# CE2009294EN.01009501.xml

| 3.12.2009 | EN | Official Journal of the European Union | CE 294/95 |
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3.12.2009

EN

Official Journal of the European Union

CE 294/95

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Tuesday 8 July 2008Common system of value added tax *

P6_TA(2008)0319

European Parliament legislative resolution of 8 July 2008 on the proposal for a Council directive amending VAT Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (COM(2007)0677 — C6-0433/2007 — 2007/0238(CNS))

2009/C 294 E/28

(Consultation procedure)

The European Parliament,

The European Parliament

having regard to the Commission proposal to the Council (COM(2007)0677),

having regard to Article 93 of the EC Treaty, pursuant to which the Council consulted Parliament (C6-0433/2007),

having regard to Rule 51 of its Rules of Procedure,

having regard to the report of the Committee on Economic and Monetary Affairs (A6-0232/2008),

| 1. | Approves the Commission proposal as amended; |
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1.

Approves the Commission proposal as amended;

| 2. | Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty; |
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2.

Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

| 3. | Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament; |
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3.

Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

| 4. | Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially; |
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4.

Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;

| 5. | Instructs its President to forward its position to the Council and the Commission. |
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5.

Instructs its President to forward its position to the Council and the Commission.

| TEXT PROPOSED BY THE COMMISSION | AMENDMENTS |
| --- | --- |
| Amendment 1 |
| Proposal for a directive — amending act


  Recital 2 |
| (2) | Regarding the provisions on imports and the place where the supply of natural gas and electricity is taxed, the special scheme set up under Council Directive 2003/92/EC of 7 October 2003 amending Directive 77/388/EEC as regards the rules on the place of supply of gas and electricity does not apply to imports or supplies of natural gas by pipelines that are not part of the distribution system, and in particular pipelines in the transmission system by which almost all cross-border transactions by pipeline are carried out. The scope of the special scheme should therefore be extended to include imports and supplies of natural gas by any pipeline. |

TEXT PROPOSED BY THE COMMISSION

AMENDMENTS

Amendment 1

Amendment 1

Proposal for a directive — amending act

Proposal for a directive — amending act

Recital 2

Recital 2

(2)

Regarding the provisions on imports and the place where the supply of natural gas and electricity is taxed, the special scheme set up under Council Directive 2003/92/EC of 7 October 2003 amending Directive 77/388/EEC as regards the rules on the place of supply of gas and electricity does not apply to imports or supplies of natural gas by pipelines that are not part of the distribution system, and in particular pipelines in the transmission system by which almost all cross-border transactions by pipeline are carried out. The scope of the special scheme should therefore be extended to include imports and supplies of natural gas by any pipeline.

| (2) | Under the current rules, VAT on natural gas and electricity is levied at the place of actual consumption by the customer. Those rules prevent any distortion of competition between Member States
  . Regarding the provisions on imports and the place where the supply of natural gas and electricity is taxed, the special scheme set up under Council Directive 2003/92/EC of 7 October 2003 amending Directive 77/388/EEC as regards the rules on the place of supply of gas and electricity does not apply to imports or supplies of natural gas by pipelines that are not part of the distribution system, and in particular pipelines in the transmission system by which almost all cross-border transactions by pipeline are carried out. The scope of the special scheme
  is unduly restricted, does not correspond to the economic reality and
  should therefore be extended to include imports and supplies of natural gas by any pipeline.
  More clarity is needed, furthermore, in order to ensure the consistent application and interpretation of Directive 2006/112/EC throughout the Community, in line with the definitions laid down in Article 2 of Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas
   (1)

  , which explain what is meant by the transmission and distribution of gas through pipelines. |
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(2)

Under the current rules, VAT on natural gas and electricity is levied at the place of actual consumption by the customer. Those rules prevent any distortion of competition between Member States
  . Regarding the provisions on imports and the place where the supply of natural gas and electricity is taxed, the special scheme set up under Council Directive 2003/92/EC of 7 October 2003 amending Directive 77/388/EEC as regards the rules on the place of supply of gas and electricity does not apply to imports or supplies of natural gas by pipelines that are not part of the distribution system, and in particular pipelines in the transmission system by which almost all cross-border transactions by pipeline are carried out. The scope of the special scheme
  is unduly restricted, does not correspond to the economic reality and
  should therefore be extended to include imports and supplies of natural gas by any pipeline.
  More clarity is needed, furthermore, in order to ensure the consistent application and interpretation of Directive 2006/112/EC throughout the Community, in line with the definitions laid down in Article 2 of Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas
   (1)

  , which explain what is meant by the transmission and distribution of gas through pipelines.

