77/388/EEC - - - I
1This document is meant purely as a documentation tool and the institutions do not assume any liability for its con-
tents
SIXTH COUNCIL DIRECTIVE
of 17 May 1977
on the harmonization of the laws of the Member States relating to turnover taxes — Common
system of value added tax: uniform basis of assessment
(77/388/EEC)
(OJ No L 145, 23. 6. 1977, p. 1)
Amended by:
Official Journal
No page date
Eleventh Council Directive of 26 March 1980 (80/368/EEC) L 90 41 3. 4. 1980
T enth Council Directive of 31July 1984 (84/386/EEC) L 208 58 3. 8. 1984Eighteenth Council Directive of 18 July 1989 (89/465/EEC) L 226 21 3. 8. 1989Council Directive of 16 December 1991 (91/680/EEC) L 376 1 31. 12. 1991Council Directive 92/77/EEC of 19 October 1992 L 316 1 31. 10. 1992Council Directive 92/111/EEC of 14 December 1992 L 384 47 30. 12. 1992Council Directive 94/4/EC of 14 February 1994 L 60 14 3. 3. 1994Council Directive 94/5/EC of 14 February 1994 L 60 16 3. 3. 1994Council Directive 94/76/EC of 22 December 1994 L 365 53 31. 12. 1994Council Directive 95/7/EC of 10 April 1995 L 102 18 5. 5. 1995Council Directive 96/42/EC of 25 June 1996 L 170 34 9. 7. 1996Council Directive 96/95/EC of 20 December 1996 L 338 89 28. 12. 1996
Amended
by:
A1 Act of Accession of Greece L 291 95 19. 11. 1979
A2 Act of Accession of Spain and Portugal L 302 167 15. 11. 1985
Amended by:
C1 Corrigendum, OJ No L 272, 17. 9. 1992, p. 72 (91/680/EEC)
C2 Corrigendum, OJ No L 197, 6. 8. 1993, p. 57 (92/111/EEC)
77/388/EEC---I
ISIXTHCOUNCILDIRECTIVE
of17May1977
ontheharmonization of the laws of the Member States relating to turnover taxes — Common
system of value added tax: uniform basis of assessment
(77/388/EEC)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the T reaty establishing the EuropeanEconomic Community, and in particular Articles 99 and
100 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parlia-
ment (
1),
Having regard to the opinion of the Economic and Social
Committee (2);
Whereas all Member States have adopted a system of
value added tax in accordance with the first and secondCouncil Directives of 11 April 1967 on the harmonization
of the laws of the Member States realting (SIC! relating)
to turnover taxes (
3);
Whereas the Decision of 21 April 1970 on the replacement
of financial contributions from Member States by the
Communities’ own resources (4) provides that the budget
of the Communities shall, irrespective of other revenue, be
financed entirely from the Communities’ own resources;
whereas these resources are to include those accruing from
value added tax and obtained by applying a common rate
of tax on a basis of assessment determined in a uniform
manner according to Community rules;
Whereas further progress should be made in the effective
removal of restrictions on the movement of persons, goods,
services and capital and the integration of national econ-
omies;
Whereas account should be taken of the objective of abol-
ishing the imposition of tax on the importation and the
remission of tax on exportation in trade between Member
States; whereas it should be ensured that the common sys-
tem of turnover taxes is non-discriminatory as regards the
origin of goods and services, so that a common market
permitting fair competition and resembling a real internal
market may ultimately be achieved;
Whereas, to enhance the non-discriminatory nature of the
tax, the term ’taxable person’ must be clarified to enable
the Member States to extend it to cover persons who oc-
casionally carry out certain transactions;
Whereas the term ‘taxable transaction’ has led to diffi-
culties, in particular as regards transactions treated as tax-
able transactions; whereas these concepts must be clarified;
(1) OJ No C 40, 8. 4. 1974, p. 25.
(2) OJ No C 139, 12. 11. 1974, p. 15.
(3) OJ No 71, 14. 4. 1967, p. 1301/67.
(4) OJ No L 94, 28. 4. 1970, p. 19.
77/388/EEC - - - I
IIWhereas the determination of the place where taxable
transactions are effected has been the subject of conflicts
concerning jurisdiction as between Member States, in par-
t i c u l a ra sr e g a r d ss u p p l i e so fg o o d sf o ra s s e m b l ya n dt h e
supply of services; whereas although the place where a
supply of services is effected should in principle be defined
as the place where the person supplying the services has
his principal place of business, that place should be de-
fined as being in the country of the person to whom the
services are supplied, in particular in the case of certain
services supplied between taxable persons where the cost
of the services is included in the price of the goods;
Whereas the concepts of chargeable event and of the
charge to tax must be harmonized if the introduction and
any subsequent alterations of the Community rate are to
become operative at the same time in all Member States;
Whereas the taxable base must be harmonized so that the
application of the Community rate to taxable transactions
leads to comparable results in all the Member States;
Whereas the rates applied by Member States must be such
as to allow the normal deduction of the tax applied at the
preceding stage;
Whereas a common list of exemptions should be drawn up
so that the Communities own resources may be collected
in a uniform manner in all the Member States;
Whereas the rules governing deductions should be harmon-
ized to the extent that they affect the actual amounts col-
lected; whereas the deductible proportion should be calcu-
lated in a similar manner in all the Member States;
Whereas it should be specified which persons are liable to
pay tax, in particular as regards services supplied by a per-
son established in another country;
Whereas the obligations of taxpayers must be harmonized
as far as possible so as to ensure the necessary safeguards
for the collection of taxes in a uniform manner in all the
Member States; whereas taxpayers should, in particular,
make a periodic aggregate return of their transactions, re-
lating to both inputs and outputs where this appears
necessary for establishing and monitoring the basis of
assessment of own resources;
Whereas Member States should nevertheless be able to re-
tain their special schemes for small undertakings, in ac-
cordance with common provisions, and with a view to
closer harmonization; whereas Member States should re-
main free to apply a special scheme involving flat rate re-
bates of input value added tax to farmers not covered bynormal schemes; whereas the basic principles of this
scheme should be established and a common method
adopted for calculating the value added of these farmers
for the purposes of collecting own resources;
77/388/EEC - - - I
IIIWhereas the uniform application of the provisions of this
Directive should be ensured; whereas to this end a Com-
munity procedure for consultation should be laid down;
whereas the setting up of a V alue Added T ax Committee
would enable the Member States and the Commission to
cooperate closely;
Whereas Member States should be able, within certain li-
mits and subject to certain conditions, to take or retain
special measures derogating from this Directive in order to
simplify the levying of tax or to avoid fraud or tax avoid-
ance;
Whereas it might appear appropriate to authorize Member
States to conclude with non-member countries or interna-
tional organizations agreements containing derogations
from this Directive;
Whereas it is vital to provide for a transitional period to
allow national laws in specified fields to be graduallyadapted,
HAS ADOPTED THIS DIRECTIVE:
77/388/EEC - - - I
1TITLE I
INTRODUCTORY PROVISIONS
Article 1
Member States shall modify their present value added tax
systems in accordance with the following Articles.
They shall adopt the necessary laws, regulations and ad-
ministrative provisions so that the systems as modified
enter into force at the earliest opportunity and by 1 Jan-
uary 1978 at the latest.
TITLE II
SCOPE
Article 2
T h ef o l l o w i n gs h a l lb es u b j e c tt ov a l u ea d d e dt a x :
1. the supply of goods or services effected for consider-
ation within the territory of the country by a taxable
person acting as such;
2. the importation of goods.
TITLE III
TERRITORIAL APPLICATION
Article 3
(1) For the purposes of this Directive:
— ‘territory of a Member State’ shall mean the territory
of the country as defined in respect of each Member
State in paragraphs 2 and 3,
— ‘Community’ and ‘territory of the Community’ shall
mean the territory of the Member States as defined in
respect of each Member State in paragraphs 2 and 3,
— ‘third territory’ and ‘third country’ shall mean any
territory other than those defined in paragraphs 2 and
3 as the territory of a Member State.
(2) For the purposes of this Directive, the ‘territory of
the country ’shall be the area of application of the T reaty
establishing the European Economic Community as de-
fined in respect of each Member State in Article 227.
(3) The following territories of individual Member States
shall be excluded from the territory of the country:
— Federal Republic of Germany:
the Island of Heligoland,
the territory of Büsingen,
— Kingdom of Spain:
Ceuta,
Melilla,77/388/EEC
91/680/EEC
77/388/EEC - - - I
2— Republic of Italy:
Livigno,
Campione d’Italia,
the Italian wates (SIC! waters) of Lake Lugano.
The following territories of individual Member States shall
also be excluded from the territory of the country:
— Kingdom of Spain:
the Canary Islands,
—F r e n c h R e p u b l i c :
the overseas departments,
— Hellenic Republic
ΆγιοΌρος .
(4) By way of derogation from paragraph 1, in view of
the conventions and treaties which they have concluded re-
spectively with the French Republic and the United King-
dom of Great Britain and Northern Ireland, the Principal-
ity of Monaco and the Isle of Man shall not be treated forthe purposes of the application of this Directive as third
territories.
Member States shall take the measures necessary to ensure
that transactions originating in or intended for:
— the Principality of Monaco are treated as transactions
originating in or intended for the French Republic,
— the Isle of Man are treated as transactions originating
in or intended for the United Kingdom of Great Brit-
ain and Northern Ireland.
(5) If the Commission considers that the provisions laiddown in paragraphs 3 and 4 are no longer justified, par-
ticularly in terms of fair competition or own resources, it
shall submit appropriate proposals to the Council.
TITLE IV
TAXABLE PERSONS
Article 4
1. ‘T axable person’ shall mean any person who indepen-
dently carries out in any place any economic activity speci-
fied in paragraph 2, whatever the purpose or results of
that activity.91/680/EEC
92/111/EEC
91/680/EEC
77/388/EEC
77/388/EEC - - - I
32. The economic activities referred to in paragraph 1
shall comprise all activities of producers, traders and per-
sons supplying services including mining and agricultural
activities and activities of the professions. The exploitation
of tangible or intangible property for the purpose of ob-
taining income therefrom on a continuing basis shall also
be considered an economic activity.
3. Member States may also treat as a taxable person
anyone who carries out, on an occasional basis, a transac-
tion relating to the activities referred to in paragraph 2
and in particular one of the following:
(a) the supply before first occupation of buildings or
parts of buildings and the land on which they stand;
Member States may determine the conditions of ap-
plication of this criterion to transformations of build-
ings and the land on which they stand.
Member States may apply criteria other than that of
first occupation, such as the period elapsing between
the date of completion of the building and the date of
first supply or the period elapsing between the date of
first occupation and the date of subsequent supply,
provided that these periods do not exceed five years
and two years respectively.
‘A building’ shall be taken to mean any structure fixed
to or in the ground;
(b) the supply of building land.
’Building land’ shall mean any unimproved or im-
proved land defined as such by the Member States.
4. The use of the word ‘independently’ in paragraph 1
shall exclude employed and other persons from the tax in
so far as they are bound to an employer by a contract of
employment or by any other legal ties creating the rela-
tionship of employer and employee as regards working
conditions, remuneration and the employer’s liability.
Subject to the consultations provided for in Article 29,
each Member State may treat as a single taxable person
persons established in the territory of the country who,
while legally independent, are closely bound to one
another by financial, economic and organizational links.
5. States, regional and local government authorities and
other bodies governed by public law shall not be con-
sidered taxable persons in respect of the activities or trans-
actions in which they engage as public authorities, even
where they collect dues, fees, contributions or payments in
connection with these activities or transactions.77/388/EEC
77/388/EEC - - - I
4However, when they engage in such activities or transac-
tions, they shall be considered taxable persons in respect of
these activities or transactions where treatment as non-tax-
able persons would lead to significant distortions of com-
petition.
In any case, these bodies shall be considered taxable per-
sons in relation to the activities listed in Annex D, pro-
vided they are not carried out on such a small scale as to
be negligible.
Member States may consider activities of these bodies
which are exempt under Article 13 or 28 as activities
which they engage in as public authorities.
TITLE V
TAXABLE TRANSACTIONS
Article 5
Supply of goods
1. ‘Supply of goods’ shall mean the transfer of the right
to dispose of tangible property as owner.
2. Electric current, gas, heat, refrigeration and the like
shall be considered tangible property.
3. Member States may consider the following to be tan-
gible property:
(a) certain interest in immovable property;
(b) rights in rem giving the holder thereof a right of user
over immovable property;
(c) shares or interests equivalent to shares giving the
holder thereof de jure orde facto rights of ownership
or possession over immovable property or part there-
of.
4. The following shall also be considered supplies within
the meaning of paragraph 1:
(a) the transfer, by order made by or in the name of a
public authority or in pursuance of the law, of the
ownership of property against payment of compensa-
tion;
(b) the actual handing over of goods, pursuant to a con-
tract for the hire of goods for a certain period or for
the sale of goods on deferred terms, which provides
that in the normal course of events ownership shall
pass at the latest upon payment of the final instal-
ment;
(c) the transfer of goods pursuant to a contract under
which commission is payable on purchase or sale.
5. Member States may consider the handing over of cer-tain works of construction to be supplies within the mean-
ing of paragraph 1.77/388/EEC
95/7/EC
77/388/EEC - - - I
56. The application by a taxable person of goods forming
part of his business assets for his private use or that of his
staff, or the disposal thereof free of charge or more gen-
erally their application for purposes other than those of his
business, where the value added tax on the goods in ques-
tion or the component parts thereof was wholly or partly
deductible, shall be treated as supplies made for consider-
ation. However, applications for the giving of samples or
the making of gifts of small value for the purposes of the
taxable person’s business shall not be so treated.
7. Member States may treat as supplies made for con-
sideration:
(a) the application by a taxable person for the purposes
of his business of goods produced, constructed, ex-
tracted, processed, purchased or imported in the
course of such business, where the value added tax on
such goods, had they been acquired from another tax-able person, would not be wholly deductible;
(b) the application of goods by a taxable person for the
purposes of a non-taxable transaction, where the value
added tax on such goods became wholly or partly de-
ductible upon their acquisition or upon their applica-
tion in accordance with subparagraph (a);
(c) except in those cases mentioned in paragraph 8, the
retention of goods by a taxable person or his suc-
cessors when he ceases to carry out a taxable econ-
omic activity where the value added tax on such
goods became wholly or partly deductible upon their
acquisition or upon their application in accordance
with subparagraph (a).
8. In the event of a transfer, whether for consideration
or not or as a contribution to a company, of a totality of
assets or part thereof, Member States may consider that
no supply of goods has taken place and in that event the
recipient shall be treated as the successor to the transferor.
Where appropriate, Member States may take the necessary
measures to prevent distortion of competition in cases
where the recipient is not wholly liable to tax.
Article 6
Supply of services
1. ‘Supply of services’ shall mean any transaction which
does not constitute a supply of goods within the meaning
of Article 5.
Such transactions may include inter alia :
— assignments of intangible property whether or not it is
the subject of a document establishing title,
— obligations to refrain from an act or to tolerate an act
or situation,77/388/EEC
77/388/EEC - - - I
6— the performances of services in pursuance of an order
made by or in the name of a public authority or in
pursuance of the law.
2. The following shall be treated as supplies of services
for consideration:
(a) the use of goods forming part of the assets of a busi-
ness for the private use of the taxable person or of
his staff or more generally for purposes other than
t h o s eo fh i sb u s i n e s sw h e r et h ev a l u ea d d e dt a xo n
such goods is wholly or partly deductible;
(b) supplies of services carried out free of charge by the
taxable person for his own private use or that of his
staff or more generally for purposes other than those
of his business.
Member States may derogate from the provisions of this
paragraph provided that such derogation does not lead to
distortion of competition.
3. In order to prevent distortion of competition and sub-
ject to the consultations provided for in Article 29,
Member States may treat as a supply of services for con-
sideration the supply by a taxable person of a service for
the purposes of his undertaking where the value added tax
on such a service, had it been supplied by another taxable
person, would not be wholly deductible.
4 . W h e r eat a x a b l ep e r s o na c t i n gi nh i so w nn a m eb u t
on behalf of another takes part in a supply of services, he
shall be considered to have received and supplied those
services himself.
5. Article 5 (8) shall apply in like manner to the supply
of services.
Article 7
Imports
1. ‘Importation’ of goods shall mean:(a) the entry into the Community of goods which do not
fulfil the conditions laid down in Articles 9 and 10 of
the T reaty establishing the European Economic Com-
munity or, where the goods are covered by the T reaty
establishing the European Coal and Steel Community,
are not in free circulation;
(b) the entry into the Community of goods from a third
territory, other than the goods covered by (a).
2. The place of import of goods shall be the MemberState within the territory of which the goods are when they
enter the Community.77/388/EEC
91/680/EEC
92/111/EEC
91/680/EEC
77/388/EEC - - - I
73. Notwithstanding paragraph 2, where goods referred to
in paragraph 1 (a) are, on entry into the Community,
placed under one of the arrangements referred to in Ar-
t i c l e1 6( 1 )( B )( a ) ,( b ) ,( c )a n d (d), under arrangements
for temporary importation with total exemption from im-
port duty or under external transit arrangements, the place
of import of such goods shall be the Member State within
the territory of which they cease to be covered by those
arrangements.
Similarly, when goods referred to in paragraph 1 (b) areplaced, on entry into the Community, under one of the
procedures referred to in Article 33a (1) (b) or (c), the
place of import shall be the Member State within whose
territory this procedure ceases to apply.
TITLE VI
PLACE OF TAXABLE TRANSACTIONS
Article 8
Supply of goods
1. The place of supply of goods shall be deemed to be:
(a) in the case of goods dispatched or transported either
by the supplier or by the person to whom they are
supplied or by a third person: the place where the
goods are at the time when dispatch or transport to
the person to whom they are supplied begins. where
the goods are installed or assembled, with or without
a trial run, by or on behalf of the supplier, the place
of supply shall be deemed to be the place where the
goods are installed or assembled. In cases where the
installation or assembly is carried out in a Member
State other than, that of the supplier, the Member
State within the territory of which the installation or
assembly is carried out shall take any necessary steps
to avoid double taxation in that State;
(b) in the case of goods not dispatched or transported:
the place where the goods are when the supply takes
place.
(c) in the case of goods supplied on board ships, aircraft
or trains during the part of a transport of passengers
effected in the Community: at the point of the depar-
ture of the transport of passengers.
For the purposes of applying this provision:
— ‘part of a transport of passengers effected in the
Community ’shall mean the part of the transport
effected, without a stop in a third territory, be-
tween the point of departure and the point of
arrival of the transport of passengers,91/680/EEC
92/111/EEC
92/111/EEC
77/388/EEC
91/680/EEC
91/680/EEC
92/111/EEC
77/388/EEC - - - I
8— ‘the point of departure of the transport of pas-
sengers ’shall mean the first point of passenger
embarkation foreseen within the Community,
where relevant after a leg outside the Communi-
ty,
— ‘the point of arrival of the transport of passen-
gers ’shall mean the last point of disembarkation
of passengers foreseen within the Community of
passengers who embarked in the Community,
where relevant before a leg outside the Commu-
nity.
In the case of a return trip, the return leg shall be
considered to be a separate transport.
The Commission shall, by 30 June 1993 at the latest, sub-
mit to the Council a report accompanied, if necessary, by
appropriate proposals on the place of taxation of goods
supplied for consumption and services, including restaurantservices, provided for passengers on board ships, aircraft or
trains.
By 31 December 1993, after consulting the European Par-
liament, the Council shall take a unanimous decision on
the Commission proposal.
Until 31 December 1993, Member States may exempt or
continue to exempt goods supplied for consumption on
board whose place of taxation is determined in accordance
with the above provisions, with the right to deduct the val-
ue added tax paid at an earlier stage.
2. By way of derogation from paragraph 1 (a), wherethe place of departure of the consignment or transport of
goods is in a third territory, the place of supply by the
importer as defined in Article 21 (2) and the place of any
subsequent supplies shall be deemed to be within the
Member State of import of the goods.
Article 9
Supply of services
1. The place where a service is supplied shall be deemed
to be the place where the supplier has established his busi-
ness or has a fixed establishment from which the service is
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.
2. However:
(a) the place of the supply of services connected with im-
movable property, including the services of estate ag-
ents and experts, and of services for preparing and
coordinating construction works, such as the services
of architects and of firms providing on-site supervi-
sion, shall be the place where the property is situated;92/111/EEC
91/680/EEC
77/388/EEC
77/388/EEC - - - I
9(b) the place where transport services are supplied shall
be the place where transport takes place, having re-
gard to the distances covered;
(c) the place of the supply of services relating to:
— cultural, artistic, sporting, scientific, educational,
entertainment or similar activities, including the
activities of the organizers of such activities, and
where appropriate, the supply of ancillary ser-
vices,
— ancillary transport activities such as loading, un-
loading, handling and similar activities,
— valuations of movable tangible property,
— work on movable tangible property,
s h a l lb et h ep l a c ew h e r et h o s es e r v i c e sa r ep h y s i c a l l y
carried out;
(e) the place where the following services are supplied:
when performed for customers established outside the
Community or for taxable persons established in the
Community but not in the same country as the
supplier, shall be the place where the customer has
established his business or has a fixed establishment
to which the service is supplied or, in the absence of
such a place, the place where he has his permanent
address or usually resides:
— transfers and assignments of copyrights, patents,
licences, trade marks and similar rights,
— advertising services,
— services of consultants, engineers, consultancy
bureaux, lawyers, accountants and other similar
services, as well as data processing and the sup-
plying of information,
— obligations to refrain from pursuing or exercis-
ing, in whole or in part, a business activity or a
right referred to in this point (e),
— banking, financial and insurance transactions in-
cluding reinsurance, with the exception of the
hire of safes,
— the supply of staff,
— the services of agents who act in the name and
for the account of another, when they procure
for their principal the services referred to in this
point (e).77/388/EEC
84/386/EEC - - - deleted
77/388/EEC
77/388/EEC - - - I
10— the hiring out of movable tangible property, with
the exception of all forms of transport.
3. In order to avoid double taxation, non-taxation or thedistortion of competition the Member States may, with re-
gard to the supply of services referred to in 2 (e) and
the
hiring out of forms of transport consider:
(a) the place of supply of services, which under this Ar-
ticle would be situated within the territory of the
country, as being situated outside the Community
where the effective use and enjoyment of the services
take place outside the Community;
(b) the place of supply of services, which under this Ar-
ticle would be situated outside the Community, as
being within the territory of the country where the
e f f e c t i v eu s ea n de n j o y m e n to ft h es e r v i c e st a k ep l a c e
within the territory of the country.
TITLE VII
CHARGEABLE EVENT AND CHARGEABILITY OF TAX
Article 10
1. (a) ‘Chargeable event’ shall mean the occurrence by
virtue of which the legal conditions necessary for
tax to become chargeable are fulfilled.
(b) The tax becomes ‘chargeable’ when the tax au-
thority becomes entitled under the law at a given
moment to claim the tax from the person liable
to pay, notwithstanding that the time of payment
may be deferred.
2. The chargeable event shall occur and the tax shall be-
come chargeable when the goods are delivered or the ser-
vices are performed. Deliveries of goods other than those
referred to in Article 5 (4) (b) and supplies of services
which give rise to successive statements of account or pay-
ments shall be regarded as being completed at the time
when the periods to which such statements of account or
payments pertain expire.
However, where a payment is to be made on account be-
fore the goods are delivered or the services are performed,
the tax shall become chargeable on receipt of the payment
and on the amount received.
By way of derogation from the above provisions, Member
States may provide that the tax shall become chargeable,
for certain transactions or for certain categories of taxable
person, either:
— n ol a t e rt h a nt h ei s s u eo ft h ei n v o i c eo ro ft h ed o c u -
ment serving as invoice, or84/386/EEC
77/388/EEC
84/386/EEC
77/388/EEC - - - I
11— no later than receipt of the price, or
— where an invoice or document serving as invoice is
not issued, or is issued late, within a specified period
from the date of the chargeable event.
3. The chargeable event shall occur and the tax shall be-come chargeable when the goods are imported. Where
goods are placed under one of the arrangements referred
to in Article 7 (3) on entry into the Community, the
chargeable event shall occur and the tax shall become
chargeable only when the goods cease to be covered by
those arrangements.
However, where imported goods are subject to customs
duties, to agricultural levies or to charges having equival-
ent effect established under a common policy, the charge-
able event shall occur and the tax shall become chargeable
when the chargeable event for those Community duties oc-
curs and those duties become chargeable.
Where imported goods are not subject to any of those
Community duties, Member States shall apply the provi-
sions in force governing customs duties as regards the oc-
currence of the chargeable event and the moment when
the tax becomes chargeable.
TITLE VIII
TAXABLE AMOUNT
Article 11
A. Within the territory of the country
1. The taxable amount shall be:
(a) in respect of supplies of goods and services other than
those referred to in (b), (c) and (d) below, everything
which constitutes the consideration which has been or
is to be obtained by the supplier from the purchaser,
the customer or a third party for such supplies includ-
ing subsidies directly linked to the price of such sup-
plies;
(b) in respect of supplies referred to in Article 5 (6) and
(7), the purchase price of the goods or of similar
goods or, in the absence of a purchase price, the cost
price, determined as the time of supply;
(c) in respect of supplies referred to in Article 6 (2), the
full cost to the taxable person of providing the ser-
vices;
(d) in respect of supplies referred to in Article 6 (3), the
open market value of the services supplied.77/388/EEC
91/680/EEC
77/388/EEC
77/388/EEC - - - I
12‘Open market value’ of services shall mean the amount
which a customer at the marketing stage at which the sup-
ply takes place would have to pay to a supplier at arm’s
length within the territory of the country at the time of the
supply under conditions of fair competition to obtain the
services in question.
2. The taxable amount shall include:
(a) taxes, duties, levies and charges, excluding the value
added tax itself;
(b) incidental expenses such as commission, packing,
transport and insurance costs charged by the supplier
to the purchaser or customer. Expenses covered by a
