1989R1553 — EN — 21.05.1999 — 001.001 — 1
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►B COUNCIL REGULATION (EEC,EURATOM) No 1553/89
of 29 May 1989
on the definitive uniform arrangements for the collection of own resources accruing from value
added tax
(OJ L 155, 7.6.1989, p. 9)
Amended by:
Official Journal
No page date
►M1Council Regulation (EC, Euratom) No 1026/1999 of 10 May 1999 L 126 1 20.5.1999
NB: This consolidated version contains references to the European unit of account and/or the ecu, which from 1 January 1999
should be understood as references to the euro — Council Regulation (EEC) No 3308/80 (OJ L 345, 20.12.1980, p. 1) andCouncil Regulation (EC) No 1103/97 (OJ L 162, 19.6.1997, p. 1).
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COUNCIL REGULATION (EEC,EURATOM) No 1553/89
of 29 May 1989
on the definitive uniform arrangements for the collection of own
resources accruing from value added tax
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Havingreg ard to the Treaty establishingthe European EconomicCommunity, and in particular Article 209 thereof,
Having regard to the Treaty establishing the European Atomic Energy
Community, and in particular Article 183 thereof,
Havingreg ard to Council Decision (EEC, Euratom) 88/376 of 24 June
1988 on the Communities’ own resources(
1), and in particular Article 8
(2) thereof,
Havingreg ard to the proposal from the Commission(2),
Havingreg ard to the opinion of the European Parliament(3),
Havingreg ard to the opinion of the Court of Auditors(4),
Whereas by virtue of Article 14 thereof, Council Regulation (EEC,
Euratom, ECSC) No 2892/77 of 19 December 1977 implementinginrespect of own resources accruingfrom value added tax the Decision of21 April 1970 on the replacement of financial contributions fromMember States by the Communities’ own resources(
5) as last amended
by Regulation (ECSC, EEC, Euratom) No 3735/85 (6), applies for a
transitional period endingon 31 December 1988;
Whereas the provisions relatingto the definitive uniform arrang ements
for collectingresources from value added tax, hereinafter referred to as‘VAT resources' and the detailed rules for giving effect to thesearrangements are to apply from 1 January 1989;
Whereas the revenue method should be chosen as the sole definitive
method for determiningthe VAT resources base since this method isreliable and already applied by most Member States;
Whereas the provisions of Regulation (EEC, Euratom, ECSC) No 2892/
77 may be retained unless they are no longer necessary or need to beamended in the light of experience acquired;
Whereas the experience acquired in implementingthe procedures for
correctingthe statements has shown the need to clarify the scopethereof, stipulatingthat it is g enerally applicable to all corrections;
Whereas Member States must provide the Commission with information
concerningthe procedures which they apply for reg isteringtaxablepersons and determiningand collectingVAT and on the modalities andresults of their VAT control systems; whereas the Commission shouldconsider, together with the Member State concerned, whether improve-ments to these procedures can be contemplated with a view toimprovingtheir effectiveness; whereas the Commission should producea report every three years on the procedures applied in the MemberStates and on any improvements contemplated;
Consideringthe powers of the Court of Auditors pursuant to Article
206a of the EEC Treaty and Article 180a of the EAEC Treaty,
(1) OJ No L 185, 15. 7. 1988, p. 24.
(2) OJ No C 128, 17. 5. 1988, p. 4 and OJ No C 15, 19. 1. 1989, p. 11.
(3) OJ No C 309, 5. 12. 1988, p. 30.
(4) OJ No C 191, 20. 7. 1988, p. 3.
(5) OJ No L 336, 27. 2. 1977, p. 8.
(6) OJ No L 356, 31. 12. 1985, p. 1.
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HAS ADOPTED THIS REGULATION:
TITLE I
General provisions
Article 1
VAT resources shall be calculated by applyingthe uniform rate, set in
accordance with Decision 88/376/EEC, Euratom, to the base determinedin accordance with this Regulation.
TITLE II
Scope
Article 2
1. The VAT resources base shall be determined from the taxable
transactions referred to in Article 2 of Council Directive 77/388/EEC of17 May 1977 on the harmonization of the laws of the Member Statesrelatingto turnover taxes — Common system of value added tax:uniform basis of assessment(
1) as last amended by Decision 84/
386/EEC (2), with the exception of transactions exempted under Articles
13 to 16 of that Directive.