Under the current rules, VAT on natural gas and electricity is levied at the place of actual consumption by the customer. Those rules prevent any distortion of competition between Member States

is unduly restricted, does not correspond to the economic reality and

More clarity is needed, furthermore, in order to ensure the consistent application and interpretation of Directive 2006/112/EC throughout the Community, in line

1

, which explain what is meant by the transmission and distribution of gas through pipelines.

Amendment 2

Amendment 2

Proposal for a directive — amending act

Proposal for a directive — amending act

Recital 3

Recital 3

| (3) | The special scheme does not currently apply to imports and supplies of natural gas by vessels for transporting natural gas either, even though such gas is identical in terms of its characteristics to that imported or supplied by pipeline and intended, following gasification, for transportation by pipeline. The scope of the special scheme should therefore be extended to include imports and supplies of natural gas by vessels for transporting natural gas. |
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(3)

The special scheme does not currently apply to imports and supplies of natural gas by vessels for transporting natural gas either, even though such gas is identical in terms of its characteristics to that imported or supplied by pipeline and intended, following gasification, for transportation by pipeline. The scope of the special scheme should therefore be extended to include imports and supplies of natural gas by vessels for transporting natural gas.

| (3) | The special scheme does not currently apply to imports and supplies of natural gas by vessels for transporting natural gas either, even though such gas is identical in terms of its characteristics to that imported or supplied by pipeline and intended, following gasification, for transportation by pipeline. The scope of the special scheme should therefore be extended to include imports and supplies of natural gas by vessels for transporting natural gas
  between pipelines
  . |
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(3)

The special scheme does not currently apply to imports and supplies of natural gas by vessels for transporting natural gas either, even though such gas is identical in terms of its characteristics to that imported or supplied by pipeline and intended, following gasification, for transportation by pipeline. The scope of the special scheme should therefore be extended to include imports and supplies of natural gas by vessels for transporting natural gas
  between pipelines
  .

between pipelines

Amendment 3

Amendment 3

Proposal for a directive — amending act

Proposal for a directive — amending act

Recital 4

Recital 4

| (4) | The first cross-border heat and refrigeration networks are already operational. The same issues that
  apply
  to the supply and import of natural gas or electricity also
  apply
  to the supply and import of heat or refrigeration.
  Under the current rules, VAT on natural gas and electricity is levied at the place where they are actually consumed by the customer. The rules thus prevent any distortion of competition between Member States.
  Consequently, the same scheme that applies to natural gas and electricity should be applied to heat and refrigeration. |
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(4)

The first cross-border heat and refrigeration networks are already operational. The same issues that
  apply
  to the supply and import of natural gas or electricity also
  apply
  to the supply and import of heat or refrigeration.
  Under the current rules, VAT on natural gas and electricity is levied at the place where they are actually consumed by the customer. The rules thus prevent any distortion of competition between Member States.
  Consequently, the same scheme that applies to natural gas and electricity should be applied to heat and refrigeration.

apply

apply

Under the current rules, VAT on natural gas and electricity is levied at the place where they are actually consumed by the customer. The rules thus prevent any distortion of competition between Member States.

| (4) | The first cross-border heat and refrigeration networks are already operational. The same issues that
  arise with regard
  to the supply and import of natural gas or electricity also
  arise with regard
  to the supply and import of heat or refrigeration. Consequently, the same scheme that applies to natural gas and electricity should be applied to heat and refrigeration. |
| --- | --- |

(4)

The first cross-border heat and refrigeration networks are already operational. The same issues that
  arise with regard
  to the supply and import of natural gas or electricity also
  arise with regard
  to the supply and import of heat or refrigeration. Consequently, the same scheme that applies to natural gas and electricity should be applied to heat and refrigeration.

arise with regard

arise with regard

Amendment 4

Amendment 4

Proposal for a directive — amending act

Proposal for a directive — amending act

Recital 6

Recital 6

| (6) | Experience gained during the recent implementation of the
  current
  procedure, whereby the Commission is charged with deciding whether a risk of distortion of competition exists as a result of the application of a reduced VAT rate to natural gas, electricity and district heating, has demonstrated that the procedure is obsolete and superfluous. The rules for determining the place of taxation ensure that VAT is levied at the place where the natural gas, electricity, heat and refrigeration are actually consumed by the customer. They thus prevent any distortion of competition between Member States. Nevertheless, it is still important that the Commission and the other Member States be properly informed whenever a Member State introduces a lower rate in this very sensitive sector. Consequently, a prior consultation procedure involving the VAT Committee is needed. |
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(6)