separate agreement may be considered to be inciden-
tal expenses by the Member States.
3. The taxable amount shall not include:
(a) price reductions by way of discount for early payment;
(b) price discounts and rebates allowed to the customer
a n da c c o u n t e df o ra tt h et i m eo ft h es u p p l y ;
(c) the amounts received by a taxable person from his
p u r c h a s e ro rc u s t o m e ra sr e p a y m e n tf o re x p e n s e sp a i d
out in the name and for the account of the latter and
which are entered in his books in a suspense account.
The taxable person must furnish proof of the actual
amount of this expenditure and may not deduct any
tax which may have been charged on these transac-
tions.
4. By way of derogation from paragraphs 1, 2 and 3,Member States which, on 1 January 1993, did not avail
themselves of the option provided for in the third subpara-
graph of Article 12 (3) (a) may, where they avail them-
selves of the option provided for in Title B (6), provide
that, for the transactions referred to in the second sub-
paragraph of Article 12 (3) (c), the taxable amount shall
be equal to a fraction of the amount determined in accor-
dance with paragraphs 1, 2 and 3.
That fraction shall be determined in such a way that the
value added tax thus due is, in any event, equal to at least
5 % of the amount determined in accordance with para-
graphs 1, 2 and 3.
B. Importation of goods
1. The taxable amount shall be the value for customs
purposes, determined in accordance with the Community
provisions in force; this shall also apply for the import of
goods referred to in Article 7 (1) (b).77/388/EEC
94/5/EC
77/388/EEC
92/111/EEC
91/680/EEC - - - deleted
77/388/EEC - - - I
133. The taxable amount shall include, in so far as they
are not already included:
(a) taxes, duties, levies and other charges due outside the
importing Member State and those due by reason of
importation, excluding the value added tax to be le-
vied;
(b) incidental expenses, such as commission, packing,
transport and insurance costs, incurred up to the first
place of destination within the territory of the import-
ing Member State.
‘First place of destination’ shall mean the place men-
tioned on the consignment note or any other docu-
ment by means of which the goods are imported into
the importing Member State. In the absence of such
an indication, the first place of destination shall be
taken to be the place of the first transfer of cargo in
the importing Member State.
The incidental expenses referred to above shall also
be included in the taxable amount where they result
from transport to another place of destination within
the territory of the Community if that place is known
when the chargeable event occurs.
4. The taxable amount shall not include those factors re-ferred to in A (3) (a) and (b).
5. When goods have been temporarily exported from
the
Community and are re-imported after having undergone
outside the Community repair, processing or adaptation, or
after having been made up or reworked abroad, Mem-
ber States shall take steps to ensure that the treatment of
the goods for value added tax purposes is the same as that
which would have applied to the goods in question had the
above operations been carried out within the territory of
the country.
6. By way of derogation from paragraphs 1 to 4, Mem-ber States which, on 1 January 1993, did not avail them-
selves of the option provided for in the third subparagraph
of Article 12 (3) (a) may provide that for imports of the
works of art, collectors’ items and antiques defined in Ar-
ticle 26a (A) (a), (b) and (c), the taxable amount shall be
equal to a fraction of the amount determined in accor-
dance with paragraphs 1 to 4.
That fraction shall be determined in such a way that the
value added tax thus due on the import is, in any event,
equal to at least 5 % of the amount determined in accor-
dance with paragraphs 1 to 4.91/680/EEC
95/7/EC
77/388/EEC
91/680/EEC
91/680/EEC
91/680/EEC - - - deleted
94/5/EC
77/388/EEC - - - I
14C. Miscellaneous provisions
1. In the case of cancellation, refusal or total or partial
non-payment, or where the price is reduced after the sup-
ply takes place, the taxable amount shall be reduced ac-
cordingly under conditions which shall be determined by
the Member States.
However, in the case of total or partial non-payment,
Member States may derogate from this rule.
2. Where information for determining the taxableamount on importation is expressed in a currency other
than that of the Member State where assessment takes
place, the exchange rate shall be determined in accordance
with the Community provisions governing the calculation
of the value for customs purposes.
Where information for the determination of the taxable
amount of a transaction other than an import transaction
is expressed in a currency other than that of the MemberState where assessment takes place, the exchange rate ap-
plicable shall be the latest selling rate recorded, at the
time the tax becomes chargeable, on the most representa-
tive exchange market or markets of the Member State con-
cerned, or a rate determined by reference to that or those
markets, in accordance with the down by that Member
State. However, for some of those transactions or for cer-
tain categories of taxable person, Member States may con-
tinue to apply the exchange rate determined in accordance
with the Community provisions in force governing the cal-
culation of the value for customs purposes.
3. As regards returnable packing costs, Member Statesmay:
— either exclude them from the taxable amount and
take the necessary measures to see that this amount is
adjusted if the packing is not returned,
— or include them in the taxable amount and take the
necessary measures to see that this amount is adjusted
where the packing is in fact returned.
TITLE IX
RATES
Article 12
1 . T h er a t ea p p l i c a b l et ot a x a b l et r a n s a c t i o n ss h a l lb e
that in force at the time of the chargeable event. However:
(a) in the cases provided for in the second and third sub-
paragraphs of Article 10 (2), the rate to be used shall
be that in force when the tax becomes chargeable;77/388/EEC
91/680/EEC
77/388/EEC
77/388/EEC - - - I
15(b) in the cases provided for in the second and third sub-
paragraphs of Article 10 (3), the rate applicable shall
be that in force at the time when the tax becomes
chargeable.
2. In the event of changes in the rates, Member Statesmay:
— effect adjustments in the cases provided for in para-
graph 1 (a) in order to take account of the rate appli-
cable at the time when the goods or services were
supplied,
— adopt all appropriate transitional measures.
3. (a) The standard rate of value added tax shall be
fixed by each Member State as a percentage of
the taxable amount and shall be the same for the
supply of goods and for the supply of services.
From 1 January 1997 to 31 December 1998, this
percentage may not be less than 15.
On a proposal from the Commission and after
consulting the European Parliament and the
Economic and Social Committee, the Council
shall decide unanimously on the level of the
standard rate to be applied after 31 December
1998.
Member States may also apply either one or two
reduced rates. These rates shall be fixed as a
percentage of the taxable amount which may not
be less than 5 % and shall apply only to supplies
of the categories of goods and services specified
in Annex H.
(b) Member States may apply a reduced rate to sup-
plies of natural gas and electricity provided that
no risk of distortion of competition exists. A
Member State intending to apply such a rate
must, before doing so, inform the Commission.
The Commission shall give a decision on the ex-
istence of a risk of distortion of competition. If
the Commission has not taken that decision with-
in three months of the receipt of the information
a risk of distortion of competition is deemed not
to exist.
(c) Member States may provide that the reduced
rate, or one of the reduced rates, which they
apply in accordance with the third paragraph of
(a) shall also apply to imports of works of art,
collectors’ items and antiques as referred to in
Article 26a (A) (a), (b) and (c).92/111/EEC
77/388/EEC
92/77/EEC - - - 96/95/EC
96/95/EC
92/77/EEC
94/5/EC
77/388/EEC - - - I
16Where they avail themselves of this option,
Member States may also apply the reduced rate
to supplies of works of art, within the meaning
of Article 26a (A) (a):
— effected by their creator or his successors in
title,
— effected on an occasional basis by a taxable
person other than a taxable dealer, where
these works of art have been imported by
the taxable person himself or where they
have been supplied to him by their creator
or his successors in title or where they have
entitled him to full deduction of value-
added tax.
(e) The rules concerning the regime and the rates
applied to gold shall be determined by a direc-tive relating to special arrangements applicable
to gold. The Commission shall make such a pro-
posal in time for its adoption by the Council,
acting unanimously, before 31 December 1992.
Member States will take all necessary measures
to combat fraud in this area from 1 January
1993. These measures may include the introduc-
tion of a system of accounting for VAT on sup-
plies of gold between taxable persons in the
same Member State which provides for the pay-
ment of tax by the buyer on behalf of the seller
and a simultaneous right for the buyer to a de-
duction of the same amount of tax as input tax.
4. Each reduced rate shall be so fixed that the
amount of value added tax resulting from the application
thereof shall be such as in the normal way to permit the
deduction therefrom of the whole of the value added tax
deductible under the provisions of Article 17.
On the basis of a report from the Commission, the Coun-cil shall, starting in 1994, review the scope of the reduced
rates every two years. The Council, acting unanimously on
a proposal from the Commission, may decide to alter the
list of goods and services in Annex H.
5. Subject to paragraph 3 (c), the rate applicable on theimportation of goods shall be that applied to the supply of
like goods within the territory of the country.94/5/EC
96/42/EEC - - - deleted
92/77/EEC
77/388/ECC - - - 92/77/EC - - - deleted
92/77/EEC
94/5/EC
77/388/EEC - - - I
176. The Portuguese Republic may apply to transactions
carried out in the autonomous regions of the Azores and
Madeira and to direct imports to those regions, reduced
rates in comparison to those applying on the mainland
TITLE X
EXEMPTIONS
Article 13
Exemptions within the territory of the country
A. Exemptions for certain activities in the public interest
1. Without prejudice to other Community provisions,
Member States shall exempt the following under conditions
which they shall lay down for the purpose of ensuring the
correct and straightforward application of such exemptions
and of preventing any possible evasion, avoidance or
abuse:
(a) the supply by the public postal services of services
other than passenger transport and telecommunica-tions services, and the supply of goods incidental
thereto;
(b) hospital and medical care and closely related activities
undertaken by bodies governed by public law or, un-
der social conditions comparable to those applicable
to bodies governed by public law, by hospitals, centres
for medical treatment or diagnosis and other duly rec-
ognized establishments of a similar nature;
(c) the provision of medical care in the exercise of the
medical and paramedical professions as defined by the
Member State concerned;
(d) supplies of human organs, blood and milk;
(e) services supplied by dental technicians in their profes-
sional capacity and dental prostheses supplied by den-
tists and dental technicians;
(f) services supplied by independent groups of persons
whose activities are exempt from or are not subject to
value added tax, for the purpose of rendering their
members the services directly necessary for the exer-
cise of their activity, where these groups merely claim
from their members exact reimbursement of their
share of the joint expenses, provided that such exemp-
tion is not likely to produce distortion of competition;Act of Accession ES, PT
77/388/EEC
77/388/EEC - - - I
18(g) the supply of services and of goods closely linked to
welfare and social security work, including those sup-
plied by old people’s homes, by bodies governed by
public law or by other organizations recognized as
charitable by the Member State concerned;
(h) the supply of services and of goods closely linked to
the protection of children and young persons by bo-
dies governed by public law or by other organizations
recognized as charitable by the Member State con-
cerned;
(i) children’s or young people’s education, school or uni-
versity education, vocational training or retraining, in-
cluding the supply of services and of goods closely
related thereto, provided by bodies governed by pub-
lic law having such as their aim or by other organiza-
tions defined by the Member State concerned as hav-
ing similar objects;
(j) tuition given privately by teachers and covering school
or university education;
(k) certain supplies of staff by religious or philosophical
institutions for the purpose of subparagraphs (b), (g),
(h) and (i) of this Article and with a view to spiritual
welfare;
(l) supply of services and goods closely linked thereto for
the benefit of their members in return for a subscrip-
tion fixed in accordance with their rules by non-profit-
making organizations with aims of a political, trade-
union, religious, patriotic, philosophical, philanthropic
or civic nature, provided that this exemption is not
likely to cause distortion of competition;
(m) certain services closely linked to sport or physical
education supplied by non-profit-making organizations
to persons taking part in sport or physical education;
(n) certain cultural services and goods closely linked
thereto supplied by bodies governed by public law or
by other cultural bodies recognized by the Member
State concerned;77/388/EEC
77/388/EEC - - - I
19(o) the supply of services and goods by organizations
whose activities are exempt under the provisions of
subparagraphs (b), (g), (h), (i), (l), (m) and (n) above
in connection with fund-raising events organized ex-
clusively for their own benefit provided that exemp-
tion is not likely to cause distortion of competition.
Member States may introduce any necessary restric-
tions in particular as regards the number of events or
the amount of receipts which give entitlement to ex-
emption;
(p) the supply of transport services for sick or injured
persons in vehicles specially designed for the purpose
by duly authorized bodies;
(q) activities of public radio and television bodies other
than those of a commercial nature.
2. (a) Member States may make the granting to bodies
other than those governed by public law of eachexemption provided for in (1) (b), (g), (h), (i),
(1), (m) and (n) of this Article subject in each
individual case to one or more of the following
conditions:
— they shall not systematically aim to make a
profit, but any profits nevertheless arising
shall not be distributed, but shall be as-
signed to the continuance or improvement
of the services supplied,
— they shall be managed and administered on
an essentially voluntary basis by persons
who have no direct or indirect interest,
either themselves or through intermediaries,
in the results of the activities concerned,
— they shall charge prices approved by the
public authorities or which do not exceed
such approved prices or, in respect of those
services not subject to approval, prices
lower than those charged for similar services
by commercial enterprises subject to value
added tax,
— exemption of the services concerned shall
not be likely to create distortions of com-
petition such as to place at a disadvantage
commercial enterprises liable to value added
tax.
(b) The supply of services or goods shall not be
granted exemption as provided for in (1) (b), (g),
(h), (i), (l), (m) and (n) above if:77/388/EEC
77/388/EEC - - - I
20— it is not essential to the transactions
exempted,
— its basic purpose is to obtain additional in-
come for the organization by carrying out
transactions which are in direct competition
with those of commercial enterprises liable
for value added tax.
B. Other exemptions
Without prejudice to other Community provisions,
Member States shall exempt the following under conditions
which they shall lay down for the purpose of ensuring the
correct and straightforward application of the exemptions
and of preventing any possible evasion, avoidance or
abuse:
(a) insurance and reinsurance transactions, including re-
lated services performed by insurance brokers and in-
surance agents;
(b) the leasing or letting of immovable property exclud-
ing:
1. the provision of accomodation (SIC! accom-
modation), as defined in the laws of the Member
States, in the hotel sector or in sectors with a
similar function, including the provision of acco-
modation (SIC! accommodation) in holiday
camps or on sites developed for use as camping
sites;
2. the letting of premises and sites for parking ve-
hicles;
3. lettings of permanently installed equipment and
machinery;
4. hire of safes.
Member States may apply further exclusions to the
scope of this exemption;
(c) supplies of goods used wholly for an activity
exempted under this Article or under Article 28 (3)
(b) when these goods have not given rise to the right
to deduction, or of goods on the acquisition or pro-
duction of which, by virtue of Article 17 (6), value
added tax did not become deductible;
(d) the following transactions:
1. the granting and the negotiation of credit and
the management of credit by the person granting
it;77/388/EEC
77/388/EEC - - - I
212. the negotiation of or any dealings in credit guar-
antees or any other security for money and the
management of credit guarantees by the person
who is granting the credit;
3. transactions, including negotiation, concerning
deposit and current accounts, payments,
transfers, debts, cheques and other negotiable in-
struments, but excluding debt collection and fac-
toring;
4. transactions, including negotiation, concerning
currency, bank notes and coins used as legal ten-
der, with the exception of collectors’ items; col-
lectors’ items’ shall be taken to mean gold, silver
or other metal coins or bank notes which are not
normally used as legal tender or coins of numis-
matic interest;
5. transactions, including negotiation, excluding
management and safekeeping, in shares, interests
in companies or associations, debentures and
other securities, excluding:
— documents establishing title to goods,
— the rights or securities referred to in Article
5( 3 ) ;
6. management of special investment funds as de-
fined by Member States;
(e) the supply at face value of postage stamps valid for
use for postal services within the territory of the
country, fiscal stamps, and other similar stamps;
(f) betting, lotteries and other forms of gambling, subject
to conditions and limitations laid down by each
Member State;
(g) the supply of buildings or parts thereof, and of the
land on which they stand, other than as described in
Article 4 (3) (a);
(h) the supply of land which has not been built on other
than building land as described in Article 4 (3) (b).
C. Options
Member States may allow taxpayers a right of option for
taxation in cases of:
(a) letting and leasing of immovable property;
(b) the transactions covered in B (d) (g) and (h) above.77/388/EEC
77/388/EEC - - - I
22Member States may restrict the scope of this right of op-
tion and shall fix the details of its use.
Article 14
Exemptions on importation
1. Without prejudice to other Community provisions,
Member States shall exempt the following under conditions
which they shall lay down for the purpose of ensuring the
correct and straightforward application of such exemption
and of preventing any possible evasion, avoidance or
abuse:
(a) final importation of goods of which the supply by a
taxable person would in all circumstances be
exempted within the country;
(d) final importation of goods qualifying for exemption
from customs duties other than as provided for in the
Common Customs Tariff . However, Member
States shall have the option of not granting exemption
where this would be liable to have a serious effect on
conditions of competition ;
This exemption shall also apply to the import of
goods, within the meaning of Article 7 (1) (b), which
would be capable of benefiting from the exemption
set out above if they had been imported within the
meaning of Article 7 (1) (a).
(e) reimportation by the person who exported them of
goods in the state in which they were exported, where
they qualify for exemption from customs duties ;
(g) importations of goods:
— under diplomatic and consular arrangements,
which qualify for exemption from customs duties
,
— by international organizations recognized as such
by the public authorities of the host country, and
by members of such organizations, within the li-
mits and under the conditions laid down by the
international conventions establishing the organ-
izations or by headquarters agreements,77/388/EEC
91/680/EEC - - - deleted
92/111/EEC - - - deleted
77/388/EEC
91/680/EEC - - - deleted
91/680/EEC - - - deleted
92/111/EEC
77/388/EEC
91/680/EEC - - - deleted
91/680/EEC - - - deleted
77/388/EEC
91/680/EEC - - - deleted
77/388/EEC - - - I
23— into the territory of Member States which are
parties to the North Atlantic T reaty by the
armed forces of other States which are parties to
that T reaty for the use of such forces or the civil-
ian staff accompanying them or for supplying
their messes or canteens where such forces take
part in the common defence effort:
(h) importation into ports by sea fishing undertakings of
their catches, unprocessed or after undergoing pres-
ervation for marketing but before being supplied;
(i) the supply of services, in connection with the import-
ation of goods where the value of such services is in-
cluded in the taxable amount in accordance with Ar-
ticle 11 B (3) (b);
(j) importation of gold by Central Banks.
2. The Commission shall submit to the Council at the
earliest opportunity proposals designed to lay down Com-munity tax rules clarifying the scope of the exemptions re-
ferred to in paragraph 1 and detailed rules for their imple-
mentation.
Until the entry into force of these rules, Member States
may:
— maintain their national provisions in force on matters
related to the above provisions,
— adapt their national provisions to minimize distortion
of competition and in particular the non-imposition or
double imposition of value added tax within the Com-
munity,
— use whatever administrative procedures they consider
most appropriate to achieve exemption.
Member States shall inform the Commission, which shall
inform the other Member States, of the measures they
have adopted and are adopting pursuant to the preceding
provisions.
Article 15
Exemption of exports from the Community and like
transactions and international transport
Without prejudice to other Community provisions MemberStates shall exempt the following under conditions which
they shall lay down for the purpose of ensuring the correct
and straightforward application of such exemptions and of
preventing any evasion, avoidance or abuse:
1. the supply of goods dispatched or transported to a
destination outside the
Community by or on behalf of
the vendor;77/388/EEC
91/680/EEC
77/388/EEC
91/680/EEC
77/388/EEC - - - I
242. the supply of goods dispatched or transported to a
destination outside the Community by or on behalf of
a purchaser not established within the territory of the
country, with the exception of goods transported by
the purchaser himself for the equipping, fuelling and
provisioning of pleasure boats and private aircraft or
any other means of transport for private use;
In the case of the supply of goods to be carried in thepersonal luggage of travellers, this exemption shall ap-
ply on condition that:
— the traveller is not established within the Com-
munity,
— the goods are transported to a destination out-
side the Community before the end of the third
month following that in which the supply is ef-
fected,
— the total value of the supply, including value
added tax, is more than the equivalent in nation-
al currency of ECU 175, fixed in accordance
with Article 7 (2) of Directive 69/169/EEC (
1);
however, Member States may exempt a supply
with a total value of less than that amount.
For the purposes of applying the second subpara-
graph:
— a traveller not established within the Community
shall be taken to mean a traveller whose domi-
cile or habitual residence is not situated within
the Community. For the purposes of this provi-
sion, ‘domicile or habitual residence ’shall mean
the place entered as such in a passport, identity
card or other identity documents which the
Member State within whose territory the supply
takes place recognizes as valid,
— proof of exportation shall be furnished by means
of the invoice or other document in lieu thereof,
endorsed by the customs office where the goods
left the Community.
Each Member State shall transmit to the Commission
specimens of the stamps it uses for the endorsement
referred to in the second indent of the third subpara-
graph. The Commission shall transmit this informa-
tion to the tax authorities in the other Member
States.
(1) OJ No L 133, 4. 6. 1969, p. 6. Directive as last amended
by Directive 94/4/EC (OJ No L 60, 3. 3. 1994, p. 14).77/388/EEC
91/680/EEC
95/7/EC
77/388/EEC - - - I
253. The supply of services consisting of work on movable
property acquired or imported for the purpose of un-
dergoing such work within the territory of the Com-
munity, and dispatched or transported out of the
Community by the person providing the services or by
the customer if not established within the territory of
thec o u n t r yo ro nb e h a l fo fe i t h e ro ft h e m ;
4. the supply of goods for the fuelling and provisioning
of vessels:
(a) used for navigation on the high seas and carrying
passengers for reward or used for the purpose of
commercial, industrial or fishing activities;
(b) used for rescue or assistance at sea, or for in-
shore fishing, with the exception, for the latter,
of ships’ provisions;
(c) of war, as defined in subheading 89.01 A of the
Common Customs T ariff, leaving the country andbound for foreign ports or anchorages.
The Commission shall submit to the Council as soonas possible proposals to establish Community fiscal
rules specifying the scope of and practical arrange-
ments for implementing this exemption and the ex-
emptions provided for in (5) to (9). Until these rules
come into force, Member States may limit the extent
of the exemption provided for in this paragraph.
5. the supply, modification, repair, maintenance, charter-
ing and hiring of the sea-going vessels referred to in
paragraph 4 (a) and (b) and the supply, hiring, repair
and maintenance of equipment — including fishing
equipment — incorporated or used therein;
6. the supply, modification, repair, maintenance, charter-
ing and hiring of aircraft used by airlines operating
for reward chiefly on international routes, and the
supply, hiring, repair and maintenance of equipment
incorporated or used therein;
7. the supply of goods for the fuelling and provisioning
of aircraft referred to in paragraph 6;
8. the supply of services other than those referred to in
paragraph 5, to meet the direct needs of the sea-going
vessels referred to in that paragraph or of their
cargoes;91/680/EEC
92/111/EEC
77/388/EEC
92/111/EEC
77/388/EEC
77/388/EEC - - - I
269. the supply of services other than those referred to in
paragraph 6, to meet the direct needs of aircraft re-
ferred to in that paragraph or of their cargoes;
10. supplies of goods and services:
— under diplomatic and consular arrangements,
— to international organizations recognized as such
by the public authorities of the host country, and
to members of such organizations, within the
limits and under the conditions laid down by the
international conventions establishing the orga-
nizations or by headquarters agreements,
— effected within a Member State which is a party
to the North Atlantic T reaty and intended either
for the use of the forces of other States which
are parties to that T reaty or of the civilian staff
accompanying them, or for supplying their
messes or canteens when such forces take part inthe common defence effort,
— to another Member State and intended for the
forces of any Member State which is a party to
the North Atlantic T reaty, other than the Mem-
ber State of destination itself, for the use of
those forces or of the civilian staff accompanying
them, or for supplying their messes or canteens
when such forces take part in the common de-
fense effort.
This exemption shall be subject to limitations laid
down by the host Member State until Community tax
rules are adopted.
In cases where the goods are not dispatched or trans-ported out of the country, and in the case of services,
the benefit of the exemption may be given by means
of a refund of the tax.
11. supplies of gold to Central Banks;
12. goods supplied to approved bodies which export them
from the Community as part of their humanitarian,
charitable or teaching activities outside the Commun-
ity. This exemption may be implemented by means ofar e f u n do ft h et a x ;77/388/EEC
91/680/EEC
77/388/ECC - - - 92/111/EEC - - - 91/680/EEC
92/111/EEC
77/388/EEC
91/680/EEC
91/680/EEC
77/388/EEC - - - I
2713. The supply of services, including transport and ancil-
lary operations, but excluding the supply of services
exempted in accordance with Article 13, where these
are directly connected with the export of goods or im-
ports of goods covered by the provisions of Article 7
(3) or Article 16 (1), Title A;
14. services supplied by brokers and other intermediaries,
acting in the name and for account of another person,
where they form part of transactions specified in this
Article, or of transactions carried out outside the
Community.
This exemption does not apply to travel agents who
supply in the name and for account of the traveller
services which are supplied in other Member States.
15. The Portuguese Republic may treat sea and air trans-
port between the islands making up the autonomous
regions of the Azores and Madeira and between thoseregions and the mainland in the same way as interna-
tional transport.
Article 16
Special exemptions linked to international goods traffic
1. Without prejudice to other Community provisions,
Member States may, subject to the consultations provided
for in Article 29, take special measures designed to relieve
from value added tax all or some of the following transac-
tions, provided that they are not aimed at final use and/or