2. For the purposes of applyingparag raph 1, the followingshall be
taken into account for determiningVAT resources:
— transactions which, in accordance with Article 28 (2) of Directive
77/388/EEC, are subject to exemption with refund of the tax paid atthe precedingstag e,
— transactions which Member States continue to subject to tax
pursuant to Article 28 (3) (a) of Directive 77/388/EEC,
— transactions which Member States continue to exempt pursuant to
Article 28 (3) (b) of Directive 77/388/EEC,
— transactions which are taxed under the right of option granted to
taxable persons by Member States pursuant to Article 28 (3) (c) ofDirective 77/388/EEC.
3. By way of derogation from paragraph 1, Member States shall have
the option of leavingout of account, for the purpose of determiningVAT resources, the transactions of taxable persons whose annual turn-over, determined in accordance with the rules laid down in Article 24(4) of Directive 77/388/EEC, does not exceed ECU 10 000 convertedinto national currency at the average rate for the financial yearconcerned; Member States may round upwards or downwards, by up to10 %, the amounts which result from the conversion.
TITLE III
Method of calculation
Article 3
For a given calendar year, and without prejudice to Articles 5 and 6, the
VAT resources base shall be calculated by dividingthe total net VATrevenue collected by a Member State duringthat year by the rate atwhich VAT is levied duringthat same year.
If more than one VAT rate is applied in a Member State, the VAT
resources base shall be calculated by dividingthe total net VAT revenuecollected by the weighted average rate of VAT. In this case the MemberState shall calculate the weighted average rate, to four decimal places,by the common method defined in Article 4. This weighted average rateshall be expressed as a percentage.
(1) OJ No L 145, 13. 6. 1977, p. 1.
(2) OJ No L 208, 3. 9. 1984, p. 58.
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Article 4
1. In order to calculate the weighting of the various rates as referred
to in Article 3, the Member State shall break down, by VAT rateapplied, all transactions which are taxable under its national legislationand which do not entitle the customer to deduction of VAT, accountbeingtaken of Article 17 of Directive 77/388/EEC, and consumption onthe farm by flat-rate farmers and their direct sales to final consumers.
The VAT rates used for the purposes of such calculation shall be those
which, in accordance with paragraph 7, affect the VAT revenuecollected duringthe year in question.
Transactions which are subject, pursuant to Article 28 (2) of Directive
77/388/EEC, to exemption with refund of the tax paid at the precedingstage shall be regarded as taxable transactions subject to a zero rate.
2. The breakdown by rate of VAT shall be applied to the following
categories, if subject to non-deductible VAT:
— final consumption of private households, includingconsumption on
the farm by flat-rate farmers and their direct sales to finalconsumers,
— intermediate consumption of private non-profit institutions and
general government,
— intermediate consumption of other sectors,— gross fixed capital formation of private non-profit institutions and
general government,
— gross fixed capital formation of other sectors,— improved and unimproved buildingland, as defined in Article 4 (3)
(b) of Directive 77/388/EEC,
— transactions involving gold other than gold for industrial use
carried out in the territory referred to in Article 3 of Directive 77/
388/EEC in respect of the Member State concerned.
3. For the purposes of the breakdown of final consumption,
consumption on the farm by flat-rate farmers and their direct sales tofinal consumers shall be subject to a rate equivalent to the charge oninputs.
4. The breakdown of transactions by statistical category shall be
effected by means of data taken from national accounts prepared inaccordance with the European System of Integrated Economic Accounts(ESA). In order to calculate the VAT own resources base for any givenfinancial year, reference shall be made to the national accounts relatingto the last year but one before that financial year.
A Member State may be authorized, in accordance with the procedure
provided for in Article 13, to use data relatingto another year, whichmay not be earlier than the fifth year before the financial year inquestion.
5. For the purpose of identifyingtransactions subject to non-deduct-
ible VAT and effectingthe breakdwon by rate of VAT, Member Statesmay refer to data taken from sources complementary to the ESA andcapable of beingadapted thereto, that is, is the first instance, frominternal national accounts if they provide the necessary breakdown, or,if not, from any other appropriate source.
6. In order to determine the weighting of each rate, Member States
shall calculate the relationship between the value of the transactions towhich that rate applies and the aggregate value of all transactions.
7. Should a Member State amend the VAT rate applicable to all or
some transactions or the tax treatment for certain transactions in such away as to affect the VAT revenue collected, it shall calculate a newweighted average rate. The new weighted average rate shall be appliedto the revenue derived from application of the amended rate or taxtreatment.