Experience gained during the recent implementation of the
  current
  procedure, whereby the Commission is charged with deciding whether a risk of distortion of competition exists as a result of the application of a reduced VAT rate to natural gas, electricity and district heating, has demonstrated that the procedure is obsolete and superfluous. The rules for determining the place of taxation ensure that VAT is levied at the place where the natural gas, electricity, heat and refrigeration are actually consumed by the customer. They thus prevent any distortion of competition between Member States. Nevertheless, it is still important that the Commission and the other Member States be properly informed whenever a Member State introduces a lower rate in this very sensitive sector. Consequently, a prior consultation procedure involving the VAT Committee is needed.

current

They

| (6) | Experience gained during the recent implementation of the procedure
  laid down in Article 102 of Directive 2006/112/EC
  , whereby the Commission is charged with deciding whether a risk of distortion of competition exists as a result of the application of a reduced VAT rate to natural gas, electricity and district heating, has demonstrated that the procedure is obsolete and superfluous. The rules for determining the place of taxation ensure that VAT is levied at the place where the natural gas, electricity, heat and refrigeration are actually consumed by the customer
  , which makes the VAT rate neutral. Those rules thus prevent any distortion of competition between Member States. Nevertheless, it is still important that the Commission and the other Member States be properly informed whenever a Member State introduces a lower rate in this very sensitive sector. Consequently, a prior consultation procedure involving the VAT Committee is needed. |
| --- | --- |

(6)

Experience gained during the recent implementation of the procedure
  laid down in Article 102 of Directive 2006/112/EC
  , whereby the Commission is charged with deciding whether a risk of distortion of competition exists as a result of the application of a reduced VAT rate to natural gas, electricity and district heating, has demonstrated that the procedure is obsolete and superfluous. The rules for determining the place of taxation ensure that VAT is levied at the place where the natural gas, electricity, heat and refrigeration are actually consumed by the customer
  , which makes the VAT rate neutral. Those rules thus prevent any distortion of competition between Member States. Nevertheless, it is still important that the Commission and the other Member States be properly informed whenever a Member State introduces a lower rate in this very sensitive sector. Consequently, a prior consultation procedure involving the VAT Committee is needed.

laid down in Article 102 of Directive 2006/112/EC

, which makes the VAT rate neutral.

Amendment 5

Amendment 5

Proposal for a directive — amending act

Proposal for a directive — amending act

Recital 7

Recital 7

| (7) | The joint undertakings and other structures set up under Article 171 of the EC Treaty are responsible for implementing Community policies. In order to avoid taxation benefiting the Member State where the tax is payable, to the detriment of the other Member States and the European Communities, it is necessary to grant the VAT exemption on input purchases to joint undertakings set up by the Communities that have legal personality and receive contributions charged to their general budget under Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities. |
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(7)

The joint undertakings and other structures set up under Article 171 of the EC Treaty are responsible for implementing Community policies. In order to avoid taxation benefiting the Member State where the tax is payable, to the detriment of the other Member States and the European Communities, it is necessary to grant the VAT exemption on input purchases to joint undertakings set up by the Communities that have legal personality and receive contributions charged to their general budget under Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities.

| (7) | The joint undertakings and other structures set up under Article 171 of the EC Treaty are responsible for implementing Community policies. In order to avoid taxation benefiting the Member State where the tax is payable, to the detriment of the other Member States and the European Communities, it is necessary to grant the VAT exemption on input purchases to joint undertakings set up by the Communities that have legal personality and receive contributions charged to their general budget under Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities
  , provided that they do not exercise any economic activity within the meaning of the second subparagraph of Article 9(1) of Directive 2006/112/EC. |
| --- | --- |

(7)

The joint undertakings and other structures set up under Article 171 of the EC Treaty are responsible for implementing Community policies. In order to avoid taxation benefiting the Member State where the tax is payable, to the detriment of the other Member States and the European Communities, it is necessary to grant the VAT exemption on input purchases to joint undertakings set up by the Communities that have legal personality and receive contributions charged to their general budget under Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities
  , provided that they do not exercise any economic activity within the meaning of the second subparagraph of Article 9(1) of Directive 2006/112/EC.

, provided that they do not exercise any economic activity within the meaning of the second subparagraph of Article 9(1) of Directive 2006/112/EC.

Amendment 6

Amendment 6

Proposal for a directive — amending act

Proposal for a directive — amending act

Recital 10

Recital 10

| (10) | In this context, this rule should be applied to immovable property that is supplied to the taxable person and important services relating to the property supplied. These situations account for the most significant cases, given the value and economic lifetime of such property and the fact that mixed use of this type of property is a common practice. |
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(10)

In this context, this rule should be applied to immovable property that is supplied to the taxable person and important services relating to the property supplied. These situations account for the most significant cases, given the value and economic lifetime of such property and the fact that mixed use of this type of property is a common practice.