consumption and that the amount of value added tax
charged at entry for home use corresponds to the amount
of the tax which should have been charged had each of
these transactions been taxed on import or within the terri-
tory of the country:
A. imports of goods which are intended to be placed
under warehousing arrangements other than customs;
B. supplies of goods which are intended to be
a) produced to customs and, where applicable,
placed in temporary storage;
b) placed in a free zone or in a free warehouse;
c) placed under customs warehousing arrangements
or inward processing arrangements;
d) admitted into territorial waters:92/111/EEC
77/388/EEC
91/680/EEC
Act of Accession ES, PT
77/388/EEC [cf. Article 28c]
91/680/EEC
77/388/EEC - - - I
28— in order to be incorporated into drilling or
production platforms, for purposes of the
construction, repair, maintenance, alteration
or fitting-out of such platforms, or to link
such drilling or production platforms to the
mainland,
— for the fuelling and provisioning of drilling
or production platforms;
e) placed under warehousing arrangements other
than customs.
The places referred to in (a), (b), (c) and (d) shall be
as defined by the Community customs provisions in
force;
C. supplies of services relating to the supplies of goods
referred to in B;
D. supplies of goods and of services carried out in the
places listed in B and still subject to one of the ar-rangements specified therein;
E. supplies:
— of goods referred to in Article 7 (1) (a) still sub-
ject to arrangements for temporary importation
with total exemption from import duty or to ex-
ternal transit arrangements,
— of goods referred to in Article 7 (1) (b) still sub-
ject to the internal Community transit procedure
provided for in Article 33a,
as well as supplies of services relating to such sup-
plies.
2. Subject to the consultation provided for in Article 29,Member States may opt to exempt imports for and sup-
plies of goods to a taxable person intending to export them
as they are or after processing, as well as supplies of ser-
vices linked with his export business, up to a maximum
equal to the value of his exports during the preceding 12
months.
3. The Commission shall submit to the Council at the
earliest opportunity proposals concerning common arrange-
ments for applying value added tax to the transactions re-
ferred to in paragraphs 1 and 2.
TITLE XI
DEDUCTIONS
Article 17
Origin and scope of the right to deduct
1. The right to deduct shall arise at the time when the
deductible tax becomes chargeable.91/680/EEC
77/388/EEC
[cf. Article 28f]
77/388/EEC - - - I
292. In so far as the goods and services are used for the
purposes of his taxable transactions, the taxable person
shall be entitled to deduct from the tax which he is liable
to pay:
(a) value added tax due or paid in respect of goods or
services supplied or to be supplied to him by another
taxable person;
(b) value added tax due or paid in respect of imported
goods;
(c) value added tax due under Articles 5 (7) (a) and 6
(3).
3. Member States shall also grant to every taxable per-
son the right to a deduction or refund of the value added
tax referred to in paragraph 2 in so far as the goods and
services are used for the purposes of:
(a) transactions relating to the economic activities as re-
ferred to in Article 4 (2) carried out in anothercountry, which would be eligible for deduction of tax
if they had occurred in the territory of the country;
(b) transactions which are exempt under Article 14 (1) (i)
and under Articles 15 and 16 (1) (B), (C) and (D),
and paragraph 2;
(c) any of the transactions exempted under Article 13 B
(a) and (d), paragraphs 1 to 5, when the customer is
established outside the Community or when these
transactions are directly linked with goods intended to
be exported to a country outside the Community.
4. The Council shall endeavour to adopt before 31 De-
cember 1977, on a proposal from the Commission and act-
ing unanimously, Community rules laying down the ar-
rangements under which refunds are to be made in
accordance with paragraph 3 to taxable persons not estab-
lished in the territory of the country. Until such Commun-
ity arrangements enter into force, Member States shall
themselves determine the method by which the refund con-
cerned shall be made. Where the taxable person is not
resident in the territory of the Community, Member States
may refuse the refund or impose supplementary conditions.
5. As regards goods and services to be used by a taxable
person both for transactions covered by paragraphs 2 and
3, in respect of which value added tax is deductible, and
for transactions in respect of which value added tax is not
deductible, only such proportion of the value added tax
shall be deductible as is attributable to the former transac-
tions.
This proportion shall be determined, in accordance with
Article 19, for all the transactions carried out by the tax-
able person.77/388/EEC
77/388/EEC - - - I
30However, Member States may:
(a) authorize the taxable person to determine a propor-
tion for each sector of his business, provided that sep-
arate accounts are kept for each sector;
(b) compel the taxable person to determine a proportion
for each sector of his business and to keep separate
accounts for each sector;
(c) authorize or compel the taxable person to make the
deduction on the basis of the use of all or part of the
goods and services;
(d) authorize or compel the taxable person to make the
deduction in accordance with the rule laid down in
the first subparagraph, in respect of all goods and ser-
vices used for all transactions referred to therein;
(e) provide that where the value added tax which is not
deductible by the taxable person is insignificant it
shall be treated as nil.
6. Before a period of four years at the latest has elapsed
from the date of entry into force of this Directive, the
Council, acting unanimously on a proposal from the Com-
mission, shall decide what expenditure shall not be eligible
for a deduction of value added tax. V alue added tax shall
in no circumstances be deductible on expenditure which is
not strictly business expenditure, such as that on luxuries,
amusements or entertainment.
Until the above rules come into force, Member States may
retain all the exclusions provided for under their national
laws when this Directive comes into force.
7. Subject to the consultation provided for in Article 29,
each Member State may, for cyclical economic reasons, to-
tally or partly exclude all or some capital goods or other
goods from the system of deductions. T o maintain identical
conditions of competition, Member States may instead of
refusing deduction, tax the goods manufactured by the tax-
able person himself or which he has purchased in the
country or imported, in such a way that the tax does not
exceed the value added tax which would have been
charged on the acquisition of similar goods.
Article 18
Rules governing the exercise of the right to deduct
1. T o exercise his right to deduct, the taxable person
must:77/388/EEC
[cf. Article 28f]
77/388/EEC - - - I
31(a) in respect of deductions under Article 17 (2) (a), hold
an invoice, drawn up in accordance with Article 22
(3);
(b) in respect of deductions under Article 17 (2) (b), hold
an import document, specifying him as consignee or
importer, and stating or permitting calculation of the
amount of tax due;
(c) in respect of deductions under Article 17 (2) (c),
comply with the formalities established by each
Member State;
(d) when he is required to pay the tax as a customer or
purchaser where Article 21 (1) applies, comply with
the formalities laid down by each Member State.
2. The taxable person shall effect the deduction by sub-
tracting from the total amount of value added tax due for
a given tax period the total amount of the tax in respect of
which, during the same period, the right to deduct hasarisen and can be exercised under the provisions of para-
graph 1.
However, Member States may require that as regards tax-
able persons who carry out occasional transactions as de-
fined in Article 4 (3), the right to deduct shall be exercised
o n l ya tt h et i m eo ft h es u p p l y .
3. Member States shall determine the conditions and
procedures whereby a taxable person may be authorized to
make a deduction which he has not made in accordance
with the provisions of paragraphs 1 and 2.
4. where for a given tax period the amount of author-
ized deductions exceeds the amount of tax due, the
Member States may either make a refund or carry the ex-
cess forward to the following period according to condi-
tions which they shall determine.
However, Member States may refuse to refund or carry
forward if the amount of the excess is insignificant.
Article 19
Calculation of the deductible proportion
1. The proportion deductible under the first subpara-
graph of Article 17 (5) shall be made up of a fraction hav-
ing:
— as numerator, the total amount, exclusive of value
added tax, of turnover per year attributable to trans-
actions in respect of which value added tax is deduct-
ible under Article 17 (2) and (3),77/388/EEC
77/388/EEC - - - I
32— as denominator, the total amount, exclusive of value
added tax, of turnover per year attributable to trans-
actions included in the numerator and to transactions
in respect of which value added tax is not deductible.
The Member States may also include in the denomi-
nator the amount of subsidies, other than those speci-
fied in Article 11 A (1) (a).
The proportion shall be determined on an annual basis,
fixed as a percentage and rounded up to a figure not ex-
ceeding the next unit.
2. By way of derogation from the provisions of para-
graph 1, there shall be excluded from the calculation of
the deductible proportion, amounts of turnover attributable
to the supplies of capital goods used by the taxable person
for the purposes of his business. Amounts of turnover at-
tributable to transactions specified in Article 13 B (d), in
so far as these are incidental transactions, and to incidentalreal estate and financial transactions shall also be excluded.
where Member States exercise the option provided under
Article 20 (5) not to require adjustment in respect of capi-
tal goods, they may include disposals of capital goods in
the calculation of the deductible proportion.
3. The provisional proportion for a year shall be that
calculated on the basis of the preceding year’s transactions.
In the absence of any such transactions to refer to, or
where they were insignificant in amount, the deductible
proportion shall be estimated provisionally, under supervi-
sion of the tax authorities, by the taxable person from his
own forecasts. However, Member States may retain their
current rules.
Deductions made on the basis of such provisional propor-
tion shall be adjusted when the final proportion is fixed
during the next year.
Article 20
Adjustments of deductions
1. The initial deduction shall be adjusted according to
the procedures laid down by the Member States, in par-
ticular:
(a) where that deduction was higher or lower than that to
which the taxable person was entitled;77/388/EEC
77/388/EEC - - - I
33(b) where after the return is made some change occurs in
the factors used to determine the amount to be de-
ducted, in particular where purchases are cancelled or
price reductions are obtained; however, adjustment
shall not be made in cases of transactions remaining
totally or partially unpaid and of destruction, loss or
theft of property duly proved or confirmed, nor in the
case of applications for the purpose of making gifts of
small value and giving samples specified in Article 5
(6). However, Member States may require adjustment
in cases of transactions remaining totally or partially
unpaid and of theft.
2. In the case of capital goods, adjustment shall be
spread over five years including that in which the goods
were acquired or manufactured. The annual adjustment
shall be made only in respect of one-fifth of the tax im-
posed on the goods. The adjustment shall be made on thebasis of the variations in the deduction entitlement in
subsequent years in relation to that for the year in which
the goods were acquired or manufactured.
By way of derogation from the preceding subparagraph,
Member States may base the adjustment on a period of
five full years starting from the time at which the goods
are first used.
I nt h ec a s eo fi m m o v a b l ep r o p e r t ya c q u i r e da sc a p i t a lgoods, the adjustment period may be extended up to 20
years.
3. In the case of supply during the period of adjustmentcapital goods shall be regarded as if they had still been
applied for business use by the taxable person until expiry
of the period of adjustment. Such business activities are
presumed to be fully taxed in cases where the delivery of
the said goods is taxed; they are presumed to be fully
exempt where the delivery is exempt. The adjustment shall
be made only once for the whole period of adjustment still
to be covered.
However, in the latter case, Member States may waive the
requirement for adjustment in so far as the purchaser is a
taxable person using the capital goods in question solely
for transactions in respect of which value added tax is de-
ductible.
4. For the purposes of applying the provisions of para-
graphs 2 and 3, Member States may:
— define the concept of capital goods,
— indicate the amount of the tax which is to be taken
into consideration for adjustment,77/388/EEC
95/7/EC
77/388/EEC
77/388/EEC - - - I
34— adopt any suitable measures with a view to ensuring
that adjustment does not involve any unjustified ad-
vantage,
— permit administrative simplifications.
5. If in any Member State the practical effect of apply-
ing paragraphs 2 and 3 would be insignificant, that
Member State may subject to the consultation provided for
in Article 29 forego application of these paragraphs having
regard to the need to avoid distortion of competition, the
overall tax effect in the Member State concerned and the
need for due economy of administration.
6. Where the taxable person transfers from being taxed
in the normal way to a special scheme or vice versa ,
Member States may take all necessary measures to ensure
that the taxable person neither benefits nor is prejudiced
unjustifiably.
TITLE XII
PERSONS LIABLE FOR PAYMENT FOR TAX
Article 21
Persons liable to pay tax to the authorities
T h ef o l l o w i n gs h a l lb el i a b l et op a yv a l u ea d d e dt a x :
1. under the internal system:
(a) taxable persons who carry out taxable transac-
tions other than those referred to in Article 9 (2)
(e) and carried out by a taxable person resident
abroad. When the taxable transaction is effected
by a taxable person resident abroad Member
States may adopt arrangements whereby tax is
payable by someone other than the taxable per-
son residing abroad. Inter alia a tax representa-
tive or other person for whom the taxable trans-
action is carried out may be designated as such
other person. The Member States may also pro-
vide that someone other than the taxable person
shall be held jointly and severally liable for pay-ment of the tax;
(b) persons to whom services covered by Article 9
(2) (e) are supplied and carried out by a taxable
person resident abroad. However, Member States
may require that the supplier of services shall be
held jointly and severally liable for payment of
the tax;
(c) any person who mentions the value added tax on
an invoice or other document serving as invoice;77/388/EEC
[cf. Article 28g]
77/388/EEC - - - I
352. on importation: the person or persons designated or
accepted as being liable by the Member States into
which the goods are imported.
TITLE XIII
OBLIGATIONS OF PERSONS LIABLE FOR PAYMENT
Article 22
Obligations under the internal system
1. Every taxable person shall state when his activity as a
taxable person commences, changes or ceases.
2. Every taxable person shall keep accounts in sufficient
detail to permit application of the value added tax and in-
spection by the tax authority.
3. (a) Every taxable person shall issue an invoice, or
other document serving as invoice in respect of
all goods and services supplied by him to anoth-
er taxable person, and shall keep a copy thereof.
Every taxable person shall likewise issue an in-
voice in respect of payments on account made to
him by another taxable person before the supply
of goods or services is effected or completed.
(b) The invoice shall state clearly the price exclusive
of tax and the corresponding tax at each rate as
well as any exemptions.
(c) The Member States shall determine the criteria
for considering whether a document serves as an
invoice.
4. Every taxable person shall submit a return within an
interval to be determined by each Member State. This in-
terval may not exceed two months following the end of
each tax period. The tax period may be fixed by Member
States as a month, two months, or a quarter. However,
Member States may fix different periods provided that
these do not exceed a year
The return must set out all the information needed to
calculate the tax that has become chargeable and the de-ductions to be made, including, where appropriate, and in
so far as it seems necessary for the establishment of the
tax basis, the total amount of the transactions relative to
such tax and deductions, and the total amount of the
exempted supplies.
5. Every taxable person shall pay the net amount of the
v a l u ea d d e dt a xw h e ns u b m i t t i n gt h er e t u r n .T h eM e m b e r
States may, however, fix a different date for the payment
of the amount or may demand an interim payment.77/388/EEC
[cf. Article 28h]
77/388/EEC - - - I
366. Member States may require a taxable person to sub-
mit a statement, including the information specified in
paragraph 4, and concerning all transactions carried out
the preceding year. This statement must provide all the
information necessary for any adjustments.
7. Member States shall take the necessary measures to
ensure that those persons who, in accordance with Article
21 (1) (a) and (b), are considered to be liable to pay the
tax instead of a taxable person established in another
country or who are jointly and severally liable for the pay-
ment, shall comply with the above obligations relating to
declaration and payment.
8. Without prejudice to the provisions to be adopted
pursuant to Article 17 (4), Member States may impose
other obligations which they deem necessary for the cor-
rect levying and collection of the tax and for the preven-
tion of fraud.
9. Member States may release taxable persons:
— from certain obligations,
— from all obligations where those taxable persons carry
out only exempt transactions,
— from the payment of the tax due where the amount is
insignificant.
Article 23
Obligations in respect of imports
As regards imported goods, Member States shall lay down
the detailed rules for the making of the declarations and
payments.
In particular, Member States may provide that the value
added tax payable on importation of goods by taxable per-
sons or persons liable to tax or certain categories of these
two need not be paid at the time of importation, on condi-
tion that the tax is mentioned as such in a return to be
submitted under Article 22 (4).77/388/EEC
77/388/EEC - - - I
37TITLE XIV
SPECIAL SCHEMES
Article 24
Special scheme for small undertakings
1. Member States which might encounter difficulties in
applying the normal tax scheme to small undertakings by
reason of their activities or structure shall have the option,
under such conditions and within such limits as they may
set but subject to the consultation provided for in Article
29, of applying simplified procedures such as flat-rate
schemes for charging and collecting the tax provided they
do not lead to a reduction thereof.
2. Until a date to be fixed by the Council acting unani-
mously on a proposal from the Commission, but which
shall not be later than that on which the charging of tax
on imports and the remission of tax on exports in trade
between the Member States are abolished:
(a) Member States which have made use of the option
under Article 14 of the second Council Directive of
11 April 1967 to introduce exemptions or graduated
tax relief may retain them and the arrangements for
applying them if they conform with the value added
tax system.
Those Member States which apply an exemption from
tax to taxable persons whose annual turnover is less
than the equivalent in national currency of 5 000 Eu-
ropean units of account at the conversion rate of the
day on which this Directive is adopted, may increase
this exemption up to 5 00 European units of account.
Member States which apply graduated tax relief may
neither increase the ceiling of the graduated tax re-
liefs nor render the conditions for the granting of itmore favourable;
(b) Member States which have not made use of this op-
tion may grant an exemption from tax to taxable per-
sons whose annual turnover is at the maximum equal
to the equivalent in national currency of 5 000 Euro-
pean units of account at the conversion rate of the
day on which this Directive is adopted; where ap-
propriate, they may grant graduated tax relief to tax-
able persons whose annual turnover exceeds the ceil-
ing fixed by the Member States for the application of
exemption;77/388/EEC
[cf. Article 28i]
77/388/EEC - - - I
38(c) Member States which apply an exemption from tax to
taxable persons whose annual turnover is equal to or
higher than the equivalent in national currency of
5 000 European units of account at the conversion
rate of the day on which this Directive is adopted,
may increase it in order to maintain its value in real
terms.
3. The concepts of exemption and graduated tax relief
shall apply to the supply of goods and services by small
undertakings.
Member States may exclude certain transactions from the
arrangements provided for in paragraph 2. The provisions
of paragraph 2 shall not, in any case, apply to the transac-
tions referred to in Article 4 (3).
4. The turnover which shall serve as a reference for the
purposes of applying the provisions of paragraph 2 shall
consist of the amount, exclusive of value added tax, ofgoods and services supplied as defined in Articles 5 and 6,
to the extent that they are taxed, including transactions
exempted with refund of tax previously paid in accordance
with Article 28 (2), and the amount of the transactions
exempted pursuant to Article 15, the amount of real prop-
erty transactions, the financial transactions referred to in
Article 13 B (d), and insurance services, unless these trans-
actions are ancillary transactions.
However, disposals of tangible or intangible capital assets
of an undertaking shall not be taken into account for the
purposes of calculating turnover.
5. T axable persons exempt from tax shall not be entitled
to deduct tax in accordance with the provisions of Article
17, nor to show the tax on their invoices or on any other
documents serving as invoices.
6. T axable persons eligible for exemption from tax may
opt either for the normal value added tax scheme or for
the simplified procedures referred to in paragraph 1. In
this case they shall be entitled to any graduated tax relief
which may be laid down by national legislation.
7. Subject to the application of paragraph 1, taxable per-
sons enjoying graduated relief shall be treated as taxable
persons subject to the normal value added tax scheme.
8. At four-yearly intervals, and for the first time on 1
January 1982, and after consultation of the Member
States, the Commission shall report to the Council on the
application of the provisions of this Article. It shall as far
as may be necessary, and taking into account the need to
ensure the long-term convergence of national regulations,attach to this report proposals for:77/388/EEC
77/388/EEC - - - I
39(a) improvements to be made to the special scheme for
small undertakings;
(b) the adaptation of national systems as regards exemp-
tions and graduated value added tax relief;
(c) the adaptation of the limit of 5 000 European units of
account mentioned in paragraph 2.
9. The Council will decide at the appropriate time
whether the realization of the objective referred to in Ar-
ticle 4 of the first Council Directive of 11 April 1967 re-
quires the introduction of a special scheme for small un-
dertakings and will, if appropriate, decide on the limits and
common implementing conditions of this scheme. Until the
introduction of such a scheme, Member States may retain
their own special schemes which they will apply in accord-
ance with the provisions of this Article and of subsequent
acts of the Council.
Article 25
Common flat-rate scheme for farmers
1. Where the application to farmers of the normal value
added tax scheme, or the simplified scheme provided for in
Article 24, would give rise to difficulties, Member States
may apply to farmers a flat-rate scheme tending to offsetthe value added tax charged on purchases of goods and
services made by the flat-rate farmers pursuant to this Ar-
ticle.
2. For the purposes of this Article the following defini-
tions shall apply:
— ‘farmer’: a taxable person who carries on his activity
in one of the undertakings defined below,
— ‘agricultural, forestry or fisheries undertakings’: an un-
dertaking considered to be such by each Member
State within the framework of the production acti-
vities listed in Annex A,
— ‘flat-rate farmer’: a farmer subject to the flat-rate
scheme provided for in paragraphs 3 et seq .,
— ‘agricultural products’: goods produced by an agricul-
tural, forestry or fisheries undertaking in each
Member State as a result of the activities listed in
Annex A,
— ‘agricultural service’: any service as set out in Annex
B supplied by a farmer using his labour force and/or
by means of the equipment normally available on the
agricultural, forestry or fisheries undertaking operated
by him,77/388/EEC
[cf. Article 28j]
77/388/EEC - - - I
40— ‘value added tax charge on inputs’: the amount of the
total value added tax attaching to the goods and ser-
vices purchased by all agricultural, forestry and fish-
eries undertakings of each Member State subject to
the flat-rate scheme where such tax would be deduct-
ible under Article 17 by a farmer subject to the nor-
mal value added tax scheme,
— ‘flat-rate compensation percentages’: the percentages
fixed by Member States in accordance with paragraph
3 and applied by them in the cases specified in para-
graph 5 to enable flat-rate farmers to offset at a fixed
rate the value added tax charge on inputs,
— ‘flat-rate compensation’: the amount arrived at by ap-
plying the flat-rate compensation percentage provided
for in paragraph 3 to the turnover of the flat-rate
farmer in the cases referred to in paragraph 5.
3. Member States shall fix the flat-rate compensation
percentages, where necessary, and shall notify the Commis-
sion before applying them. Such percentages shall be based
on macro-economic statistics for flat-rate farmers alone for
the preceding three years. They may not be used to obtain
for flat-rate farmers refunds greater than the value added
tax charges on inputs. Member States shall have the option
of reducing such percentages to a nil rate. The percentage
may be rounded up or down to the nearest half point.
Member States may fix varying flat-rate compensation per-
centages for forestry, for the different sub-divisions of agri-
culture and for fisheries.
4. Member States may release flat-rate farmers from the
obligations imposed upon taxable persons by Article 22.
5. The flat-rate percentages provided for in paragraph 3
shall be applied to the price, exclusive of tax, of the agri-
cultural products and agricultural services supplied by the
flat-rate farmers to taxable persons other than a flat-rate
farmer. This compensation shall exclude all other forms of
deduction.
6. Member States may provide for the flat-rate com-
pensation to be paid:77/388/EEC
77/388/EEC - - - I
41(a) either by the taxable person to whom the goods or
services are supplied. In this case, the taxable person
to whom the goods or services are supplied shall be
authorized, following the procedure laid down by the
Member States, to deduct from the value added tax
for which he is liable, the amount of the flat-rate
compensation he has paid to the flat-rate farmers;
(b) or by the public authorities.
7. Member States shall make all necessary provisions to
check properly the payment of the flat-rate compensation
to the flat-rate farmers.
8. As regards all supplies of agricultural products and
agricultural services other than those covered by paragraph
5, the flat-rate compensation is deemed to be paid by the
p u r c h a s e ro rc u s t o m e r .
9 . E a c hM e m b e rS t a t em a ye x c l u d ef r o mt h ef l a t - r a t e
scheme certain categories of farmers and farmers forwhom the application of the normal value added tax
scheme, or the simplified scheme provided for in Article
24 (1), would not give rise to administrative difficulties.
10. Every flat-rate farmer may opt, subject to the rules
and conditions to be laid down by each Member State, for
application of the normal value added tax scheme or, as
the case may be, the simplified scheme provided for in Ar-
ticle 24 (1).
11. The Commission shall, before the end of the fifth
year following the entry into force of this Directive, pres-
ent to the Council new proposals concerning the applica-
tion of the value added tax to transactions in respect of
agricultural products and services.
12. When they take up the option provided for in this
Article the Member States shall fix the uniform basis of
assessment of the value added tax in order to apply the
scheme of own resources using the common method of cal-
culation in Annex C.
Article 26
Special scheme for travel agents
1. Member States shall apply value added tax to the
operations of travel agents in accordance with the provi-
sions of this Article, where the travel agents deal with cus-
tomers in their own name and use the supplies and ser-
vices of other taxable persons in the provision of travel
facilities. This Article shall not apply to travel agents who
are acting only as intermediaries and accounting for tax in
accordance with Article 11 A (3) (c). In this Article travel
agents include tour operators.77/388/EEC
77/388/EEC - - - I
422. All transactions performed by the travel agent in re-
spect of a journey shall be treated as a single service sup-
plied by the travel agent to the traveller. It shall be taxable
in the Member State in which the travel agent has estab-
lished his business or has a fixed establishment from which
the travel agent has provided the services. The taxable
amount and the price exclusive of tax, within the meaning
of Article 22 (3) (b), in respect of this service shall be the
travel agent’s margin, that is to say, the difference between
the total amount to be paid by the traveller, exclusive of
