisions and transfer of exclusive rights of use concerning the common property are primarily governed by the declaration of division and the community rules. It is essential to note that the granting or amendment of a special right of use on common property constitutes a real change in legal status, which requires the consent of all affected owners, notarization, and registration in the land register. Without these prerequisites, the resolution does not have legal effect vis-à-vis third parties.
How are decisions made regarding the use of and disputes concerning the Community territory?
Decisions regarding the use of the Community territory and the resolution of disputes concerning it are made by the association of condominium owners in the owners’ meeting by majority resolution, unless explicit provisions are made in the declaration of division or the community regulations. In case of disagreement regarding use, any owner may request proper management and, if necessary, apply for supplementary rules (§ 18 WEG). In the case of serious disputes or repeated violations of resolutions by individual owners, the community may take legal action for injunctive relief or, in extreme cases, seek removal or claims for damages. Decisions of the owners’ meeting can be subject to judicial review pursuant to § 44 WEG if an owner believes they are disadvantaged thereby.
What rights and obligations do individual condominium owners have in relation to the Community territory?
Each condominium owner has the right to make use of the Community territory within the framework of the agreements made and proper administration. They are required to treat the common property with care, refrain from causing disturbances, damage, or impairments, and to participate in the shared costs in accordance with their co-ownership share. Rights of use may be restricted by law, the declaration of division, or resolutions of the assembly. Obligations particularly include supporting community administration, tolerating necessary maintenance measures, and refraining from unauthorized interventions or blockages of common areas. In the event of breaches of duty, the community may take legal action against an individual owner, ranging from a warning to, in extreme cases, the compulsory sale of condominium ownership under § 17 WEG.
How are changes in use of the Community territory treated legally?
Changes in use of the Community territory always require a properly adopted resolution of the owners’ association and, if necessary, the consent of all affected or impacted parties. Any change beyond the approved use or that restricts the rights of individual owners generally requires consent. This applies to reassignments, change of purpose (e.g., conversion of a children’s playground to a parking area), permanent impairments, or exclusive special rights of use. Without a valid resolution, the change in use is unlawful and affected owners may claim for an injunction, reversal, and/or damages.
