1997D0375 — EN — 30.12.2003 — 002.001 — 1
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►B COUNCILDECISION
of9June1997
authorizing the United Kingdom to apply an optional measure derogating from Article 17 of the
sixth Directive (77/388/EEC) on the harmonization of the Laws of the Member States relating to
turnovertaxes
(97/375/EC)
(OJ L 158, 17.6.1997, p. 43)
Amended by:
Official Journal
No page date
►M1Council Decision 2000/435/EC of 29 June 2000 L 172 24 12.7.2000
►M2Council Decision 2003/909/EC of 22 December 2003 L 342 49 30.12.2003
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COUNCILDECISION
of9June1997
authorizing the United Kingdom to apply an optional measure
derogating from Article 17 of the sixth Directive (77/388/EEC) onthe harmonization of the Laws of the Member States relating to
turnovertaxes
(97/375/EC)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to the Sixth Council Directive (77/388/EEC) of 17 May
1977 on the harmonization of the lawsof the Member Statesrelating toturnover taxes — Common System of value added tax: uniform basis
of assessment (
1), and in particular Article 27 thereof,
Having regard to the proposal from the Commission,Whereas, under the terms of Article 27 (1) of Directive 77/388/EEC,
the Council, acting unanimously on a proposal from the Commission,
may authorize any Member State to introduce special measure for dero-
gation from the provisions of that Directive in order to simplify theprocedure for charging the tax or to prevent certain typesof taxevasion or avoidance;
Whereasthe United Kingdom wasauthorized, by Decis ion 93/111/
EEC (
2), in accordance with the procedure laid down in Article 27 (1)
to (4) of Directive 77/388/EEC, to apply a measure derogating fromArticle 17 (1) of the said Directive until 31 December 1996;
Whereasthe United Kingdom, by meansof a letter regis tered by the
Commission on 19 November 1996, requested authorization to extend
the said derogation;
Whereasthe other Member Stateswere informed on 18 December
1996 of the United Kingdom'sreques t;
Whereas this special measure derogating from Article 17 (1) of Direc-
tive 77/388/EEC forms part of an optional system of taxation for firmswith an annual turnover not higher than £ 400 000 based on the thirdsubparagraph of Article 10 (2) of the said Directive, which permitspayment of tax to be deferred until receipt of the price;
Whereas the United Kingdom seeks authority to increase the turnover
ceiling from £ 350 000 to £ 400 000 to take account of inflation;
Whereasa derogation can be accepted in view of the number of firms
that already have opted for this simplified scheme and the limited dura-tion of thisextens ion;
Whereasthe derogation in ques tion doesnot have a negative effect on
the own resources of the European Communities accruing from VAT;
Whereas the Commission adopted on 10 July 1996 a work programme
based on a step-by-step approach for progressing towards a new
common system of VAT;
Whereas the last package of proposals is to be put forward by mid-
1999 and, in order to permit an evaluation of the coherence of thederogation with the global approach of the new common VAT system,the authorization isgranted until 31 December 1999,1997D0375 — EN — 30.12.2003 — 002.001 — 2
(1) OJ No L 145, 13. 6. 1977, p. 1. Directive aslas t amended by Directive 96/
95/EC (OJ No L 338, 28. 12. 1996, p. 89).
(2) OJ No L 43, 20. 2. 1993, p. 46.
▼B
HAS ADOPTED THIS DECISION:
Article 1
By way of derogation from the provisions of Article 17(1) of Sixth
Directive 77/388/EEC, the United Kingdom ishereby authoris ed, until
31 December 2006, to provide, within an optional scheme, that enter-
prises with an annual turnover not higher than GBP 660 000 mustpostpone the right of deduction of tax until it has been paid to thesupplier.
Article 2
This Decision is addressed to the United Kingdom.1997D0375 — EN — 30.12.2003 — 002.001 — 3
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