value added tax, and the actual cost to the travel agent of
supplies and services provided by other taxable persons
where these transactions are for the direct benefit of the
traveller.
3. If transactions entrusted by the travel agent to other
taxable persons are performed by such persons outside the
Community, the travel agent’s service shall be treated asan exempted intermediary activity under Article 15 (14).
Where these transactions are performed both inside and
outside the Community, only that part of the travel agent’s
service relating to transactions outside the Community may
be exempted.
4. T ax charged to the travel agent by other taxable per-
sons on the transactions described in paragraph 2 which
are for the direct benefit of the traveller, shall not be eli-
gible for deduction or refund in any Member State.
Article 26a
Special arrangements applicable to second-hand goods,
works of art, collectors’ items and antiques
A. Definitions
For the purposes of this Article, and without preju-
dice to other Community provisions:
(a) works of art shall mean the objects referred to in
(a) of Annex I.
However, Member States shall have the option
of not considering as ‘works of art’ the items
mentioned in the final three indents in (a) in
Annex I;
(b) collector s items shall mean the objects referred to
in (b) of Annex I;
(c) antiques shall mean the objects referred to in (c)
of Annex I;77/388/EEC
94/5/EC
77/388/EEC - - - I
43(d) second-hand goods shall mean tangible movable
property that is suitable for further use as it is or
after repair, other than works of art, collectors’
items or antiques and other than precious metals
or precious stones as defined by the Member
States;
(e) taxable dealer shall mean a taxable person who,
in the course of his economic activity, purchases
or acquires for the purposes of his undertaking,
or imports with a view to resale, second-hand
goods and/or works of art, collectors’ items or
antiques, whether that taxable person is acting
for himself or on behalf of another person pur-
suant to a contract under which commission is
p a y a b l eo np u r c h a s eo rs a l e ;
(f) organizer of a sale by public auction shall mean
any taxable person who, in the course of his eco-nomic activity, offers goods for sale by public
auction with a view to handing them over to the
highest bidder;
(g) principal of an organizer of a sale by public auc-
tion shall mean any person who transmits goods
to an organizer of a sale by public auction under
a contract under which commission is payable on
a sale subject to the following provisions:
— the organizer of the sale by public auction
offers the goods for sale in his own name
b u to nb e h a l fo fh i sp r i n c i p a l ,
— the organizer of the sale by public auction
hands over the goods, in his own name but
on behalf of his principal, to the highest
bidder at the public auction.
B. Special arrangements for taxable dealers
1. In respect of supplies of second-hand goods,
works of art, collectors’ items and antiques effected
by taxable dealers, Member States shall apply special
arrangements for taxing the profit margin made by
the taxable dealer, in accordance with the following
provisions.
2. The supplies of goods referred to in paragraph 1
shall be supplies, by a taxable dealer, of second-hand
goods, works of art, collectors’ items or antiques sup-
plied to him within the Community:
— by a non-taxable person,
or
— by another taxable person, in so far as the supply
of goods by that other taxable person is exempt
in accordance with Article 13 (B) (c),94/5/EC
77/388/EEC - - - I
44or
— by another taxable person in so far as the supply
of goods by that other taxable person qualifies
for the exemption provided for in Article 24 and
involves capital assets,
or
— by another taxable dealer, in so far as the supply
of goods by that other taxable dealer was subject
to value added tax in accordance with these
special arrangements.
3. The taxable amount of the supplies of goods re-
ferred to in paragraph 2 shall be the profit margin
made by the taxable dealer, less the amount of value
added tax relating to the profit margin. That profit
margin shall be equal to the difference between the
selling price charged by the taxable dealer for the
goods and the purchase price.
For the purposes of this paragraph, the following defi-
nitions shall apply:
— selling price shall mean everything which consti-
tutes the consideration, which has been, or is to
be, obtained by the taxable dealer from the pur-
chaser or a third party, including subsidies direct-
ly linked to that transaction, taxes, duties, levies
and charges and incidental expenses such as
commission, packaging, transport and insurance
costs charged by the taxable dealer to the pur-
chaser but excluding the amounts referred to in
Article 11 (A) (3),
— purchase price shall mean everything which
constitutes the consideration defined in the first
indent, obtained, or to be obtained, from the tax-
able dealer by his supplier.
4. Member States shall entitle taxable dealers to
opt for application of the special arrangements to
supplies of:
(a) works of art, collectors’ items or antiques which
they have imported themselves;
(b) works of art supplied to them by their creators
or their successors in title;
(c) works of art supplied to them by a taxable per-
son other than a taxable dealer where the supply
by that other taxable person was subject to the
reduced rate pursuant to Article 12 (3) (c).94/5/EC
77/388/EEC - - - I
45Member States shall determine the detailed rules for
exercising this option which shall in any event cover a
period at least equal to two calendar years.
If the option is taken up, the taxable amount shall be
determined in accordance with paragraph 3. For sup-
plies of works of art, collectors’ items or antiques
which the taxable dealer has imported himself, the
purchase price to be taken into account in calculating
the margin shall be equal to the taxable amount on
importation, determined in accordance with Article 11
(B), plus the value added tax due or paid on importa-
tion.
5. Where they are effected in the conditions laid
down in Article 15, the supplies of second-hand
goods, works of art, collectors’ item or antiques sub-
ject to the special arrangements for taxing the margin
shall be exempt.
6. T axable persons shall not be entitled to deduct
f r o mt h et a xf o rw h i c ht h e ya r el i a b l et h ev a l u ea d d e d
tax due or paid in respect of goods which have been,
or are to be, supplied to them by a taxable dealer, in
so far as the supply of those goods by the taxable
dealer is subject to the special arrangements for tax-
ing the margin.
7. In so far as goods are used for the purpose of
supplies by him subject to the special arrangements
for taxing the margin, the taxable dealer shall not be
entitled to deduct from the tax for which he is liable:
(a) the value added tax due or paid in respect of
works af (SIC! of) art, collectors’ items or an-
tiques which he has imported himself;
(b) the value added tax due or paid in respect of
works of art which have been, or are to be, sup-
plied to him by their creators or their successors
in title;
(c) the value added tax due or paid in respect of
works of art which have been, or are to be, sup-
plied to him by a taxable person other than a
taxable dealer.94/5/EC
77/388/EEC - - - I
468. Where he is led to apply both the normal ar-
rangements for value added tax and the special ar-
rangements for taxing the margin, the taxable dealer
must follow separately in his accounts the transactions
falling under each of these arrangements, according to
rules laid down by the Member States,
9. The taxable dealer may not indicate separately
on the invoices which he issues, or on any other docu-
ment serving as an invoice, tax relating to supplies of
goods which he makes subject to the special arrange-
ments for taxing the margin.
10. In order to simplify the procedure for charging
the tax and subject to the consultation provided for in
Article 29, Member States may provide that, for cer-
tain transactions or for certain categories of taxable
dealers, the taxable amount of supplies of goods sub-
ject to the special arrangements for taxing the marginshall be determined for each tax period during which
the taxable dealer must submit the return referred to
in Article 22 (4).
In that event, the taxable amount for supplies of
goods to which the same rate of value added tax is
applied shall be the total margin made by the taxable
dealer less the amount of value added tax relating to
that margin.
The total margin shall be equal to the difference be-
tween:
— the total amount of supplies of goods subject to
the special arrangements for taxing the margin
effected by the taxable dealer during the period;
that amount shall be equal to the total selling
prices determined in accordance with paragraph
3,
and
— the total amount of purchases of goods as re-
ferred to in paragraph 2 effected, during that pe-
riod, by the taxable dealer; that amount shall be
equal to the total purchase prices determined in
accordance with paragraph 3.
Member States shall take the necessary measures to
ensure that the taxable persons concerned do not en-
joy unjustfied (SIC! unjustified) advantages or sustain
unjustified loss.94/5/EC
77/388/EEC - - - I
4711. The taxable dealer may apply the normal value
added tax arrangements to any supply covered by the
special arrangements pursuant to paragraph 2 or 4.
Where the taxable dealer applies the normal value
added tax arrangements to:
(a) the supply of a work of art, collectors’ item or
antique which he has imported himself, he shall
be entitled to deduct from his tax liability the
value added tax due or paid on the import of
those goods;
(b) the supply of a work of art supplied to him by
its creator or his successors in title, he shall be
entitled to deduct from his tax liability the value
added tax due or paid for the work of art sup-
plied to him;
(c) the supply of a work of art supplied to him by a
taxable person other than a taxable dealer, heshall be entitled to deduct from his tax liability
the value added tax due or paid for the work of
art supplied to him.
T h i sr i g h tt od e d u c ts h a l la r i s ea tt h et i m ew h e nt h e
tax due for the supply in respect of which the taxable
dealer opts for application of the normal value added
tax arrangements become chargeable.
C. Special arrangements for sales by public auction
1. By way of derogation from B, Member States
may determine, in accordance with the following pro-
visions, the taxable amount of supplies of second-hand
goods, works of art, collectors’ items or antiques ef-
fected by an organizer of sales by public auction, act-
ing in his own name, pursuant to a contract under
which commission is payable on the sale of those
goods by public auction, on behalf of:
— a non-taxable person,
or
— another taxable person, in so far as the supply of
goods, within the meaning of Article 5 (4) (c), by
that other taxable person is exempt in accord-
ance with Article 13 (B) (c),
or
— another taxable person, in so far as the supply of
goods, within the meaning of Article 5 (4) (c), by
that other taxable person qualifies for the
exemption provided for in Article 24 and in-
volves capital assets,
or94/5/EC
77/388/EEC - - - I
48— a taxable dealer, in so far as the supply of goods,
within the meaning of Article 5 (4) (c), by that
other taxable dealer, is subject to tax in accord-
ance with the special arrangements for taxing the
margin provided for in B.
2. The taxable amount of each supply of goods re-
ferred to in paragraph 1 shall be the total amount
invoiced in accordance with paragraph 4 to the pur-
chaser by the organizer of the sale by public auction,
less:
— the net amount paid or to be paid by the organ-
izer of the sale by public auction to his principal,
determined in accordance with paragraph 3,
and
— the amount of the tax due by the organizer of
the sale by public auction in respect of his sup-
ply.
3. The net amount paid or to be paid by the orga-
nizer of the sale by public auction to his principal
s h a l lb ee q u a lt ot h ed i f f e r e n c eb e t w e e n :
— the price of the goods at public auction,
and
— the amount of the commission obtained or to be
obtained by the organizer of the sale by public
auction from his principal, under the contract
whereby commission is payable on the sale.
4. The organizer of the sale by public auction must
issue to the purchaser an invoice or a document in
lieu itemizing:
— the auction price of the goods,
— taxes, dues, levies and charges,
— incidental expenses such as commission, packing,
transport and insurance costs charged by the or-
ganizer to the purchaser of the goods.
That invoice must not indicate any value added tax
separately.
5. The organizer of the sale by public auction to
whom the goods were transmitted under a contract
whereby commission is payable on a public auction
sale must issue a statement to his principal.
T h a ts t a t e m e n tm u s ti t e m i z et h ea m o u n to ft h et r a n s -
action, i.e. the auction price of the goods less the
amount of the commission obtained or to be obtained
from the principal.
A statement so drawn up shall serve as the invoice
which the principal, where he is a taxable person,must issue to the organizer of the sale by public auc-
tion in accordance with Article 22 (3).94/5/EC
77/388/EEC - - - I
496. Organizers of sales by public auction who supply
goods under the conditions laid down in paragraph 1
must indicate in their accounts, in suspense accounts:
— the amounts obtained or to be obtained from the
purchaser of the goods,
— the amount reimbursed or to be reimbursed to
the vendor of the goods.
These amounts must be duly substantiated.
7 . T h es u p p l yo fg o o d st oat a x a b l ep e r s o nw h oi s
an organizer of sales by public auction shall be re-
garded as being effected when the sale of those goods
by public auction is itself effected.
D. Transitional arrangements for the taxation of trade be-
tween Member States
During the period referred to in Article 28l (SIC!
281), Member States shall apply the following provi-
sions:
(a) supplies of new means of transport, within the
meaning of Article 28a (2), effected within the
conditions laid down in Article 28c (A) shall be
excluded from the special arrangements provided
for in B and C;
(b) by way of derogation from Article 28a (1) (a),
intra-Community acquisitions of second-hand
goods, works of art, collectors’ items or antiques
shall not be subject to value added tax where the
vendor is a taxable dealer acting as such and the
goods acquired have been subject to tax in the
Member State of departure of the dispatch or
transport, in accordance with the special arrange-
ments for taxing the margin provided for in B, or
where the vendor is an organizer of sales by
public auction acting as such and the goods ac-
quired have been subject to tax in the Member
State of departure of the dispatch or transport,
in accordance with the special arrangements pro-
vided for in C;
(c) Articles 28b (B) and 28c (A) (a), (c) and (d)
shall not apply to supplies of goods subject to
value added tax in accordance with either of the
special arrangements laid down in B and C.94/5/EC
77/388/EEC - - - I
50TlTLE XV
SIMPLIFICATION PROCEDURES
Article 27
1. The Council, acting unanimously on a proposal from
the Commission, may authorize any Member State to in-
troduce special measures for derogation from the provi-
sions of this Directive, in order to simplify the procedure
for charging the tax or to prevent certain types of tax evas-
ion or avoidance. Measures intended to simplify the pro-
cedure for charging the tax, except to a negligible extent,
may not affect the amount of tax due at the final con-
sumption stage.
2. A Member State wishing to introduce the measures
referred to in paragraph 1 shall inform the Commission of
them and shall provide the Commission with all relevant
information.
3. The Commission shall inform the other Member
States of the proposed measures within one month.
4. The Council’s decision shall be deemed to have been
adopted if, within two months of the other Member States
being informed as laid down in the previous paragraph,
neither the Commission nor any Member State has re-
quested that the matter be raised by the Council.
5. Those Member States which apply on 1 January 1977
special measures of the type referred to in paragraph 1
above may retain them providing they notify the Commis-
sion of them before 1 January 1978 and providing that
where such derogations are designed to simplify the pro-
cedure for charging tax they conform with the requirement
laid down in paragraph 1 above.
TITLE XVI
TRANSITIONAL PROVISIONS
Article 28
1. Any provisions brought into force by the Member
States under the provisions of the first four indents of Ar-
ticle 17 of the second Council Directive of 11 April 1967
shall cease to apply, in each Member State, as from the
respective dates on which the provisions referred to in the
second paragraph of Article 1 of this Directive come into
force.
1a. Until a date which may not be later than 30 June1999, the United Kingdom of Great Britain and Northern
Ireland may, for imports of works of art, collectors’ items
or antiques which qualified for an exemption on 1 January
1993, apply Article 11 (B) (6) in such a way that the value
added tax due on importation is, in any event, equal to
2,5% of the amount determined in accordance with Article
11 (B) (1) to (4).77/388/EEC
94/5/EC
77/388/EEC - - - I
512. Notwithstanding Article 12 (3), the following provi-
sions shall apply during the transitional period referred to
in Article 281.
(a) Exemptions with refund of the tax paid at the preced-
ing stage and reduced rates lower than the minimum
rate laid down in Article 12 (3) in respect of the re-
duced rates, which were in force on 1 January 1991
and which are in accordance with Community law,
and satisfy the conditions stated in the last indent of
Article 17 of the second Council Directive of 11 April
1967, may be maintained.
Member States shall adopt the measures necessary to
ensure the determination of own resources relating to
these operations.
In the event that the provisions of this paragraph
create for Ireland distortions of competition in the
supply of energy products for heating and lighting,Ireland may, on specific request, be authorized by the
Commission to apply a reduced rate to such supplies,
in accordance with Article 12 (3). In that case, Ire-
land shall submit its request to the Commission to-
gether with all necessary information. If the Commis-
sion has not taken a decision within three months of
receiving the request, Ireland shall be deemed to be
authorized to apply the proposed reduced rates.
(b) Member States which, at 1 January 1991 in accord-
ance with Community law, applied exemptions with
refund of tax paid at the preceding stage, or reduced
rates lower than the minimum laid down in Article 12
(3) in respect of the reduced rates, to goods and ser-
vices other than those specified in Annex H, may
apply the reduced rate or one of the two reduced
rates provided for in Article 12 (3) to any such sup-
plies.
(c) Member States which under the terms of Article 12
(3) will be obliged to increase their standard rate as
applied at 1 January 1991 by more than 2 %, may
apply a reduced rate lower than the minimum laid
down in Article 12 (3) in respect of the reduced rate
to supplies of categories of goods and services speci-
fied in Annex H. Furthermore, those Member States
may apply such a rate to restaurant services,
children’s clothing, children’s footwear and housing.
Member States may not introduce exemptions with re-
fund of the tax at the preceding stage on the bais
(SIC! basis) of this paragraph.92/77/EEC
77/388/EEC - - - I
52(d) Member States which at 1 January 1991 applied a re-
duced rate to restaurant services, children’s clothing,
children’s footwear and housing, may continue to
apply such a rate to such supplies.
(e) Member States which at 1 January 1991 applied a re-
duced rate to supplies of goods and services other
than those specified in Annex H may apply the re-
duced rate or one of the two reduced rates provided
for in Article 12 (3) to such supplies, provided that
t h er a t ei sn o tl o w e rt h a n1 2% .
This provision may not apply to supplies of second-hand goods, works of art, collectors’ items or antiques
subject to value added tax in accordance with one of
the special arrangements provided for an Article 26a
(B) and (C).
(f) The Hellenic Republic may apply VAT rates up to
30 % lower than the corresponding rates applied inmainland Greece in the departments of Lesbos,
Chios, Samos, the Dodecanese and the Cyclades, and
on the following islands in the Aegean: Thasos,
Northern Sporades, Samothrace and Skiros.
(g) On the basis of a report from the Commission, the
Council shall, before 31 December 1994, reexamine
the provisions of subparagraphs (a) to (f) above in
relation to the proper functioning of the internal
market in particular. In the event of significant distor-
tions of competition arising, the Council, acting unani-
mously on a proposal from the Commission, shall
adopt appropriate measures.
(h) Member States which, on 1 January 1993, were avail-
ing themselves of the option provided for in Article 5
(5) (a) as in force on that date, may apply to supplies
under a contract to make up work the rate applicable
to the goods after making up.
For the purposes of applying this provision, supplies
under a contract to make up work shall be deemed to
be delivery by a contractor to his customer of mov-
able property made or assembled by the contractor
from materials or objects entrusted to him by the cus-
tomer for this purpose, whether or not the contractor
has provided any part of the materials used.
(i) Member States may apply a reduced rate to supplies
of live plants (including bulbs, roots and the like, cut
flowers and ornamental foliage) and wood for use as
firewood.92/77/EEC
94/5/EC
92/77/EEC
95/7/EC
96/42/EC
77/388/EEC - - - I
533. During the transitional period referred to in para-
graph 4, Member States may:
(a) continue to subject to tax the transactions exempt
under Article 13 or 15 set out in Annex E to this
Directive;
(b) continue to exempt the activities set out in Annex F
under conditions existing in the Member State con-
cerned;
(c) grant to taxable persons the option for taxation of
exempt transactions under the conditions set out in
Annex G;
(d) continue to apply provisions derogating from the prin-
ciple of immediate deduction laid down in the first
paragraph of Article 18 (2);
(e) continue to apply measures derogating from the
provisions of Articles 6( 4 )a n d1 1A( 3 )( c ) ;
(f) provide that for supplies of buildings and building
land purchased for the purpose of resale by a taxable
person for whom tax on the purchase was not deduct-
ible, the taxable amount shall be the difference be-
t w e e nt h es e l l i n gp r i c ea n dt h ep u r c h a s ep r i c e ;
(g) by way of derogation from Articles 17 (3) and 26 (3),
continue to exempt without repayment of input tax
the services of travel agents referred to in Article 26
(3). This derogation shall also apply to travel agents
acting in the name and on account of the traveller.
3a. Pending a decision by the Council, which, under Ar-ticle 3 of Directive 89/465/EEC (
1), is to act on the abol-
ition of the transitional derogations provided for in para-
graph 3, Spain shall be authorized to exempt the
transactions referred to in point 2 of Annex F in respect of
services rendered by authors and the transactions referred
to in points 23 and 25 of Annex F.
4. The transitional period shall last initially for five yearsas from 1 January 1978. At the latest six months before
the end of this period, and subsequently as necessary, the
Council shall review the situation with regard to the der-
ogations set out in paragraph 3 on the basis of a report
from the Commission and shall unanimously determine on
a proposal from the Commission, whether any or all of
these derogations shall be abolished.
(1) OJ No L 226, 3. 8. 1989, p. 21.77/388/EEC
94/5/EC - - - deleted
91/680/EEC
77/388/EEC
77/388/EEC - - - I
545. At the end of the transitional period passenger trans-
port shall be taxed in the country of departure for that
part of the journey taking place within the Community ac-
cording to the detailed rules of procedure to be laid down
by the Council acting unanimously on a proposal from the
Commission.
TITLE XVI a
TRANSITIONAL ARRANGEMENTS FOR THE TAXATION OF
TRADE BETWEEN MEMBER STATES
Article 28a
Scope
1. The following shall also be subject to value added tax:
a) intra-Community acquisitions of goods for consider-
ation within the territory of the country by a taxable
person acting as such or by a non-taxable legal person
where the vendor is a taxable person acting as such
who is not eligible for the tax exemption provided for
in Article 24 and who is not covered by the arrange-
ments laid down in the second sentence of Article 8
(1) (a) or in Article 28b (B) (1).
By way of derogation from the first subparagraph, in-tra-Community acquisitions of goods made under ther
(SIC! the) conditions set out in paragraph 1a by a
taxable person or non-taxable legal person shall not
be subject to value added tax.
Member States shall grant taxable persons and non- - -t a x a b l el e g a lp e r s o n se l i g i b l eu n d e rt h es e c o n ds u b -paragraph the right to opt for the general scheme laid
down in the first subparagraph. Member States shall
determine the detailed rules for the exercise of that
option, which shall in any case apply for two calendar
years;
(b) intra-Community acquisitions of new means of trans-
port effected for consideration within the country by
taxable persons or non-taxable legal persons who
qualify for the derogation provided for in the second
subparagraph of (a) or by any other non-taxable per-
son.
(c) the intra-Community acquisition of goods which are
subject to excise duties effected for consideration
within the territory of the country by a taxable person
or a non-taxable legal person who qualifies for the
derogation referred to in the second subparagraph of
point (a), and for which the excise duties become
chargeable within the territory of the country pursu-
ant to Directive 92/12/EEC (1).
(1) OJ No L 76, 23. 3. 1992, p. 1.77/388/EEC
91/680/EEC
92/111/EEC
91/680/EEC
92/111/EEC
77/388/EEC - - - I
551a. The following shall benefit from the derogation set
out in the second subparagraph of paragraph 1 (a):
(a) intra-Community acquisitions of goods whose supply
within the territory of the country would be exempt
pursuant to Article 15 (4) to (10);
(b) intra-Community acquisitions of goods other than
those at (a), made:
— by a taxable person for the purpose of his agri-
cultural, forestry or fisheries undertaking, subject
to the flat-rate scheme set out in Article 25, by a
taxable person who carries out only supplies of
goods or services in respect of which value added
tax is not deductible, or by a non-taxable legal
person,
— for a total amount not exceeding, during the cur-
rent calendar year, a threshold which the
Member States shall determine but which maynot be less than the equivalent in national
currency of ECU 10 000,
and
— provided that the total amount of intra-Com-
munity acquisitions of goods did not, during the
previous calendar year, exceed the threshold re-
ferred to in the second indent.
The threshold which serves as the reference for
the application of the above shall consist of the
total amount, exclusive of value added tax due or
paid in the Member State from which the goods
are dispatched or transported, of intra-Communi-
ty acquisitions of goods other than new means of
transport and other than goods subject to excise
duty.
2. For the purposes of this Title:
(a) the following shall be considered as ‘means of trans-
port’: vessels exceeding 7,5 metres in length, aircraft
the take-off weight of which exceeds 1550 kilograms
and motorized land vehicles the capacity of which ex-
ceeds 48 cubic centimetres or the power of which ex-
ceeds 7,2 kilowatts, intended for the transport of per-
sons or goods, except for the vessels and aircraft
referred to in Article 15 (5) and (6);
(b) the means of transport referred to in (a) shall not be
considered to be ‘new’ where both of the following
conditions are simultaneously fulfilled:92/111/EEC
91/680/EEC
94/5/EC
77/388/EEC - - - I
56— they were supplied more than three months after
the date of first entry into service. However, this
period shall be increased to six months for the
motorized land vehicles defined in (a),
— they have travelled more than 6 000 kilometres
in the case of land vehicles, sailed for more than
100 hours in the case of vessels, or flown for
more than 40 hours in the case of aircraft.
Member States shall lay down the conditions under
which the above facts can be regarded as established.
3. ‘Intra-Community acquisition of goods’ shall mean ac-quisition of the right to dispose as owner of movable tan-
gible property dispatched or transported to the person ac-
quiring the goods by or on behalf of the vendor or the
person acquiring the goods to a Member State other than
that from which the goods are dispatched or transported.
Where goods acquired by a non-taxable legal person are
dispatched or transported from a third territory and im-
ported by that non-taxable legal person into a Member
State other than the Member State of arrival of the goods
dispatched or transported, the goods shall be deemed to
have been dispatched or transported from the Member
State of import. That Member State shall grant the im-
porter as defined in Article 21 (2) a refund of the value
added tax paid in connection with the importation of the
goods in so far as the importer establishes that his acquisi-
tion was subject to value added tax in the Member State
of arrival of the goods dispatched or transported.
4. Any person who from time to time supplies a new
means of transport under the conditions laid down in Ar-
ticle 28c (A) shall also be regarded as a taxable person.
The Member State within the territory of which the supply
is effected shall grant the taxable person the right of de-
duction on the basis of the following provisions:
— the right of deduction shall arise and may be exer-
cised only at the time of the supply,
— the taxable person shall be authorized to deduct the
value added tax included in the purchase price or
paid on the importation or intra-Community acquisi-
tion of the means of transport, up to an amount not
exceeding the tax for which he would be liable if the
supply were not exempt.
Member States shall lay down detailed rules for the imple-
mentation of these provisions.
5. The following shall be treated as supplies of
goods
effected for consideration:94/5/EC
