In its recent judgment Scorpio, the ECJ ruled that Articles 59 and 60 of the EEC Treaty must be interpreted as not precluding national legislation under which a procedure of retention of tax at source is applied to payments made to providers of services not resident in the Member State in which the services are provided, whereas payments made to providers of services resident in that Member State are not subject to such a retention. The Austrian Supreme Administrative Court has already tried to implement this ECJ case law: In its decision of October 19, 2006, the Supreme Administrative Court decided that Austria still has the right to levy a withholding tax on remuneration paid to certain providers of services. Michael Lang analyzes this decision very critically.