By way of derogation from the first subparagraph, the Member State
may calculate a single weighted average rate. To this end, transactionsin respect of which the rate or treatment has been changed shall be
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allocated to the old and new rates or to the old and new treatment pro
rata temporis , with account beingtaken of the averag e period of time
elapsingbetween entry into force of the new rate or treatment and thecollection of revenue resultingtherefrom, calculated over the entire yearin question. This average period may be rounded off to the full month.
Article 5
1. For the purposes of applyingArticle 3, Member States shall, if
appropriate, add to the revenue collected an amount correspondingtothe total VAT which would have been collected but for the applicationof a scheme of graduated tax relief under Article 24 (2) of Directive77/388/EEC.
2. The revenue collected by a Member State shall be corrected if the
flat-rate compensation percentage fixed pursuant to Article 25 (3) ofDirective 77/388/EEC applicable to transactions carried out by flat-ratefarmers does not correspond to the percentage of the input VAT chargewhich was actually applied to such transactions with the exception ofthat relatingto consumption on the farm and direct sales to finalconsumers duringthe year in question. The amount of the correctionshall be equal to the difference between the two percentages.
Article 6
1. For the purposes of applyingArticle 2 (1) to transactions carried
out by taxable persons whose annual turnover exceeds ECU 10 000 butwho are exempted under Article 24 (2) of Directive 77/388/EEC and tothe cases referred to in paragraph 2, Member States shall determine theVAT resources base from the returns to be made by taxable persons inaccordance with Article 22 of that Directive or, where there is not returnor the return does not contain the necessary information, from appro-priate data such as other tax returns, professional accounts or completestatistical series.
2. For the purposes of applyingthe second, third and fourth indents
of Article 2 (2):
— with regard to the transactions listed in Annex E to Directive 77/
388/EEC which Member States continue to tax pursuant to Article28 (3) (a) of that Directive, Member States shall calculate the VATresources base as if these transactions were exempted;
— with regard to the transactions listed in Annex F to Directive 77/
388/EEC which Member States continue to exempt pursuant toArticle 28 (3) (b) of that Directive, Member States shall calculatethe VAT resources base as if these transactions were taxed;
— with regard to the transactions referred to in paragraph 1 (a) of
Annex G to Directive 77/388/EEC which are taxed under the optiongiven to taxable persons by Member States pursuant to Article 28(3) (c) of that Directive, Member States shall calculate the VATresources base as if these transactions were exempted.
3. Under the procedure provided for in Article 13, a Member State
may be authorized:
— either not to take into account in calculatingthe VAT resources
base:
(a) one or more of the categories of transactions listed in Annexes
E, F and G to Directive 77/388/EEC to which paragraph 2 ofthis Article applies;
(b) the amount correspondingto the tax which would have been
collected but for the application of a scheme of graduated taxrelief under Article 24 (2) of Directive 77/388/EEC;
— or to calculate the VAT resources base in the cases referred to in (a)
and (b) by usingapproximate estimates,
where precise calculation of the VAT resources base in these cases
would be likely to involve administrative burdens which would beunjustified in relation to the effect of the transactions in question on thetotal VAT resources base of that Member State.
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4. Where a Member State makes use of the second subparagraph of
Article 17 (6) and of Article 17 (7) of Directive 77/388/EEC to restrictthe exercise of the right to deduct, the VAT own resources base may bedetermined as if the exercise of the right to deduct had not beenrestricted.
The precedingsubparag raph shall apply, in relation to the second
subparagraph of Article 17 (6) of Directive 77/388/EEC, only in respectof the purchase of petroleum products and passenger cars used forbusiness purposes, and of expenditure relatingto the leasingand hiringand also the maintenance and repair of such cars.
5. Where tax refunds are granted by a Member State pursuant to
Article 6 of Council Directive 69/169/EEC of 28 May 1969 on theharmonization of provisions laid down by law, regulation or adminis-trative action relatingto exemption from turnover tax and excise dutyon imports in international travel(
1) as last amended by Directive
89/194/EEC (2), the taxable amount of the transactions which gave rise
to these refunds shall, if necessary, be subtracted from the VATresources base.
TITLE IV
Provisions relating to accounting and making available of own resources
Article 7
1. Before 31 July the Member States shall send the Commission a
statement of the total amount of the VAT resources base for theprevious calendar year, calculated in accordance with Article 3, towhich the rate referred to in Article 1 is to be applied.
2. The statement shall contain all the data used to determine the base
which are required for the control referred to in Article 11. It shallindicate separately the base resultingfrom the transactions referred to inArticle 5 and Article 6 (1) to (4).
3. The data to be used to establish the base shall be the most recent
data available when the statement is produced.
Article 8
Member States shall send the Commission by 15 April each year an
estimate of the VAT resources base for the followingfinancial year.