91/680/EEC
95/7/EC
77/388/EEC - - - I
57(b) the transfer by a taxable person of goods from his
undertaking to another Member State.
The following shall be regarded as having been trans-
ferred to another Member State: any tangible proper-
ty dispatched or transported by or on behalf of the
taxable person out of the territory defined in Article 3
but within the Community for the purposes of his un-
dertaking, other than for the purposes of one of the
following transactions:
— the supply of the goods in question by the tax-
able person within the territory of the Member
State of arrival of the dispatch or transport un-
der the conditions laid down in the second sen-
tence of Article 8 (1) (a) and in Article 28b (B)
(1),
— the supply of the goods in question by the tax-
able person under the conditions laid down in
Article 8 (1) (c),
— the supply of the goods in question by the tax-
able person within the territory of the country
under the conditions laid down in Article 15 or
in Article 28c (A),
— the supply of a service performed for the taxable
person and involving work on the goods in ques-
tion physically carried out in the Member State
in which the dispatch or transport of the goods
ends, provided that the goods, after being
worked upon, are re-dispatched to that taxable
person in the Member State from which they
had initially been dispatched or transported,
— temporary use of the goods in question within
the territory of the Member State of arrival of
the dispatch or transport of the goods for the
purposes of the supply of services by the taxable
person established within the territory of the
Member State of departure of the dispatch or
transport of the goods,
— temporary use of the goods in question, for a
period not exceeding 24 months, within the terri-
tory of another Member State in which the im-
port of the same goods from a third country with
a view to temporary use would be eligible for the
arrangements for temporary importation with full
exemption from import duties.95/7/EC - - - deleted
91/680/EEC
95/7/EC - - - deleted
95/7/EC
91/680/EEC
77/388/EEC - - - I
58However, when one of the conditions to which the
benefit of the above is subordinated is no longer met,
the goods shall be considered as having been trans-
ferred to a destination in another Member State. In
this case, the transfer is carried out at the moment
that the conditions is no longer met.
6. The intra-Community acquisition of goods for con-sideration shall include the use by a taxable person for the
purposes of his undertaking of goods dispatched or trans-
ported by or on behalf of that taxable person from another
Member State within the territory of which the goods were
produced, extracted, processed, purchased, acquired as de-
fined in paragraph 1 or imported by the taxable person
within the framework of his undertaking into that other
Member State.
The following shall also be deemed to be an intra-Com-munity acquisition of goods effected for consideration: theappropriation of goods by the forces of a State party to
the North Atlantic T reaty, for their use or for the use of
the civilian staff accompanying them, which they have not
acquired subject to the general rules governing taxation on
the domestic market of one of the Member States, when
the importation of these goods could not benefit from the
exemption set out in Article 14 (1) (g).
7. Member States shall take measures to ensure thattransactions which would have been classed as ‘supplies of
goods’ as defined in paragraph 5 or Article 5 if they had
been carried out within the territory of the country by a
taxable person acting as such are classed as ‘intra-Com-
munity acquisitions of goods’.
Article 28b
Place of transactions
A. Place of the intra-Community acquisition of goods
1. The place of the intra-Community acquisition of
goods shall be deemed to be the place where the
goods are at the time when dispatch or transport to
the person acquiring them ends.
2. Without prejudice to paragraph 1, the place of
the intra-Community acquisition of goods referred to
in Article 28a (1) (a) shall, however, be deemed to be
within the territory of the Member State which issued
the value added tax identification number under
which the person acquiring the goods made the ac-
quisition, unless the person acquiring the goods esta-
blishes that that acquisition has been subject to tax in
accordance with paragraph 1.92/111/EEC
91/680/EEC
92/111/EEC
91/680/EEC
77/388/EEC - - - I
59If, however, the acquisition is subject to tax in accor-
dance with paragraph 1 in the Member State of arriv-
al of the dispatch or transport of the goods after hav-
ing been subject to tax in accordance with the first
subparagraph, the taxable amount shall be reduced
accordingly in the Member State which issued the val-
ue added tax identification number under which the
person acquiring the goods made the acquisition.
For the purposes of applying the first subparagraph,the intra-Community acquisition of goods shall be
deemed to have been subject to tax in accordance
with paragraph 1 when the following conditions have
been met:
— the acquirer establishes that he has effected this
intra-Community acquisition for the needs of a
subsequent supply effected in the Member State
referred to in paragraph 1 and for which theconsignee has been designated as the person li-
able for the tax due in accordance with Article
28c (E) (3),
— the obligations for declaration set out in the last
subparagraph of Article 22 (6) (b) have been sa-
tisfied by the acquirer.
B. Place of the supply of goods
1. By way of derogation from Article 8 (1) (a) and
(2), the place of the supply of goods dispatched or
transported by or on behalf of the supplier from a
Member State other than that of arrival of the dis-
patch or transport shall be deemed to be the place
where the goods are when dispatch or transport to
the purchaser ends, where the following conditions
are fulfilled:
— the supply of goods is effected for a taxable per-
son eligible for the derogation provided for in
the second subparagraph of Article 28a (1) (a),
for a non-taxable legal person who is eligible for
the same derogation or for any other non-taxable
person,
— the supply is of goods other than new means of
transport and other than goods supplied after as-
sembly or installation, with or without a trial run,
by or on behalf of the supplier.
Where the goods thus supplied are dispatched or
transported from a third territory and imported by
the supplier into a Member State other than the
Member State of arrival of the goods dispatched ortransported to the purchaser, they shall be regarded
as having been dispatched or transported from the
Member State of import.91/680/EEC
92/111/EEC
91/680/EEC
77/388/EEC - - - I
602. However, where the supply is of goods other
than products subject to excise duty, paragraph 1 shall
not apply to supplies of goods dispatched or trans-
ported to the same Member State of arrival of the
dispatch or transport where:
— the total value of such supplies, less value added
tax, does not in one calendar year exceed the
equivalent in national currency of ECU 100 000,
and
— the total value, less value added tax, of the sup-
plies of goods other than products subject to ex-
cise duty effected under the conditions laid down
in paragraph 1 in the previous calendar year did
not exceed the equivalent in national currency of
ECU 100 000.
The Member State within the territory of which the
goods are when dispatch or transport to the purchaserends may limit the thresholds referred to above to the
equivalent in national currency of ECU 35 000 where
that Member State fears that the threshold of ECU
100 000 referred to above would lead to serious dis-
tortions of the conditions of competition. Member
States which exercise this option shall take the mea-
sures necessary to inform the relevant public authori-
ties in the Member State of dispatch or transport of
the goods.
Before 31 December 1994, the Commission shall re-
port to the Council on the operation of the special
ECU 35 000 thresholds provided for in the preceding
subparagraph. In that report the Commission may in-
form the Council that the abolition of the special
thresholds will not lead to serious distortions of the
conditions of competition. Until the Council takes a
unanimous decision on a Commission proposal, the
preceding subparagraph shall remain in force.
3. The Member State within the territory of which
the goods are at the time of departure of the dispatch
or transport shall grant those taxable persons who ef-
fect supplies of goods eligible under paragraph 2 the
right to choose that the place of such supplies shall
be determined in accordance with paragraph 1.
The Member States concerned shall determine the de-
tailed rules for the exercise of that option, which shall
in any case apply for two calendar years.91/680/EEC
77/388/EEC - - - I
61C. P l a c eo ft h es u p p l yo fs e r v i c e si nt h ei n t r a - C o m m u n i t y
transport of goods
1. By way of derogation from Article 9 (2) (b), the
place of the supply of services in the intra-Community
transport of goods shall be determined in accordance
with paragraphs 2, 3 and 4. For the purposes of this
Title the following definitions shall apply:
— ‘the intra-Community transport of goods’ shall
mean transport where the place of departure and
the place of arrival are situated within the terri-
tories of two different Member States.
The transport of goods where the place of depar-ture and the place of arrival are situated within
the territory of the country shall be treated as
intra-Community transport of goods where such
transport is directly linked to transport of goods
where the place of departure and the place ofarrival are situated within the territories of two
different Member States;
— ‘the place of departure’ shall mean the place
where the transport of goods actually starts, leav-
ing aside distance actually travelled to the place
where the goods are,
— ‘the place of arrival’ shall mean the place where
the transport of goods actually ends.
2 . T h ep l a c eo ft h es u p p l yo fs e r v i c e si nt h ei n t r a -
Community transport of goods shall be the place of
departure.
3. However, by way of derogation from paragraph
2, the place of the supply of services in the intra-
Community transport of goods rendered to customers
identified for purposes of value added tax in a Mem-
ber State other than that of the departure of the
transport shall be deemed to be within the territory of
the Member State which issued the customer with the
value added tax identification number under which
the service was rendered to him.
4. Member States need not apply the tax to that
part of the transport corresponding to journeys made
over waters which do not form part of the territory of
the Community as defined in Article 3.
D. P l a c eo ft h es u p p l yo fs e r v i c e sa n c i l l a r yt ot h ei n t r a -
Community transport of goods
By way of derogation from Article 9 (2) (c), the place
of the supply of services involving activities ancillary
to the intra-Community transport of goods, renderedto customers identified for purposes of value added
tax in a Member State other than that within the ter-
ritory of which the services are physically performed,
shall be deemed to be within the territory of the
Member State which issued the customer with the val-
ue added tax identification number under which the
service was rendered to him.91/680/EEC
95/7/EC
95/7/EC
91/680/EEC
77/388/EEC - - - I
62E. Place of the supply of services rendered by intermedi-
aries
1. By way of derogation from Article 9 (1), the
place of the supply of services rendered by intermedi-
aries, acting in the name and for the account of other
persons, where they form part of the supply of ser-
vices in the intra-Community transport of goods, shall
be the place of departure.
However, where the customer for whom the services
rendered by the intermediary are performed is identi-
fied for purposes of value added tax in a Member
State other than that of the departure of the trans-
port, the place of the supply of services rendered by
an intermediary shall be deemed to be within the ter-
ritory of the Member State which issued the customer
with the value added tax identification number under
which the service was rendered to him.
2. By way of derogation from Article 9 (1), the
place of the supply of services rendered by intermedi-
aries acting in the name and for the account of other
persons, where they form part of the supply of ser-
vices the purpose of which is activities ancillary to the
intra-Community transport of goods, shall be the
place where the ancillary services are physically per-
formed.
However, where the customer of the services rendered
by the intermediary is identified for purposes of value
added tax in a Member State other than that within
the territory of which the ancillary service is physically
performed, the place of supply of the services ren-
dered by the intermediary shall be deemed to be
within the territory of the Member State which issued
the customer with the value added tax identification
number under which the service was rendered to him
by the intermediary.
3. By way of derogation from Article 9 (1), the
place of the supply of services rendered by intermedi-
aries acting in the name and for the account of other
persons, when such services form part of transactions
other than those referred to in paragraph 1 or 2 or in
A r t i c l e9( 2 )( e ) ,s h a l lb et h ep l a c ew h e r et h o s et r a n s -
actions are carried out.
However, where the customer is identified for pur-
poses of value added tax in a Member State other
than that within the territory of which those transac-
tions are carried out, the place of supply of the ser-vices rendered by the intermediary shall be deemed to
be within the territory of the Member State which is-
sued the customer with the value added tax identifica-
tion number under which the service was rendered to
him by the intermediary.91/680/EEC
77/388/EEC - - - I
63F. P l a c eo ft h es u p p l yo fs e r v i c e si nt h ec a s eo fv a l u a t i o n s
of or work on movable tangible property
By way of derogation from Article 9 (2) (c), the place
of the supply of services involving valuations or work
on movable tangible property, provided to customers
identified for value added tax purposes in a Member
State other than the one where those services are
physically carried out, shall be deemed to be in the
territory of the Member State which issued the cus-
tomer with the value added tax identification number
under which the service was carried out for him.
This derogation shall not apply where the goods are
not dispatched or transported out of the Member
State where the services were physically carried out.
Article 28c
Exemptions
A. Exempt supplies of goods
Without prejudice to other Community provisions and
subject to conditions which they shall lay down for
the purpose of ensuring the correct and straightfor-
ward application of the exemptions provided for be-
low and preventing any evasion, avoidance or abuse,
Member States shall exempt:
(a) supplies of goods, as defined in Article 5, dis-
patched or transported by or on behalf of the
vendor or the person acquiring the goods out of
the territory referred to in Article 3 but within
the Community, effected for another taxable per-
son or a non-taxable legal person acting as such
in a Member State other than that of the depar-
ture of the dispatch or transport of the goods.
This exemption shall not apply to supplies of
goods by taxable persons exempt from tax pursu-ant to Article 24 or to supplies of goods effected
for taxable persons or non-taxable legal persons
who qualify for the derogation in the second
subparagraph of Article 28a (1) (a);95/7/EC
91/680/EEC
95/7/EC
77/388/EEC - - - I
64(b) supplies of new means of transport, dispatched
or transported to the purchaser by or on behalf
of the vendor or the purchaser out of the territo-
ry referred to in Article 3 but within the Com-
munity, effected for taxable persons or non-tax-
able legal persons who qualify for the derogation
provided for in the second subparagraph of Ar-
ticle 28a (1) (a) or for any other non-taxable
person;
(c) the supply of goods subject to excise duty dis-
patched or transported to the purchaser, by the
vendor, by the purchaser or on his behalf, out-
side the territory referred to in Article 3 but in-
side the Community, effected for taxable persons
or non-taxable legal persons who qualify for the
derogation set out in the second subparagraph of
Article 28a (1) (a), when the dispatch or trans-port of the goods is carried out in accordance
with Article 7 (4) and (5), or Article 16 of Di-
rective 92/12/EEC.
This exemption shall not apply to supplies of
goods subject to excise duty effected by taxable
persons who benefit from the exemption from
tax set out in Article 24;
(d) the supply of goods, within the meaning of Ar-
ticle 28a (5) (b), which benefit from the exemp-
tions set out above if they have been made on
behalf of another taxable person.
B. Exempt intra-Community acquisitions of goods
Without prejudice to other Community provisions and
subject to conditions which they shall lay down for
the purpose of ensuring the correct and straightfor-
ward application of the exemptions provided for be-
low and preventing any evasion, avoidance or abuse,
Member States shall exempt:
(a) the intra-Community acquisition of goods the
supply of which by taxable persons would in all
circumstances be exempt within the territory of
the country;
(b) the intra-Community acquisition of goods the im-
portation of which would in all circumstances be
exempt under Article 14 (1);91/680/EEC
92/111/EEC
91/680/EEC
77/388/EEC - - - I
65(c) the intra-Community acquisition of goods where,
pursuant to Article 17 (3) and (4), the person
acquiring the goods would in all circumstances
be entitled to full reimbursement of the value
added tax due under Article 28a (1).
C. Exempt transport services
Member States shall exempt the supply of intra-Com-
munity transport services involved in the dispatch or
transport of goods to and from the islands making up
the autonomous regions of the Azores and Madeira
as well as the dispatch or transport of goods between
those islands.
D. Exempt importation of goods
Where goods dispatched or transported from a third
territory are imported into a Member State other
than that of arrival of the dispatch or transport,
Member States shall exempt such imports where thesupply of such goods by the importer as defined in
Article 21 (2) is exempt in accordance with paragraph
A.
Member States shall lay down the conditions govern-
ing this exemption with a view to ensuring its correct
and straightforward application and preventing any
evasion, avoidance or abuse.
E. Other exemptions
1. In Article 16:
— paragraph 1 shall be replaced by the follow-
ing:
1. Without prejudice to other Community
tax provisions, Member States may, subject
to the consultations provided for in Article
29, take special measures designed to ex-
empt all or some of the following transac-
tions, provided that they are not aimed at
final use and/or consumption and that the
amount of value added tax due on cessation
of the arrangements on situations referred
to at A to E corresponds to the amount of
tax which would have been due had each of
these transactions been taxed within the ter-
ritory of the country:
A. imports of goods which are intended to
be placed under warehousing arrange-
ments other than customs;
B. supplies of goods which are intended
to be:91/680/EEC
92/111/EEC
95/7/EC
77/388/EEC - - - I
66(a) produced to customs and, where
applicable, placed in temporary
storage;
(b) placed in a free zone or in a free
warehouse;
(c) placed under customs warehousing
arrangements or inward processing
arrangements;
(d) admitted into territorial waters:
— in order to be incorporated into
drilling or production plat-forms, for purposes of the con-struction, repair, maintenance,alteration or fitting-out of suchplatforms, or to link such dril-ling or production platforms to
the mainland,
— for the fuelling and provision-
ing of drilling or productionplatforms;
(e) placed, within the territory of the
country, under warehousing ar-
rangements other than customs
warehousing.
For the purposes of this Article,
warehouses other than customs
warehouses shall be taken to be:
— for products subject to excise
duty, the places defined as taxwarehouses for the purposes of
Article 4 (b) of Directive
92/12/EEC,
— for goods other than those sub-
ject to excise duty, the placesdefined as such by the MemberStates. However, MemberStates may not provide forwarehousing arrangementsother than customs warehous-
ing where the goods in question
are intended to be supplied atthe retail stage.
Nevertheless, Member States may
provide for such arrangements for
goods intended for:95/7/EC
77/388/EEC - - - I
67— taxable persons for the pur-
poses of supplies effectedunder the conditions laid downin Article 28k,
— tax-free shops within the mean-
ing of Article 28k, for the pur-
poses of supplies to travellerstaking flights or sea crossings tothird countries, where thosesupplies are exempt pursuantto Article 15,
— taxable persons for the pur-
poses of supplies to travellerson board aircraft or vessels dur-
ing a flight or sea crossing
w h e r et h ep l a c eo fa r r i v a li ssituated outside the Commun-ity,
— taxable persons for the pur-
poses of supplies effected freeof tax pursuant to Article 15,point 10.
The places referred to in (a), (b), (c)
and (d) shall be as defined by the
Community customs provisions in
force;
C. supplies of services relating to the sup-
plies of goods referred to in B;
D. supplies of goods and of services car-
ried out:
(a) in the places listed in B (a), (b),
(c) and (d) and still subject to one
of the situations specified therein;
(b) in the places listed in B (e) and
still subject, within the territory of
the country, to the situation speci-
fied therein.95/7/EC
77/388/EEC - - - I
68Where they exercise the option pro-
vided for in (a) for transactions ef-
fected in customs warehouses, Member
States shall take the measures neces-
sary to ensure that they have defined
warehousing arrangements other than
customs warehousing which permit the
provisions in (b) to be applied to the
same transactions concerning goods
listed in Annex J which are efected
( S I C !e f f e c t e d )i ns u c hw a r e h o u s e so t h -
er than customs warehouses;
E. supplies:
— of goods referred to in Article 7
(1) (a) still subject to arrange-
ments for temporary importation
with total exemption from importduty or to external transit ar-
rangements,
— of goods referred to in Article 7
(1) (b) still subject to the internal
Community transit procedure pro-
vided for in Article 33a,
as well as supplies of services relating
to such supplies.
By way of derogation from the first sub-
paragraph of Article 21 (1) (a), the person
liable to pay the tax due in accordance with
the first subparagraph shall be the person
w h oc a u s e st h eg o o d st oc e a s et ob ec o v -
ered by the arrangements or situations listed
in this paragraph.
When the removal of goods from the ar-
rangements or situations referred to in this
paragraph gives rise to importation within
the meaning of Article 7 (3), the Member
State of import shall take the measures
necessary to avoid double taxation within
the country.’,95/7/EC
77/388/EEC - - - I
69— the following paragraph shall be added:
1a. Where they exercise the option pro-
vided for in paragraph 1, Member States
shall take the measures necessary to ensure
that intra-Community acquisitions of goods
intended to be placed under one of the ar-
rangements or in one of the situations re-
ferred to in paragraph 1 (B) benefit from
the same provisions as supplies of goods ef-
fected within the country under the same
conditions.’
2. In Article 16 (2):
— ‘intra-Community acquisitions of goods
made by a taxable person and’ shall be add-
ed after ‘may opt to exempt’ and ‘outside
the Community’ shall be added after ‘export
them’,
— the following subparagraphs shall be added:
‘When they take up this option the Member
States shall, subject to the consultation pro-
vided for in Article 29, extend the benefit of
this exemption to intra-Community acquisi-
tions of goods by a taxable person, imports
f o ra n ds u p p l i e so fg o o d st oat a x a b l ep e r -
son intending to supply them, as they are or
after processing, under the conditions laid
down in Article 28c (A), as well as supplies
of services relating to such supplies, up to a
maximum equal to the value of his supplies
of goods effected under the conditions laid
down in Article 28c (A) during the preced-
ing twelve months.
Member States may set a common maxi-
mum amount for transactions which they
exempt under the first and second subpara-
graphs.’
3. Member States shall take specific measures to
ensure that value added tax is not charged on
the intra-Community acquisition of goods ef-
fected, within the meaning of Article 28b (A)
(1), within its territory when the following condi-
tions are met:
— the intra-Community acquisition of goods is
effected by a taxable person who is not es-
tablished in the territory of the country but
who is identified for value added tax pur-poses in another Member State,
— the intra-Community acquisition of goods is
effected for the purpose of a subsequent
s u p p l yo fg o o d sm a d eb yat a x a b l ep e r s o n
in the territory of the country,95/7/EC
92/111/EEC
77/388/EEC - - - I
70— the goods so acquired by this taxable person
are directly dispatched or transported from
another Member State than that in which
he is identified for value added tax purposes
and destined for the person for whom he
effects the subsequent supply,
— the person to whom the subsequent supply
is made is a taxable person or a non-taxable
legal person who is identified for value add-
ed tax purposes within the territory of the
country,
— the person to whom the subsequent supply
is made has been designated in accordance
with the third subparagraph of Article 21
( 1 )( a )a st h ep e r s o nl i a b l ef o rt h et a xd u e
on the supplies effected by the taxable per-
son not established within the territory ofthe country.
Article 28d
Chargeable event and chargeability of tax
1. The chargeable event shall occur when the intra-Com-
munity acquisition of goods is effected. The intra-Com-
munity acquisition of goods shall be regarded as being ef-
fected when the supply of similar goods is regarded as
being effected within the territory of the country.
2. For the intra-Community acquisition of goods, tax
shall become chargeable on the 15th day of the month fol-
lowing that during which the chargeable event occurs.
3. By way of derogation from paragraph 2, tax shall be-c o m ec h a r g e a b l eo nt h ei s s u eo ft h ei n v o i c eo ro t h e rd o c u -
ment serving as invoice provided for in the first subpara-
graph of Article 22 (3) (a) where that invoice or document
is issued to the person acquiring the goods before the fif-teenth day of the month following that during which the
taxable event occurs.
4. By way of derogation from Article 10 (2) and (3), taxshall become chargeable for supplies of goods effected
under the conditions laid down in Article 28c (A) on the
15th day of the month following that during which the
chargeable event occurs.
However, tax shall become chargeable on the issue of theinvoice provided for in the first subparagraph of Article 22
(3) (a) or other document serving as invoice where that
invoice or document is issued before the fifteenth day of
the month following that during which the taxable event
occurs.92/111/EEC
91/680/EEC
92/111/EEC
91/680/EEC
92/111/EEC
77/388/EEC - - - I
71Article 28e
Taxable amount and rate applicable
1. In the case of the intra-Community acquisition of
goods, the taxable amount shall be established on the basis
of the same elements as those used in accordance with Ar-
ticle 11 (A) to determine the taxable amount for supply of
the same goods within the territory of the country. In par-
ticular, in the case of the intra-Community acquisition of
goods referred to in Article 28a (6), the taxable amount
shall be determined in accordance with Article 11 (A) (1)
(b) and paragraphs 2 and 3.
Member States shall take the measures necessary to ensure
t h a tt h ee x c i s ed u t yd u eo rp a i db yt h ep e r s o ne f f e c t i n g
the intra-Community acquisition of a product subject to
excise duty is included in the taxable amount in accordance
with Article 11 (A) (2) (a). When, after the moment the
intra-Community acquisition of goods was effected, the ac-
quirer obtains the refund of excise duties paid in the
Member State from which the goods were dispatched or
transported, the taxable amount shall be reduced accord-
ingly in the Member State where the intra-Community ac-
quisition took place.
2. For the supply of goods referred to in Article 28c (A)(d), the taxable amount shall be determined in accordance
with Article 11 (A) (1) (b) and paragraphs 2 and 3.
3. The tax rate applicable to the intra-Community ac-quisition of goods shall be that in force when the tax be-
comes chargeable.
4. The tax rate applicable to the intra-Community ac-quisition of goods shall be that applied to the supply of
like goods within the territory of the country.
Article 28f
Right of deduction
1. Article 17 (2), (3) and (4) shall be replaced by the
following:
‘2. In so far as the goods and services are used for the
purposes of his taxable transactions, the taxable person
shall be entitled to deduct from the tax which he is liable
to pay:
(a) value added tax due or paid within the territory of
the country in respect of goods or services supplied or
to be supplied to him by another taxable person;
(b) value added tax due or paid in respect of imported
goods within the territory of the country;91/680/EEC
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72(c) value added tax due pursuant to Articles 5 (7) (a), 6
(3) and 28a (6);
(d) value added tax due pursuant to Article 28a (1) (a).
3. Member States shall also grant every taxable person
the right to the deduction or refund of the value added tax
referred to in paragraph 2 in so far as the goods and ser-
vices are used for the purposes of:
(a) transactions relating to the economic activities re-
ferred to in Article 4 (2), carried out in another coun-
try, which would be deductible if they had been per-
formed within the territory of the country;
(b) transactions which are exempt pursuant to Article 14
(1) (i), 15, 16 (1) (B), (C), (D) or (E) or (2) or 28c
(A) and (C);
(c) any of the transactions exempt pursuant to Article 13
(B) (a) and (d) (1) to (5), when the customer is es-
tablished outside the Community or when those trans-actions are directly linked with goods to be exported