These

| (10) | In this context, this rule should be applied to immovable property that is supplied to the taxable person and important services relating to the property supplied
  , which, by virtue of their economic value, can be assimilated to the acquisition of immovable property. Those situations account for the most significant cases, given the value and economic lifetime of such property and the fact that mixed use of this type of property is a common practice.
  Conversely, minor repairs or improvements that are of limited economic significance should be excluded from the scope of this Directive. |
| --- | --- |

(10)

In this context, this rule should be applied to immovable property that is supplied to the taxable person and important services relating to the property supplied
  , which, by virtue of their economic value, can be assimilated to the acquisition of immovable property. Those situations account for the most significant cases, given the value and economic lifetime of such property and the fact that mixed use of this type of property is a common practice.
  Conversely, minor repairs or improvements that are of limited economic significance should be excluded from the scope of this Directive.

, which, by virtue of their economic value, can be assimilated to the acquisition of immovable property.

Conversely, minor repairs or improvements that are of limited economic significance should be excluded from the scope of this Directive.

Amendment 7

Amendment 7

Proposal for a directive — amending act

Proposal for a directive — amending act

Article 1 — point 3a (new)

Article 1 — point 3a (new)

Directive 2006/112/EC

Directive 2006/112/EC

Title V — Chapter 1 — Section 4 — title

Title V — Chapter 1 — Section 4 — title

| (3a) | In Title V, Chapter 1, Section 4, the title shall be replaced by the following:


  Supply of goods through transmission or distribution networks. |
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(3a)

(3a)

In Title V, Chapter 1, Section 4, the title shall be replaced by the following:

Supply of goods through transmission or distribution networks.

Supply of goods through transmission or

networks

Amendment 8

Amendment 8

Proposal for a directive — amending act

Proposal for a directive — amending act

Article 1 — point 4

Article 1 — point 4

Directive 2006/112/EC

Directive 2006/112/EC

Article 38 — paragraph 1

Article 38 — paragraph 1

1.   In the case of the supply of gas by pipeline or by vessel for transporting natural gas, electricity and heat or refrigeration supplied by heat or refrigeration networks to a taxable dealer, the place of supply shall be deemed to be the place where that taxable dealer has established his business or has a fixed establishment for which the goods are supplied or, in the absence of such a place of business or fixed establishment, the place where he has his permanent address or usually resides.

1.   In the case of the supply of gas by pipeline or by vessel for transporting natural gas
  between pipelines
  , electricity and heat or refrigeration supplied by heat or refrigeration networks to a taxable dealer, the place of supply shall be deemed to be the place where that taxable dealer has established his business or has a fixed establishment for which the goods are supplied or, in the absence of such a place of business or fixed establishment, the place where he has his permanent address or usually resides.

between pipelines

Amendment 9

Amendment 9

Proposal for a directive — amending act

Proposal for a directive — amending act

Article 1 — point 4

Article 1 — point 4

Directive 2006/112/EC

Directive 2006/112/EC

Article 39 — paragraph 1

Article 39 — paragraph 1

In the case of the supply of natural gas by pipeline or by vessel for transporting natural gas, electricity and heat or refrigeration, where such a supply is not covered by Article 38, the place of supply shall be deemed to be the place where the customer effectively uses and consumes the goods.

In the case of the supply of natural gas by pipeline or by vessel for transporting natural gas
  between pipelines
  , electricity and heat or refrigeration, where such a supply is not covered by Article 38, the place of supply shall be deemed to be the place where the customer effectively uses and consumes the goods.

between pipelines

Amendment 10

Amendment 10

Proposal for a directive — amending act

Proposal for a directive — amending act

Article 1 — point 11

Article 1 — point 11

Directive 2006/112/EC

Directive 2006/112/EC

Article 168a — paragraph 1

Article 168a — paragraph 1

In the event of acquisition, construction, renovation or substantial transformation of immovable property, the initial exercise of the right of deduction arising when the tax becomes chargeable shall be limited to the proportion of the property's effective use for transactions giving rise to a right of deduction.

In the event of acquisition, construction, renovation or substantial transformation of immovable property, the initial exercise of the right of deduction arising when the tax becomes chargeable shall be limited to the proportion of the property's effective use for transactions giving rise to a right of deduction.
  Minor repairs or improvements shall be excluded from the scope of this provision.

Minor repairs or improvements shall be excluded from the scope of this provision.

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(1)  

  OJ L 176, 15.7.2003, p. 57.

1

OJ L 176, 15.7.2003, p. 57.

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