Article 9
1. Any corrections, for whatever reason, to the statements referred to
in Article 7 (1) for previous financial years shall be made in agreementbetween the Commission and the Member State concerned.
If the Member State does not give its agreement, the Commission, after
re-examiningthe matter, shall take whatever measures it considersnecessary for correct application of this Regulation.
All corrections shall be incorporated in aggregate statements at 31 July,
which shall amend the previous statements for the financial yearsconcerned.
2. No further corrections may be made to the annual statement
referred to in Article 7 (1) after 31 July of the fourth year followingthefinancial year concerned, unless they concern points previously notifiedeither by the Commission or by the Member State concerned.
(1) OJ No L 133, 4. 6. 1969, p. 6.
(2) OJ No L 73, 17. 3. 1989, p. 47.
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TITLE V
Provisions relating to control
Article 10
1. Member States shall inform the Commission by 30 April of each
financial year of the solutions and modifications thereto that theypropose to adopt in order to determine the VAT resources base for eachof the categories of transaction referred to in Article 5 and Article 6 (1)to (4), indicating, where applicable, the nature of the data which theyconsider appropriate and an estimate of the value of the base for each ofthese categories of transactions.
Within 30 days the Commission shall send the other Member States the
information referred to above which it has received from each MemberState.
2. The Commission shall examine, in accordance with the procedure
laid down in Article 13, the proposed solutions and modifications.
Article 11
1. As regards VAT resources, the Commission’s controls shall be
carried out with the competent authorities in the Member States. Duringthese controls, the Commission shall ensure, in particular, that theoperations to centralize the assessment base and to determine theweighted average rate referred to in Articles 3 and 4 and the total netvalue added tax collected have been performed correctly; it shall alsoascertain that the data used where appropriate and that the calculationsmade to determine the amount of VAT resources resultingfrom thetransactions referred to in Article 5 and Article 6 (1) to (4) comply withthis Regulation.
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3. Followingthe controls referred to in parag raph 1, the annualstatement for a given financial year shall be corrected as specified inArticle 9.
Article 12
1. The Member States shall provide the Commission with informa-
tion concerningthe procedures which they apply for reg isteringtaxablepersons and determiningand collectingVAT and on the modalities andresults of their VAT control systems.
2. The Commission shall consider, together with the Member State
concerned, whether improvements to these procedures can be contem-plated with a view to improvingtheir effectiveness.
3. The Commission shall produce a report every three years on the
procedures applied in the Member States and on any improvementscontemplated.
The Commission shall submit that report to Parliament and the Council
for the first time by 31 December 1991.
Article 13
1. The committee referred to in Article 20 of Regulation (EEC,
Euratom, ECSC) No 1552/89 (
1), hereinafter called ‘the committee',
shall regularly examine, on the initiative of the Commission or at therequest of a Member State, problems arisingout of application of thisRegulation.
(1) See page 1 of this Official Journal.
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2. Member States applyingfor the authorization provided for inArticle 4 (4) or Article 6 (3) shall refer their application to the Commis-sion as soon as possible and not later than 30 April of the financial yearfrom which the authorization is to apply.
The Commission representative shall submit a draft decision to the
committee as soon as possible and not later than 31 December of thefinancial year.
3. On the initiative of the Commission or at the request of a Member
State, the committee shall examine the solutions referred to in Article10.
If the committee’s examination reveals differences of opinion as to the
solutions envisaged, the Commission representative shall submit a draftdecision to the committee as soon as possible and not later than 31December of the financial year from which the solution is to apply.
4. The committee shall deliver its opinion on the draft decisions
referred to in paragraphs 2 and 3 within a period which the chairmanmay lay down accordingto the urg ency of the matter involved, ifnecessary by takinga vote.
The opinion shall be recorded in the minutes; in addition, each Member
State shall have the right to ask to have its position recorded in theminutes.
The Commission shall take the utmost account of the opinion delivered
by the committee. It shall inform the committee of the manner in whichits opinion has been taken into account.
5. No later than 60 days after the committee has delivered its
opinion, the Commission shall adopt a Decision which it shall commu-nicate to the Member States.
TITLE VI
Final provisions
Article 14
This Regulation shall enter into force on the day following its publica-
tion in the Official Journal of the European Communities .
It shall apply from 1 January 1989.It shall not apply, however, to the production or the correction of
statements of the VAT resources base for years before 1989 which havebeen produced in accordance with Regulation (EEC, Euratom, ECSC)No 2892/77, which remains in force in respect of the statementsconcerned.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.