to a country outside the Community.
4. The refund of value added tax referred to in para-
graph 3 shall be effected:
— to taxable persons who are not established within the
territory of the country but who are established in
another Member State in accordance with the de-
tailed implementing rules laid down in Directive
79/1072/EEC (
1),
— to taxable persons who are not established within the
territory of the Community, in accordance with the
detailed implementing rules laid down in Directive
86/560/EEC (2).’
For the purposes of applying the above:
(a) the taxable persons referred to in Article 1 of Direc-
tive 79/1072/EEC shall also be considered for the
purposes of applying the said Directive as taxable per-
sons who are not established in the country when, in-
side the territory of the country, they have only car-
ried out supplies of goods and services to a person
who has been designated as the person liable to pay
the tax in accordance with Article 21 (1) (a);
(1) OJ No L 331, 27. 12. 1979, p. 11.
(2) OJ No L 326, 21. 11. 1986, p. 40.91/680/EEC
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73(b) the taxable persons referred to in Article 1 of Direc-
tive 86/560/EEC shall also be considered for the pur-
poses of applying the said Directive as taxable per-
sons who are not established in the Community when,
inside the territory of the country, they have only car-
ried out supplies of goods and services to a person
who has been designated as the person liable to pay
the tax in accordance with Article 21 (1) (a);
(c) Directives 79/1072/EEC and 86/560/EEC shall not ap-
ply to supplies of goods which are, or may be, ex-
empted under Article 28c (A) when the goods sup-
plied are dispatched or transported by the acquirer or
for his account.
2. Article 18 (1) shall be replaced by the following:
‘1. T o exercise his right of deduction, a taxable person
must:
(a) in respect of deductions pursuant to Article 17 (2)
(a), hold an invoice drawn up in accordance with Ar-
ticle 22 (3);
(b) in respect of deductions pursuant to Article 17 (2)
(b), hold an import document specifying him as con-
signee or importer and stating or permitting the cal-
culation of the amount of tax due;
(c) in respect of deductions pursuant to Article 17 (2)
(c), comply with the formalities established by each
Member State;
(d) when he is required to pay the tax as a customer or
purchaser where Article 21 (1) applies, comply with
the formalities laid down by each Member State;
(e) in respect of deductions pursuant to Article 17 (2)
(d), set out in the declaration provided for in Article
22 (4) all the information needed for the amount of
the tax due on his intra-Community acquisitions of
goods to be calculated and hold an invoice in accor-
dance with Article 22 (3).’
3. The following paragraph shall be inserted in Article
18:
‘3a. Member States may authorize a taxable person who
does not hold an invoice in accordance with Article 22 (3)
to make the deduction referred to in Article 17 (2) (d);
they shall determine the conditions and arrangements for
applying this provision.’92/111/EEC
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74Article 28g
Persons liable for payment of the tax
Article 21 shall be replaced by the following:
‘Article 21
Persons liable to pay tax to the authorities
T h ef o l l o w i n gs h a l lb el i a b l et op a yv a l u ea d d e dt a x :
1. under the internal system:
(a) the taxable person carrying out the taxable sup-
ply of goods or of services, other than one of the
supplies of services referred to in (b).
W h e r et h et a x a b l es u p p l yo fg o o d so ro fs e r v i c e s
is effected by a taxable person who is not estab-
lished within the territory of the country, Mem-
ber States may adopt arrangements whereby tax
is payable by another person. Inter alios at a x
representative or the person for whom the tax-
able supply of goods or of services is carried outmay be designated as that other person.
However, the tax is payable by the person to
whom the supply of goods is made when the fol-
lowing conditions are met:
— the taxable operation is a supply of goods
made under the conditions laid down in
paragraph 3 of Title E of Article 28c,
— the person to whom the supply of goods is
made is another taxable person or a non-
taxable legal person identified for the pur-
poses of value-added tax within the territory
of the country,
— the invoice issued by the taxable person not
established within the territory of the coun-
try conforms to Article 22 (3).
However, Member States may provide a deroga-
tion from this obligation in the case where the
taxable person who is not established within the
territory of the country has appointed a tax rep-
resentative in that country.
Member States may provide that someone other
than the taxable person shall be held jointly and
severally liable for payment of the tax;91/680/EEC
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75(b) persons to whom services covered by Article 9
(2) (e) are supplied or persons who are identi-
fied for value added tax purposes within the ter-
ritory of the country to whom services covered
b yA r t i c l e2 8 b ,( C ) ,( D ) ,( E )a n d( F )a r es u p -
plied, if the services are carried out by a taxable
person established abroad; however, Member
States may require that the supplier of services
shall be held jointly and severally liable for pay-
ment of the tax;
(c) any person who mentions the value added tax on
an invoice or other document serving as invoice;
(d) any person effecting a taxable intra-Community
acquisition of goods. Where an intra-Community
acquisition of goods is effected by a person es-
tablished abroad, Member States may adopt ar-
rangements whereby tax is payable by anotherperson. Inter alios , a tax representative may be
designated as that other person. Member States
may also provide that someone other than the
person effecting the intra-Community acquisition
of goods shall be held jointly and severally liable
for payment of the tax;
2. on importation: the person or persons designated or
accepted as being liable by the Member State into
which the goods are imported.’
Article 28h
Obligations of persons liable for payment
Article 22 shall be replaced by the following:
‘Article 22
Obligations under the internal system:
1. (a) Every taxable person shall state when his activity
as a taxable person commences, changes or
ceases.
(b) Without prejudice to (a), every taxable person
referred to in Article 28a (1) (a), second sub-
paragraph, shall state that he is effecting intra-
Community acquisitions of goods when the
conditions for application of the derogation pro-
vided for in that Article are not fulfilled.
(c) Member States shall take the measures necessary
to identify by means of an individual number:95/7/EC
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76— every taxable person, with the exception of
those referred to in Article 28a (4), who
within the territory of the country effects
supplies of goods or of services giving him
the right of deduction, other than provisions
of services for which tax is payable solely by
the customer in accordance with Article 21
(1) (b) and other than a supply of goods or
services to a person who has been desig-
nated as the person liable for the tax in ac-
cordance with Article 21 (1) (a), third para-
graph. However, Member States need notidentify certain taxable persons referred to
in Article 4 (3),
— every taxable person referred to in para-
graph 1 (b) and every taxable person who
exercises the option provided for in thethird subparagraph of Article 28a (1) (a).
— every taxable person who, within the terri-
tory of the country, effects intra-Community
acquisitions of goods for the purposes of his
operations relating to the economic acti-
vities referred to in Article 4 (2) carried out
abroad,
(d) Each individual identification number shall have
a prefix in accordance with ISO International
Standard No 3166 — alpha 2 — by which the
Member State of issue may be identified.
(e) Member States shall take the measures necessary
to ensure that their identification systems distin-
guish the taxable persons referred to in (c) and
to ensure the correct application of the transi-
tional arrangements for the taxation of intra-
Community transactions as laid down in this
Title.
2. (a) Every taxable person shall keep accounts in suffi-
cient detail for value added tax to be applied
and inspected by the tax authority.
(b) Every taxable person shall keep a register of the
goods he has dispatched or transported or which
have been dispatched or transported on his be-
half out of the territory defined in Article 3 but
within the Community for the purposes of the
transactions referred to in the fifth, sixth and
seventh indents of Article 28a (5) (b).91/680/EEC
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77Every taxable person shall keep sufficiently de-
tailed accounts to permit the identification of
goods dispatched to him from another Member
State by or on behalf of a taxable person identi-
fied for purposes of value added tax in that oth-
er Member State, in connection with which a
service has been provided pursuant to the third
or fourth indent of Article 9 (2) (c);
3. (a) Every taxable person shall issue an invoice, or
other document serving as invoice, in respect of
goods and services which he has supplied or ren-
dered to another taxable person or to a non-tax-
able legal person. Every taxable person shall also
issue an invoice, or other document serving as
invoice, in respect of the supplies of goods re-
ferred to in Article 28b (B) (1) and in respect of
goods supplied under the conditions laid down inArticle 28c (A). A taxable person shall keep a
copy of every document issued.
Every taxable person shall likewise issue an in-
voice in respect of any payment to account made
to him before any supplies of goods referred to
in the first subparagraph and in respect of any
payment to account made to him by another tax-
able person or by a non-taxable legal person be-
fore the provision of services is completed.
(b) The invoice shall state clearly the price exclusive
of tax and the relevant tax at each rate as well as
any exemptions.
The invoice shall also indicate:
— in the case of the transactions referred to in
Article 28b (C), (D), (E) and (F), the num-
ber by which the taxable person is identified
in the territory of the country and the num-
ber by which the customer is identified and
under which the service has been rendered
to him.
— in the case of the transactions referred to in
Article 28c (A) (a), the number by which
the taxable person is identified in the terri-
tory of the country and the number by
which the person acquiring the goods is
identified in another Member State,
— in the case of the supply of new means of
transport, the particulars specified in Article
28a (2).95/7/EC
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78— where the provisions of Article 28c (E) (3)
are applied, an explicit reference to that
provision as well as the identification num-
ber for value added tax purposes under
which the taxable person has carried out the
intra-Community acquisition and the subse-
quent supply of goods and the number by
which the person to whom this supply is
made is identified for value added tax pur-
poses.
(c) Member States shall lay down the criteria that
shall determine whether a document may be con-
sidered an invoice.
4. (a) Every taxable person shall submit a return by a
deadline to be determined by Member States.
That deadline may not be more than two months
later than the end of each tax period. The taxperiod shall be fixed by each Member State at
one month, two months or a quarter. Member
States may, however, set different periods pro-
vided that they do not exceed one year.
(b) The return shall set out all the information
needed to calculate the tax that has become
chargeable and the deductions to be made in-
cluding, where appropriate, and in so far as it
seems necessary for the establishment of the
basis of assessment, the total value of the trans-
actions relative to such tax and deductions and
the value of any exempt transactions.
(c) The return shall also set out:
— on the one hand, the total value, less value
added tax, of the supplies of goods referred
to in Article 28c (A) on which tax has be-
come chargeable during the period.
T h ef o l l o w i n gs h a l la l s ob ea d d e d :t h et o t a l
value, less value added tax, of the supplies
of goods referred to in the second sentence
of Article 8 (1) (a) and in Article 28b (B)
(1) effected within the territory of another
Member State for which tax has become
chargeable during the return period where
the place of departure of the dispatch or
transport of the goods is situated in the ter-
ritory of the country,92/111/EEC
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79— on the other hand, the total amount, less
value-added tax of the intra-Community ac-
quisitions of goods referred to in Article
28a (1) and (6) effected within the territory
of the country on which tax has become
chargeable.
T h ef o l l o w i n gs h a l la l s ob ea d d e d :t h et o t a l
value, less value-added tax, of the supplies
of goods referred to in the second sentence
of Article 8 (1) (a) and in Article 28 (b)
(B) (1) effected in the territory of the
country on which tax has become charge-
able during the return period, where the
place of departure of the dispatch or trans-
port of the goods is situated within the
territory of another Member State, and the
total amount, less value-added tax, of thesupplies of goods made within the territory
of the country for which the taxable person
has been designated as the person liable for
the tax in accordance with Article 28c (E)
(3) and under which the tax has become
payable in the course of the period covered
by the declaration.
5. Every taxable person shall pay the net amount of thevalue added tax when submitting the regular return. Mem-
ber States may, however, set a different date for the pay-
ment of that amount or may demand an interim payment.
6. (a) Member States may require a taxable person to
submit a statement, including all the particulars
specified in paragraph 4, concerning all transac-
tions carried out in the preceding year. That
statement shall provide all the information
necessary for any adjustments.
(SIC! (b)) Every taxable person identified for value
added tax purposes shall also submit a recapitu-
lative statement of the acquirers identified for
value added tax purposes to whom he has sup-
plied goods under the conditions provided for in
Article 28c (A) (a) and (d), and of consignees
identified for value added tax purposes in the
transactions referred to in the fifth subparagraph.92/111/EEC
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80The recapitulative statement shall be drawn up
for each calendar quarter within a period and in
accordance with procedures to be determined by
the Member States, which shall take the mea-
sures necessary to ensure that the provisions con-
cerning administrative cooperation in the field of
indirect taxation are in any event complied with.
The recapitulative statement shall set out:
— the number by which the taxable person is
identified for purposes of value added tax in
the territory of the country and under which
he effected supplies of goods in the condi-
tions laid down in Article 28c (A) (a),
— t h en u m b e rb yw h i c he a c hp e r s o na c q u i r i n g
goods is identified for purposes of value
added tax in another Member State and un-
der which the goods were supplied to him,
— for each person acquiring goods, the total
v a l u eo ft h es u p p l i e so fg o o d se f f e c t e db y
the taxable person. Those amounts shall be
declared for the calendar quarter during
which the tax became chargeable.
The recapitulative statement shall also set
out:
— for the supplies of goods covered by Article
28c (A) (d), the number by means of which
the taxable person is identified for purposes
of value added tax in the territory of the
country, the number by which he is identi-
fied in the Member State of arrival of the
dispatch or transport and the total amount
of the supplies, determined in accordance
with Article 28e (2),
— the amounts of adjustments made pursuant
to Article 11 (C) (1). Those amounts shall
be declared for the calendar quarter during
which the person acquiring the goods is no-
tified of the adjustment.
In the cases set out in the third subparagraph of
Article 28b (A) (2), the taxable person identified
for value added tax purposes within the territory
of the country shall mention in a clear way on
the recapitulative statement:91/680/EEC
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81— the number by which he is identified for
value added tax purposes within the territo-
ry of the country and under which he car-
ried out the intra-Community acquisition
and the subsequent supply of goods,
— the number by which, within the territory of
the Member State of arrival of the dispatch
or transport of the goods, the consignee of
the subsequent supply by the taxable person
is identified,
— and, for each consignee, the total amount,
less value added tax, of the supplies made
by the taxable person within the territory of
the Member State of arrival of the dispatch
or transport of the goods. These amounts
shall be declared for the calendar quarter
during which the tax became chargeable.
(c) By way of derogation from (b), Member States
may:
— require recapitulative statements to be filed
on a monthly basis,
— require that recapitulative statements give
additional particulars.
(d) In the case of supplies of new means of trans-
port effected under the conditions laid down in
Article 28c (A) (b) by a taxable person identified
for purposes of value added tax to a purchaser
not identified for purposes of value added tax or
by a taxable person as defined in Article 28a (4),
Member States shall take the measures necessary
to ensure that the vendor communicates all the
information necessary for value added tax to be
applied and inspected by the tax authority.
(e) Member States may require taxable persons who
in the territory of the country effect intra-Com-
munity acquisitions of goods as defined in Article
28a (1) (a) and (6) to submit statements giving
details of such acquisitions provided, however,
that such statements may not be required for a
period of less than one month.
Member States may also require persons who ef-
fect intra-Community acquisitions of new means
of transport as defined in Article 28a (1) (b) to
provide, when submitting the return referred to
in paragraph 4, all the information necessary for
value added tax to be applied and inspected bythe tax authority.92/111/EEC
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827. Member States shall take the measures necessary to
ensure that those persons who, in accordance with Article
21 (1) (a) and (b), are considered to be liable to pay the
tax instead of a taxable person established abroad or who
are jointly and severally liable for the payment comply
with the above obligations relating to declaration and pay-
ment.
8. Member States may impose other obligations which
they deem necessary for the correct collection of the tax
and for the prevention of evasion, subject to the require-
ment of equal treatment for domestic transactions and
transactions carried out between Member States by taxable
persons and provided that such obligations do not, in trade
between Member States, give rise to formalities connected
with the crossing of frontiers.
9. (a) Member States may release from certain or all
obligations:
— taxable persons carrying out only supplies of
g o o d so ro fs e r v i c e sw h i c ha r ee x e m p t
pursuant to Articles 13 and 15,
— taxable persons eligible for the exemption
from tax provided for in Article 24 and for
the derogation provided for in Article 28a
(1) (a), second subparagraph,
— taxable persons carrying out none of the
transactions referred to in paragraph 4 (c).
(b) Member States may release taxable persons
other than those referred to in (a) from certain
of the obligations referred to in 2 (a).
(c) Member States may release taxable persons from
payment of the tax due where the amount in-
volved is insignificant.
10. Member States shall take measures to ensure that
n o n - t a x a b l el e g a lp e r s o n sw h oa r el i a b l ef o rt h et a xp a y -
able in respect of intra-Community acquisitions of goods
covered by the first subparagraph of Article 28a (1) (a)
comply with the above obligations relating to declaration
and payment and that they are identified by an individual
number as defined in paragraph 1 (c), (d) and (e).
11. In the case of intra-Community acquisitions of prod-
ucts subject to excise duty referred to in Article 28a (1) (c)
as well as in the case of intra-Community acquisitions of
new means of transport covered by Article 28a (1) (b),
Member States shall adopt arrangements for declaration
and subsequent payment.91/680/EEC
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8312. Acting unanimously on a proposal from the Commis-
sion, the Council may authorize any Member State to
introduce particular measures to simplify the statement ob-
ligations laid down in paragraph 6 (b). Such simplification
measures, which shall not jeopardize the proper monitoring
of intra-Community transactions, may take the following
forms:
(a) Member States may authorize taxable persons who
meet the following three conditions to file one-year
recapitulative statements indicating the numbers by
which the persons to whom those taxable persons
have supplied goods under the conditions laid down
in Article 28c (A) are identified for purposes of value
a d d e dt a xi no t h e rM e m b e rS t a t e s :
— the total annual value, less value added tax, of
their supplies of goods or provisions of services,
as defined in Articles 5, 6 and 28a (5), does notexceed by more than ECU 35 000 the amount of
the annual turnover which is used as a reference
for application of the exemption from tax pro-
vided for in Article 24,
— the total annual value, less value added tax, of
supplies of goods effected by them under the
conditions laid down in Article 28c (A) does not
exceed the equivalent in national currency of
ECU 15 000,
— supplies of goods effected by them under the
conditions laid down in Article 28c (A) are other
than supplies of new means of transport;
(b) Member States which set at over three months the tax
period for which taxable persons must submit the re-
turns provided for in paragraph 4 may authorize such
persons to submit recapitulative statements for the
same period where those taxable persons meet the
following three conditions:
— the overall annual value, less value added tax, of
the goods and the services they supply, as de-
fined in Articles 5, 6 and 28a (5), does not ex-
ceed the equivalent in national currency of ECU
200 000,
— the total annual value, less value added tax, of
supplies of goods effected by them under the
conditions laid down in Article 28c (A) does not
exceed the equivalent in national currency of
ECU 15 000,
— supplies of goods effected by them under the
conditions laid down in Article 28c (A) are other
than supplies of new means of transport.91/680/EEC
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84Article 28i
Special scheme for small undertakings
The following subparagraph shall be added to Article 24
(3):
‘In all circumstances supplies of new means of transport
effected under the conditions laid down in Article 28c (A)
as well as supplies of goods and services effected by a tax-
able person who is not established in the territory of the
country shall be excluded from the exemption from tax un-
der paragraph 2.’
Article 28j
Common flat-rate scheme for farmers
1. The following subparagraph shall be added to Article
25 (4):
‘When they exercise this option, Member States shall take
the measures necessary to ensure the correct application of
the transitional arrangements for the taxation of intra-
Community transactions as laid down in Title XVIa.’
2. Article 25 (5) and (6) shall be replaced by the follow-
ing:
‘5. The flat-rate percentages provided for in paragraph 3
shall be applied to the prices, exclusive of tax, of:
(a) agricultural products supplied by flat-rate farmers to
taxable persons other than those eligible within the
territory of the country for the flat-rate scheme pro-
vided for in this Article;
(b) agricultural products supplied by flat-rate farmers, un-
der the conditions laid down in Article 28 c (A), to
non-taxable legal persons not eligible, in the Member
State of arrival of the dispatch or transport of the
agricultural products thus supplied, for the derogation
provided for in Article 28a (1) (a), second subpara-
graph;
(c) agricultural services supplied by flat-rate farmers to
taxable persons other than those eligible within the
territory of the country for the flat-rate scheme pro-
vided for in this Article.
This compensation shall exclude any other form of deduc-
tion.
6. In the case of the supplies of agricultural productsand of agricultural services referred to in paragraph 5,
Member States shall provide for the flat-rate compensation
to be paid either:92/111/EEC
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85(a) by the purchaser or customer. In that event, the tax-
able purchaser or customer shall be authorized, as
provided for in Article 17 and in accordance with the
procedures laid down by the Member States, to de-
duct from the tax for which he is liable within the
territory of the country the amount of the flat-rate
compensation he has paid to flat-rate farmers.
Member States shall refund to the purchaser or cus-
tomer the amount of the flat-rate compensation he
has paid to flat-rate farmers in respect of any of the
following transactions:
— supplies of agricultural products effected under
the conditions laid down in Article 28c (A) to
t a x a b l ep e r s o n s ,o rt on o n - t a x a b l el e g a lp e r s o n s
acting as such in another Member State within
which they are not eligible for the derogation
provided for in the second subparagraph of Ar-ticle 28a (1) (a),
— supplies of agricultural products effected under
the conditions laid down in Article 15 and in Ar-
ticle 16 (1) (B), (D) and (E) to taxable purchas-
ers established outside the Community, provided
that the products are used by those purchasers
for the purposes of the transactions referred to
in Article 17 (3) (a) and (b) or for the purposes
of services which are deemed to be supplied
within the territory of the country and on which
tax is payable solely by the customers under Ar-
ticle 21 (1) (b),
— supplies of agricultural services to taxable cus-
tomers established within the Community but in
o t h e rM e m b e rS t a t e so rt ot a x a b l ec u s t o m e r se s -
tablished outside the Community, provided that
the services are used by those customers for the
purposes of the transactions referred to in Ar-
ticle 17 (3) (a) and (b) and for the purposes of
services which are deemed to be supplied within
the territory of the country and on which tax is
payable solely by the customers under Article 21
(1) (b).
Member States shall determine the method by which
the refunds are to be made; in particular, they may
apply Article 17 (4); or
(b) by the public authorities.’91/680/EEC
77/388/EEC - - - I
863. The following subparagraph shall be added to Article
25 (9):
‘Whenever they exercise the option provided for in this Ar-
ticle, Member States shall take all measures necessary to
ensure that the same method of taxation is applied to sup-
plies of agricultural products effected under the conditions
laid down in Article 28b (B) (1), whether the supply is
effected by a flat-rate farmer or by a taxable person other
than a flat-rate farmer.’
Article 28k
Miscellaneous provisions
The following provisions shall apply until 30 June 1999:
1. Member States may exempt supplies by tax-free shops
of goods to be carried away in the personal luggage of
travellers taking intra-Community flights or sea crossings to
other Member States. For the purposes of this Article:
(a) ‘tax-free shop shall mean any establishment situated
within an airport or port which fulfils the conditions
laid down by the competent public authorities pur-
suant, in particular, to paragraph 5;
(b) ‘traveller to another Member State shall mean any
passenger holding a transport document for air or seatravel stating that the immediate destination is an air-
port or port situated in another Member State;
(c) ‘intra-Community flight or sea crossing shall mean any
transport, by air or sea, starting within the territory of
the country as defined in Article 3, where the actual
place of arrival is situated within another Member
State.
Supplies of goods effected by tax-free shops shall include
supplies of goods effected on board aircraft or vessels dur-
ing intra-Community passenger transport.
This exemption shall also apply to supplies of goods ef-
fected by tax-free shops in either of two Channel T unnel
terminals, for passengers holding valid tickets for the jour-
ney between those two terminals.
2. Eligibility for the exemption provided for in para-
graph 1 shall apply only to supplies of goods:
(a) the total value of which per person per journey does
not exceed ECU 90.
By way of derogation from Article 28m, Member
States shall determine the equivalent in national cur-
rency of the above amount in accordance with Article
7 (2) of Directive 69/169/EEC.91/680/EEC
94/4/EC
77/388/EEC - - - I
87Where the total value of several items or of several
supplies of goods per person per journey exceeds
those limits, the exemption shall be granted up to
those amounts, on the understanding that the value of
an item may not be split;
(b) involving quantities per person per journey not ex-
ceeding the limits laid down by the Community provi-
sions in force for the movement of travellers between
third countries and the Community.
The value of supplies of goods effected within the
quantitative limits laid down in the previous subpara-
graph shall not be taken into account for the applica-
tion of (a).
3. Member States shall grant every taxable person the
right to a deduction or refund of the value added tax re-
ferred to in Article 17 (2) in so far as the goods and ser-
vices are used for the purposes of his supplies of goodsexempt under this Article.
4. Member States which exercise the option provided for
in Article 16 (2) shall also grant eligibility under that pro-
vision to imports, intra-Community acquisitions and sup-
p l i e so fg o o d st oat a x a b l ep e r s o nf o rt h ep u r p o s e so fh i s
s u p p l i e so fg o o d se x e m p tp u r s u a n tt ot h i sA r t i c l e .
5. Member States shall take the measures necessary to
ensure the correct and straightforward application of the
exemptions provided for in this Article and to prevent any
evasion, avoidance or abuse.
Article 28l
Period of application
The transitional arrangements provided for in this Title
shall enter into force on 1 January 1993. Before 31 De-
cember 1994 the Commission shall report to the Council
on the operation of the transitional arrangements and sub-
mit proposals for a definitive system.
The transitional arrangements shall be replaced by a de-
finitive system for the taxation of trade between Member
States based in principle on the taxation in the Member
State of origin of the goods or services supplied.
T o that end, after having made a detailed examination of
that report and considering that the conditions for transi-
tion to the definitive system have been fulfilled satisfactor-
ily, the Council, acting unanimously on a proposal from
the Commission and after consulting the European Parlia-
ment, shall decide before 31 December 1995 on the ar-
rangements necessary for the entry into force and the
operation of the definitive system.91/680/EEC
77/388/EEC - - - I
88The transitional arrangement shall enter into force for four
years and shall accordingly apply until 31 December 1996.
The period of application of the transitional arrangements
shall be extended automatically until the date of entry into
force of the definitive system and in any event until the
Council has decided on the definitive system.
Article 28m
Rate of conversion
T o determine the equivalents in their national currencies of
a m o u n t se x p r e s s e di ne c u si nt h i sT i t l eM e m b e rS t a t e s
s h a l lu s et h er a t eo fe x c h a n g ea p p l i c a b l eo n1 6D e c e m b e r
1991 (1).
Article 28n
Transitional measures
1. When goods:
— entered the territory of the country within the mean-
ing of Article 3 before 1 January 1993,
and
— were placed, on entry into the territory of that
country, under one of the regimes referred to in Ar-
t i c l e1 4( 1 )( b )o r( c ) ,o rA r t i c l e1 6( 1 )( A ) ,
and
— have not left that regime before 1 Jannuary (SIC!
January) 1993, the provisions in force at the moment
the goods were placed under that regime shall con-
tinue to apply for the period, as determined by those
provisions, the goods remain under that regime.
2. The following shall be deemed to be an import of
goods within the meaning of Article 7 (1):
(a) the removal, including irregular removal, of goods
from the regime referred to in Article 14 (1) (c)
under which the goods were placed before 1 January
1993 under the conditions set out in paragraph 1;
(b) the removal, including irregular removal, of goods
from the regime referred to in Article 16 (1) (A)
under which the goods were placed before 1 January1993 under the conditions set out in paragraph 1;
(1) OJ No C 328, 17. 12. 1991, p. 4.91/680/EEC
92/111/EEC
77/388/EEC - - - I
89(c) the termination of a Community internal transit oper-
ation started before 1 January 1993 in the Commun-
ity for the purpose of supply of goods for consider-
ation made before 1 January 1993 in the Community
by a taxable person acting as such;
(d) the termination of an external transit operation
started before 1 January 1993;
(e) any irregularity or offence committed during an exter-
nal transit operation started under the conditions set
out in (c) or any Community external transit oper-
a t i o nr e f e r r e dt oi n( d ) ;
(f) the use within the country, by a taxable or non-tax-
able person, of goods which have been supplied to
him, before 1 January 1993, within another Member
State, where the following conditions are met:
— the supply of these goods has been exempted, or
was likely to be exempted, pursuant to Article 15(1) and (2),
— the goods were not imported within the country
before 1 January 1993.
For the purpose of the application of (c), the expression
‘Community internal transit operation’ shall mean the dis-
patch or transport of goods under the cover of the internal
Community transit arrangement or under the cover of a
T2 L document or the intra-Community movement carnet,
or the sending of goods by post.
3. In the cases referred to in paragraph 2 (a) to (e), the
place of import, within the meaning of Article 7 (2), shall
be the Member State within whose territory the goods
cease to be covered by the regime under which they were
placed before 1 January 1993.
4. By way of derogation from Article 10 (3), the import
of the goods within the meaning of paragraph 2 of this
Article shall terminate without the occurrence of a charge-
able event when:
(a) the imported goods are dispatched or transported out-
side the Community within the meaning of Article 3;
or
(b) the imported goods, within the meaning of paragraph
2 (a), are other than a means of transport and are
dispatched or transported to the Member State from
which they were exported and to the person who ex-
ported them;
or92/111/EEC
77/388/EEC - - - I
90(c) the imported goods, within the meaning of paragraph
2 (a), are means of transport which were acquired or
imported before 1 January 1993, in accordance with
the general conditions of taxation in force on the do-
mestic market of a Member State, within the meaning
of Article 3, and/or have not been subject by reason
of their exportation to any exemption from or refund
of value added tax.
This condition shall be deemed to be fulfilled when
the date of the first use of the means of transport was
before 1 January 1985 or when the amount of tax due
because of the importation is insignificant.
TITLE XVI b
TRANSITIONAL PROVISIONS APPLICABLE IN THE FIELD
OF SECOND-HAND GOODS, WORKS OF ART,
COLLECTORS’ ITEMS AND ANTIQUES
Article 28o
1. Member States which at 31 December 1992 were ap-
plying special tax arrangements other than those provided
for in Article 26a (B) to supplies of second-hand means of
transport effected by taxable dealers my continue to apply
those arrangements during the period referred to in Article
28l (SIC! 281) in so far as they comply with, or are ad-
justed to comply with, the following conditions:
(a) the special arrangements shall apply only to supplies
of the means of transport referred to in Article 28a
(2) (a) and regarded as second-hand goods within the
meaning of Article 26a (A) (d), effected by taxable
dealers within the meaning of Article 26a (A) (e), and
subject to the special tax arrangements for taxing the
margin pursuant to Article 26a (B) (1) and (2). Sup-
plies of new means of transport within the meaning of
Article 28a (2) (b) that are carried out under the
conditions specified in Article 28c (A) shall be ex-
cluded from these special arrangements;
(b) the tax due in respect of each supply referred to in
(a) is equal to the amount of tax that would be due ifthat supply had been subject to the normal arrange-
ments for value added tax, less the amount of value
added tax regarded as being incorporated in the pur-
chase price of the means of transport by the taxable
dealer;
(c) the tax regarded as being incorporated in the pur-
chase price of the means of transport by the taxable
dealer shall be calculated according to the following
method:C2, OJ No L 197, 6. 8. 1993, p. 57
94/5/EC
77/388/EEC - - - I
91— the purchase price to be taken into account shall
b et h ep u r c h a s ep r i c ew i t h i nt h em e a n i n go fA r -
ticle 26a (B) (3),
— that purchase price paid by the taxable dealer
shall be deemed to include the tax that would
have been due if the taxable dealer’s supplier
had subjected the supply to the normal value
added tax arrangements,
— the rate to be taken into account shall be the
rate applicable within the meaning of Article 12
(1), in the Member State within which the place
of the supply to the taxable dealer, determined
in accordance with Article 8, is deemed to be
situated;
(d) the tax due in respect of each supply as referred to in
(a), determined in accordance with the provisions of
(b), may not be less than the amount of tax thatwould be due if that supply had been subject to the
special arrangements for taxing the margin in accor-
dance with Article 26a (B) (3).
For the application of the above provisions, the Mem-
ber States have the option of providing that if the
supply had been subject to the special arrangements
for taxation of the margin, that margin would not
have been less than 10 % of the selling price, within
the meaning of B (3);
(e) the taxable dealer shall not be entitled to indicate
separately on the invoices he issues, or on any other
document in lieu, tax relating to supplies which he is
subjecting to the special arrangements;
(f) taxable persons shall not be entitled to deduct from
t h et a xf o rw h i c ht h e ya r el i a b l et a xd u eo rp a i di n
respect of second-hand means of transport supplied to
them by a taxable dealer, in so far as the supply of
those goods by the taxable dealer is subject to the tax
arrangements in accordance with (a);
(g) by way of derogation from Article 28a (1) (a), intra-
Community acquisitions of means of transport are not
subject to value added tax where the vendor is a tax-
able dealer acting as such and the second-hand means
of transport acquired has been subject to the tax, in
the Member State of departure of the dispatch or
transport, in accordance with (a);
(h) Articles 28b (B) and 28c (A) (a) and (d) shall not
apply to supplies of second-hand means of transport
subject to tax in accordance with (a).94/5/EC
77/388/EEC - - - I
922. By way of derogation from the first sentence of para-
graph 1, the Kingdom of Denmark shall be entitled to
apply the special tax arrangements laid down in paragraph
1 (a) to (h) during the period referred to in Article 28l
(SIC! 281).
3. Where they apply the special arrangements for sales
by public auction provided for in Article 26a (C), Member
States shall also apply these special arrangements to sup-
plies of second-hand means of transport effected by an or-
ganizer of sales by public auction acting in his own name,
pursuant to a contract under which commission is payable
on the sale of those goods by public auction, on behalf of
a taxable dealer, in so far as the supply of the second-hand
means of transport, within the meaning of Article 5 (4)
(c), by that other taxable dealer, is subject to tax in ac-
cordance with paragraphs 1 and 2.
4. For supplies by a taxable dealer of works of art, col-
lectors’ items or antiques that have been supplied to him
under the conditions provided for in Article 26a (B) (2),
the Federal Republic of Germany shall be entitled, until
30 June 1999, to provide for the possibility for taxable
dealers to apply either the special arrangements for taxable
dealers, or the normal VAT arrangements according to the
following rules:
(a) for the application of the special arrangements for
taxable dealers to these supplies of goods, the taxable
amount shall be determined in accordance with Ar-
ticle 11 (A) (1), (2) and (3);
(b) in so far as the goods are used for the needs of his
operations which are taxed in accordance with (a), the
taxable dealer shall be authorized to deduct from the
tax for which he is liable:
— the value added tax due or paid for works of art,
collectors’ items or antiques which are or will be
supplied to him by another taxable dealer, where
the supply by that other taxable dealer has been
taxed in accordance with (a),94/5/EC
77/388/EEC - - - I
93— the value added tax deemed to be included in
the purchase price of the works of art, collectors’
items or antiques which are or will be supplied
to him by another taxable dealer, where the sup-
ply by that other taxable dealer has been subject
to value added tax in accordance with the special
arrangements for the taxation of the margin pro-
vided for in Article 26a (B), in the Member
State within whose territory the place of that
supply, determined in accordance with Article 8,
is deemed to be situated.
T h i sr i g h tt od e d u c ts h a l la r i s ea tt h et i m ew h e n
the tax due for te (SIC! the) supply taxed in ac-
cordance with (a) becomes chargeable;
(c) for the application of the provisions laid down in the
second indent of (b), the purchase price of the works
of art, collectors’ items or antiques the supply ofwhich by a taxable dealer is taxed in accordance with
(a) shall be determined in accordance with Article
26a (B) (3) and the tax deemed to be included in this
purchase price shall be calculated according to the
following method:
— the purchase price shall be deemed to include
the value added tax that would have been due if
the taxable margin made by the supplier had
been equal to 20 % of the purchase price,
— the rate to be taken into account shall be the
rate applicable, within the meaning of Article 12
(1), in the Member State within whose territory
the place of the supply that is subject to the
special arrangements for taxation of the profit
margin, determined in accordance with Article 8,
is deemed to be situated;
(d) where he applies the normal arrangements for value
added tax to the supply of a work of art, collectors’
item or antique which has been supplied to him by
another taxable dealer and where the goods have
been taxed in accordance with (a), the taxable dealer
shall be authorized to deduct from his tax liability the
value added tax referred to in (b);
(e) the category of rates applicable to these supplies of
goods shall be that which was applicable on 1 January
1993;94/5/EC
77/388/EEC - - - I
94(f) for the application of the fourth indent of Article 26a
(B) (2), the fourth indent of Article 26a (C) (1) and
Article 26a (D) (b) and (c), the supplies of works of
art, collectors’ items or antiques, taxed in accordance
with (a), shall be deemed by Member States to be
supplies subject to value added tax in accordance with
the special arrangements for taxation of the profit
margin provided for in Article 26a (B);
(g) where the supplies of works of art, collectors’ items or
antiques taxed in accordance with (a) are effected
under the conditions provided for in Article 28c (A),
the invoice issued in accordance with Article 22 (3)
shall contain an endorsement indicating that the
special taxation arrangements for taxing the margin
provided for in Article 28o (4) have been applied.
TITLE XVI c
Transitional measures applicable in the context of the
accession to the European Union of Austria, Finland and
Sweden
Article 28p
1. For the purpose of applying this Article:
— ‘Community’ shall mean the territory of the Commun-
ity as defined in Article 3 before accession,
— ‘new Member States’ shall mean the territory of the
Member States acceding to the European Union by
the T reaty signed on 24 June 1994, as defined for
each of those Member States in Article 3 of this Di-
rective,
— ‘enlarged Community’ shall mean the territory of the
Community as defined in Article 3, after accession.
2. When goods:
— entered the territory of the Community or of one of
the new Member States before the date of accession,
and
— were placed, on entry into the territory of the Com-
munity or of one of the new Member States, under atemporary admission procedure with full exemption
from import duties, under one of the regimes referred
to in Article 16 (1) (B) (a) to (d) or under a similar
regime in one of the new Member States,
and
— have not left that regime before the date of accession,
the provisions in force at the moment the goods were
placed under that regime shall continue to apply until the
goods leave this regime, after the date of accession.
3. When goods:94/5/EC
94/76/EC
77/388/EEC - - - I
95— w e r ep l a c e d ,b e f o r et h ed a t eo fa c c e s s i o n ,u n d e rt h e
common transit procedure or under another customs
transit procedure,
and
— have not left that procedure before the date of acces-
sion,
the provisions in force at the moment the goods were
placed under that procedure shall continue to apply until
the goods leave this procedure, after the date of accession.
For the purposes of the first indent, ‘common transit pro-
cedure’ shall mean the measures for the transport of goods
in transit between the Community and the countries of the
European Free T rade Association (EFTA) and between the
EFTA countries themselves, as provided for in the Con-
vention of 20 May 1987 on a common transit pro-
cedure (1).
4. The following shall be deemed to be an importation
of goods within the meaning of Article 7 (1) where it is
shown that the goods were in free circulation in one of the
new Member States or in the Community:
(a) the removal, including irregular removal, of goods
from a temporary admission procedure under which
they were placed before the date of accession under
the conditions set out in paragraph 2;
(b) the removal, including irregular removal, of goods
either from one of the regimes referred to in Article
16 (1) (B) (a) to (d) or from a similar regime under
which they were placed before the date of accession
under the conditions set out in paragraph 2;
(c) the termination of one of the procedures referred to
in paragraph 3 which was started before the date of
accession in one of new Member States for the pur-
poses of a supply of goods for consideration effected
before that date in that Member State by a taxable
person acting as such;
(d) any irregularity or offence committed during one of
the procedures referred to in paragraph 3 under the
conditions set out at (c).
5. The use after the date of accession within a Member
State, by a taxable or non-taxable person, of goods sup-
plied to him before the date of accession within the Com-
munity or one of the new Member States shall also be
deemed to be an importation of goods within the meaning
of Article 7 (1) where the following conditions are met:
— the supply of those goods has been exempted, or was
likely to be exempted, either under Article 15 (1) and(2) or under a similar provision in the new Member
States,
(1) OJ No L 226, 13. 8. 1987, p. 2.94/76/EC
77/388/EEC - - - I
96— the goods were not imported into one of the new
Member States or into the Community before the
date of accession.
6. In the cases referred to in paragraph 4, the place of
import within the meaning of Article 7 (3) shall be the
Member State within whose territory the goods cease to be
covered by the regime under which they were placed be-
fore the date of accession.
7. By way of derogation from Article 10 (3), the import-
ation of goods within the meaning of paragraphs 4 and 5
of this Article shall terminate without the occurrence of a
chargeable event when:
(a) the imported goods are dispatched or transported out-
side the enlarged Community;
or
(b) the imported goods within the meaning of paragraph
4 (a) are other than means of transport and are redis-patched or transported to the Member State from
which they were exported and to the person who ex-
ported them;
or
(c) the imported goods within the meaning of paragraph
4 (a) are means of transport which were acquired or
imported before the date of accession in accordance
with the general conditions of taxation in force on the
domestic market of one of the new Member States or
of one of the Member States of the Community and/
or have not been subject, by reason of their exporta-
tion, to any exemption from, or refund of, value
added tax.
This condition shall be deemed to be fulfilled when the
date of the first use of the means of transport was before
1 January 1987 or when the amount of tax due by reason
of the importation is insignificant.
TITLE XVII
VALUE ADDED TAX COMMITTEE
Article 29
1. An Advisory Committee on value added tax, herei-
nafter called ’the Committee’, is hereby set up.
2. The Committee shall consist of representatives of the
Member States and of the Commission.
The chairman of the Committee shall be a representative
of the Commission.
Secretarial services for the Committee shall be provided by
the Commission.
3. The Committee shall adopt its own rules of pro-
cedure.
4. In addition to points subject to the consultation pro-
vided for under this Directive, the Committee shall exam-
ine questions raised by its chairman, on his own initiative
or at the request of the representative of a Member State,
which concern the application of the Community provisions
on value added tax.94/76/EC
77/388/EEC
77/388/EEC - - - I
97TITLE XVIII
MISCELLANEOUS
Article 30
International Agreements
The Council, acting unanimously on a proposal from the
Commission, may authorize any Member State to conclude
with a non-member country or an international organiz-
ation an agreement which may contain derogations from
this Directive. A State wishing to conclude such an agree-
ment shall bring the matter to the notice of the Commis-
sion and provide all the information necessary for it to be
considered. The Commission shall inform the other
Member States within one month.
The Council’s decision shall be deemed to have been
adopted if, within two months of the other Member States
being informed as laid down in the previous paragraph, the
matter has not been raised before the Council.
Article 31
Unit of account
1. The unit of account used in the Directive shall be the
E u r o p e a nu n i to fa c c o u n t( E U A )d e f i n e db yD e c i s i o n
75/250/EEC (1).
2. When converting this unit of account into national
currencies, Member States shall have the option of round-
ing the amounts resulting from this conversion either up-
wards or downwards by up to 10%.
Article 32
Article 33
1. Without prejudice to other Community provisions, in
particular those laid down in the Community provisions in
force relating to the general arrangements for the holding,
movement and monitoring of products subject to excise
duty, this Directive shall not prevent a Member State from
maintaining or introducing taxes on insurance contracts,
taxes on betting and gambling, excise duties, stamp duties
and, more generally, any taxes, duties or charges whichcannot be characterized as turnover taxes, provided how-
ever that those taxes, duties or charges do not, in trade
between Member States, give rise to formalities connected
with the crossing of frontiers.
2. Any reference in this Directive to products subject to
excise duty shall apply to the following products as defined
by current Community provisions:
—m i n e r a l o i l s ,
— alcohol and alcoholic beverages,
— manufactured tobacco.
(1) OJ No L 104, 24. 4. 1975, p. 35.77/388/EEC
94/5/EC - - - deleted
91/680/EEC
77/388/EEC - - - I
98Article 33a
1. Goods referred to in Article 7 (1) (b) entering the
Community from a territory which forms part of the cus-
toms territory of the Community but which is considered
as a third territory for the purposes of applying this Direc-
tive shall be subject to the following provisions:
(a) the formalities relating to the entry of such goods into
the Community shall be the same as those laid down
by the Community customs provisions in force for the
import of goods into the customs territory of the
Community;
(b) when the place of arrival of the dispatch or transport
of these goods is situated outside the Member State
where they enter the Community, they shall circulate
in the Community under the internal Community
transit procedure laid down by the Community cus-
toms provisions in force, insofar as they have beenthe subject of a declaration placing them under this
regime when the goods entered the Community;
(c) when at the moment of their entry into the Commun-
ity the goods are found to be in one of the situations
which would qualify them, if they were imported with-
in the meaning of Article 7 (1) (a), to benefit from
one of the arrangements referred to in Article 16 (1)
(B) (a), (b), (c) and (d), or under a temporary ar-
rangement in full exemption from import duties, the
Member States shall take measures ensuring that the
goods may remain in the Community under the same
conditions as those laid down for the application of
such arrangements.
2. Goods not referred to in Article 7 (1) (a) dispatched
or transported from a Member State to a destination in a
territory that forms parts of the customs territory of the
Community but which is considered as a third territory for
the purposes of applying this Directive shall be subject to
the following provisions:
(a) the formalities relating to the export of those goods
outside the territory of the Community shall be the
same as the Community customs provisions in force
in relation to export of goods outside the customs
territory of the Community;
(b) for goods which are temporarily exported outside the
Community, in order to be reimported, the Member
States shall take the measures necessary to ensure
that, on reimportation into the Community, such
goods may benefit from the same provisions as if theyhad been temporarily exported outside the customs
territory of the Community.91/680/EEC
92/111/EEC
77/388/EEC - - - I
99TITLE XIX
FINAL PROVISIONS
Article 34
For the first time on 1 January 1982 and thereafter every
two years, the Commission shall, after consulting the
Member States, send the Council a report on the applica-
tion of the common system of value added tax in the
Member States. This report shall be transmitted by the
Council to the European Parliament.
Article 35
At the appropriate time the Council acting unanimously on
a proposal from the Commission, after receiving the opin-
ion of the European Parliament and of the Economic and
Social Committee, and in accordance with the interests of
the common market, shall adopt further Directives on the
common system of value added tax, in particular to restrict
progressively or to repeal measures taken by the Member
States by way of derogation from the system, in order to
achieve complete parallelism of the national value added
tax systems and thus permit the attainment of the objective
stated in Article 4 of the first Council Directive of 11
April 1967.
Article 36
The fourth paragraph of Article 2 and Article 5 of the first
Council Directive of 11 April 1967 are repealed.
Article 37
Second Council Directive 67/228/EEC of 11 April 1967 on
value added tax shall cease to have effect in each Member
State as from the respective dates on which the provisions
of this Directive are brought into application.
Article 38
This Directive is addressed to the Member States.77/388/EEC
77/388/EEC - - - I
100ANNEX A
LIST OF AGRICULTURAL PRODUCTION ACTIVITIES
I. CROP PRODUCTION
1. General agriculture, including viticulture2. Growing of fruit (including olives) and of vegetables,
flowers and ornamental plants, both in the open and
under glass
3. Production of mushrooms, spices, seeds and propagat-
ing materials; nurseries
II. STOCK F ARMING TOGETHER WITH CULTIV ATION
1. General stock farming
2. Poultry farming
3. Rabbit farming4. Beekeeping
5. Silkworm farming
6. Snail farming
III. FORESTR Y
IV . FISHERIES
1. Fresh-water fishing2. Fish farming
3. Breeding of mussels, oysters and other molluscs and
crustaceans
4. Frog farming
V . Where a farmer processes, using means normally employed
in an agricultural, forestry or fisheries undertaking, products
deriving essentially from his agricultural production, such
processing shall also be regarded as agricultural production77/388/EEC
77/388/EEC - - - I
101ANNEX B
LIST OF AGRICULTURAL SERVICES
Supplies of agricultural services which normally play a part in
agricultural production shall be considered the supply of agricul-tural services, and include the following in particular:
— field work, reaping and mowing, threshing, baling, collecting,
harvesting, sowing and planting
— packing and preparation for market, for example drying,
cleaning, grinding, disinfecting and ensilage of agricultural
products
— storage of agricultural products
— stock minding, rearing and fattening
— hiring out, for agricultural purposes, of equipment normally
used in agricultural, forestry or fisheries undertakings
— technical assistance
— destruction of weeds and pests, dusting and spraying of
crops and land
— operation of irrigation and drainage equipment
— lopping, tree felling and other forestry services77/388/EEC
77/388/EEC - - - I
102ANNEX C (1)
COMMON METHOD OF CALCULATION
I. For the purposes of calculating the value added for all agricultural, forestry
and fisheries undertakings, the following shall be taken into account exclusive
of value added tax:
1. the value of the total final production including farmers own consump-
tion of the classes ’agricultural products and game’ and ’wood in the
rough’ as set out in points IV and V below, plus the output of the pro-
cessing activities referred to in point V of Annex A;
2. the value of the total inputs required to achieve the production referred
to in (1);
3. the value of the gross fixed-asset formation in connection with the activi-
ties listed in Annexes A and B.
II. T o determine the deductible taxable inputs and outputs of flat-rate farmers,
the inputs and outputs of farmers taxed under the normal value added taxscheme shall be deducted from the national accounts, taking into account the
s a m ef a c t o r sa st h o s ei np a r a g r a p hI .
III. The value added for flat-rate farmers is equal to the difference between the
value of total final production, exclusive of value added tax, as referred to in
point I (1), and the total value of inputs as referred to in point I (2) togetherwith gross fixed-asset formation as referred to in point I (3). All these factors
relate to flat-rate farmers only.
IV . AGRICULTURAL PRODUCTS AND GAME
SOEC code number
Cereals (excluding rice)
Wheat and spelt 10.01.11 1
10.01.19 1
Winter vheat and spelt—
Spring wheat—
Durum wheat 10.01.51
10.01.59
Winter wheat—
Spring wheat—
Rye and meslin
Rye10.02.00
Winter rye—
Spring rye—
Meslin 10.01.11 2
10.01.192
(1) The classification used in this Annex is that used in the Economic Accounts for Agri-
culture of the Statistical Office of the European communities (SOEC).77/388/EEC
77/388/EEC - - - I
103SOEC code number
Barley 10.03.10
10.03.90
Spring barley—
Winter barley—
Oats and summer meslin
Oats 10.04.10
10.04.90
Summer meslin—
Maize 10.05.10
10.05.92
Other cereals (excluding rice)
Buckwheat10.07.10
Millet10.07.9 1
Grain sorghum10.07.95
Canary seed10.07.96
Cereals, not elsewhere specified (excluding
rice) 10.07.99
Rice (in the husk or paddy)10.06.11
Pulses
Dried peas and fodder peas07.05. 11
Dried peas (other than for fodder)—
Dried peas (excluding chick peas)—
Chick peas—
Fodder peas—
Haricot beans, broad and field beans
Haricot beans07.05. 15
B r o a da n df i e l db e a n s07.05.95
Other pulses
Lentils07.05.9 1
Vet ches12.03.3 1 2
Lupins12.03.49 2
Dried pulses not elsewhere specified, pulse
mixtures and cereal and pulse mixtures 07.05.97
R o o t s( b r a s s i c a sg r o u pf o rf o d d e r )
Potatoes
Potatoes (excluding seed potatoes)77/388/ECC
77/388/EEC - - - I
104SOEC code number
New potatoes 07.01.13
07.01.15
Main crop potatoes 07.01.17
07.01.19
Seed potatoes07.01.11
Sugar beet12.04.11
Mangolds and fodder beet; swedes, fodder car-
rots and fodder turnips; other roots and fodder
brassicas
Mangolds and fodder beet 

Swedes, fodder carrots, fodder turnips

121010
Swedes

12.10.10
Fodder carrots, fodder turnips

Fodder cabbages and kales12.10.99 2
Other roots and fodder brassicas
Jerusalem artichokes07.06. 10
Sweet potatoes07.06.50
Roots and fodder brassicas not elsewhere
specified07.06.30
12.10.99 3
Industrial crops
Oil seeds and oleaginous fruit (excluding olives)
Colza and rape seed12.01.91
Winter colza—
Summer colza—
Rape—
Sunflower seed12.01.95
Soya beans12.01.40
Castor seed12.01.50
Linseed 12.01.61
12.01.69
Sesame, hemp, mustard and poppy seed
Sesame seed12.01.97
Hemp seed12.01.94
Mustard seed12.01.92
Oil poppy and poppy seed12.01.93
Fibre plants
Flax54.01.1077/388/ECC
77/388/EEC - - - I
105SOEC code number
Hemp57.01.10
Unmanufactured tobacco (including dried tobac-
co)24.01.10
24.01.90
Hops12.06.00
Other industrial crops
Chicory roots12.05.00
Medicinal plants, aromatics, spices and
plants for perfume extraction
Saffron09.10.31
Caraway07.01.82
Medicinal plants, aromatics, spices and
plants for perfume extraction not else-
where specified09.09 ( 11-13-15-17-18)
09.10(11-20-5 1-55-7 1)
12.07 ( 10-20-30-40-50-
60-70-80-9 1-99)
Fresh vegetables
Cabbages for human consumption
Cauliflowers 07.01.21
07.01.22
Other cabbages
Brussels sprouts07.01.26
White cabbages 
070123
Red cabbages
07.01.23
Savoy cabbages 

Green cabbages

07.01.27 1
Cabbages not elsewhere specified

Leaf and stalk vegetables other than cabbages
Celery and celeriac 07.01.51
07.01.53
07.01.97 2
Leeks07.01.68
Cabbage lettuces 07.01.31
07.01.33
Endives07.01.36 1
Spinach07.01.29
Asparagus07.01.71
Witloof chicory07 01.34
Artichokes07.01.73
Other leaf and stalk vegetables
Corn salad07.01.36 277/388/ECC
77/388/EEC - - - I
106SOEC code number
Cardoons and edible thistle07.01.37
Fennel07.01.91
Rhubarb 
Cress

Parsley

07.01.97 1
Broccoli

07.01.97 1
Leaf and stalk vegetables not elsewhere spe-
cified


Vegetables grown for fruit
To m at o es 07.01.75
07.01.77
Cucumbers and gherkins 07.01.83
07.01.85
Melons08.09. 10
Aubergines, marrows and pumpkins, cour-
gettes 07.01.95
Sweet capsicum07.01.93
Other vegetables grown for fruit07.01.97 3
Root and tuber crops
Kohlrabi07.01.27 2
Turnips 
070154
Carrots
07.01.54
Garlic07.01.67
Onions and shallots07.01(62-63-66)
Beetroot (red beet) 

Salsify and scorzonera


07.01.56
070159
Other root and tuber crops (chives, radishes,
French turnips, horse radishes)

07.01.59
Pod vegetables
Green peas 07.01.41
07.01.43
Beans 07.01.45
07.01.47
Other pod vegetables07.01.49
Cultivated mushrooms07.01.87
Fresh fruit, including citrus fruit (excluding grapes
andolives)
Dessert apples and pears
Dessert apples08.06 ( 13-15-17)77/388/ECC
77/388/EEC - - - I
107SOEC code number
Dessert pears08.06 (36-38)
Cider apples and perry pears
Cider apples08.06. 11
Perry pears08.06.32
Stone fruit
Peaches08.07.32
Apricots08.07. 10
Cherries08.07 (5 1-55)
Plums (including greengages, mirabelles and
quetsches) 08.07 (7 1-75)
Other stone fruit08.07.90
Nuts
Walnuts08.05.3 1
Hazelnuts08.05.9 1
Almonds 08.05. 11
08.05. 19
Chestnuts08.05.50
Other nuts (excluding tropical nuts)
Pistaches08.05.70
Nuts not elsewhere specified08.05.97 1
Other tree fruits
Figs08.03. 10
Quinces08.06.50
Other tree fruits, not elsewhere specified
(excluding tropical fruit) 08.09.90 1
Strawberries08.08 ( 11-15)
Berries
Blackcurrants and red currants
Blackcurrants 
08.08.4 1
Red currants

08.08.49 1
Raspberries

Gooseberries

08.08.90 1
Other berries (e.g. cultivated blackberries)
08.09.90 2
Citrus fruit
Oranges08.02 (2 1-22-24-27)77/388/ECC
77/388/EEC - - - I
108SOEC code number
Mandarins and clementines08.02 (32-36)
Lemons08.02.50
Grapefruit08.02.70
Other citrus fruit08.02.90
Citrons—
Limes—
Bergamots—
Citrus fruit not elsewhere specified—
Grapes and olives
Grapes
Tab l e g r ap es08.04 (2 1-23)
O t h e rg r a p e s( f o rw i n e -making, fruit juice
production and processing into raisins) 08.04 (25-27)
Olives
Tab l e o l i v es07.01.78
O t h e ro l i v e s( f o ro l i v eo i lp r o d u c t i o n ) 07.01.79
07.03. 13
Other crop products
Fodder crops (1)12.10.99 1
Nursery products
Fruit trees and bushes06.02 ( 19-40-5 1-55)
Vine slips06.02 ( 10-30)
Ornamental trees and shrubs06.02 (7 1-75-79-98)
Forest seedlings and cuttings06.02.60
Vegetable materials used primarily for plaiting
Osier, rushes, rattans14.01(11-19-51-59)
Reeds, bamboos14.01(31-39)
Other vegetable materials used primarily for
plaiting 14.01.90
Flowers, ornamental plants and Christmas trees
Flower bulbs, corms and tubers06.01.10
Ornamental plants06.01(31-39)
Cut flowers, branches and foliage 06.03 ( 11-15-90)
06.04 (20-40-50)
Christmas trees06.04.90
(1) E.g. hay, clover (excluding brassicas).77/388/ECC
77/388/EEC - - - I
109SOEC code number
Perennial plants06.02.92
Seeds
Agricultural seeds (1) 06.02.95
12.03 ( 11-19-35-39-
44-46-84-86-89)
12.03.3 11
12.03.49 1
Flower seeds12.03.8 1
Products gathered in the wild (2) 07.01(88—89)
08.05.97 2
08.08.3 1
08.08.3508.08.49 2
08.08.90 2
23.06. 10 1
By-products from cultivation of: (
3)
Cereals (excluding rice) 

Rice


12.08 ( 10—31)
120890Pulses


12.08.90
12.09.00
130312Root crops


13.03.12
14.02 ( 10-21-23-25-29)
Industrial crops

14.03.00
14.04.00
Fresh vegetables


14.05 ( 11—19)
15.16.10
Fruit and citrus fruit

15.16.10
23.06. 102
23.06.30
Grapes and olives


23.06.30
13.01.00
Other crops

Crop products not elsewhere specified
Grape must and wine
Grape must22.04.00
Wine 22.05 (2 1-25-3 1-35-4 1-
44-45-47-5 1-57-
59-61-69)
By-products of wine production (4)23.05.00
Olive oil
Pure olive oil (5)15.07.06
Olive oil, unrefined (5)15.07 (07—08)
(1) Excluding cereal seeds, rice seeds and seed potatoes.
(2) E.g. wild mushrooms, cranberries, bilberries, blackberries, wild raspberries, etc.
(3) E.g. straw, beet and cabbage tops, pea and bean husks.
(4) E . g .w i n el e e s ,a r g o l ,e t c .
(5) The distinction between these two products is based on the method of processing rather than on different production stages.77/388/ECC
77/388/EEC - - - I
110SOEC code number
By-products of olive oil extraction (1)23.04.05
Cattle
Domestic cattle01.02 (11-13-14-15-17)
Calves—
Other cattle, less than one year old—
Heifers—
Cows—
Male breeding animals
One to two years old—
More than two years old—
Cattle for slaughtering and fattening
One to two years old—
More than two years old—
Pigs
Domestic pigs01.03 (11—15—17)
Piglets—
Young pigs—
Pigs for fattening—
Sows and gilts for breeding—
Breeding boars—
Equines
Horses01.01(11—15—19)
Donkeys01.01.31
Mules and hinnies01.01.50
Sheep and goats
Domestic sheep01.04 (11—13)
Domestic goats01.04.15
Poultry, rabbits, pigeons and other animals
H e n s ,c o c k s ,c o c k e r e l s ,p u l l e t s ,c h i c k s01.05 (10—91)
Ducks01.05.93
Geese01.05.95
(1) E.g. olive oil cakes and other residual products of olive oil extraction.77/388/EEC
77/388/EEC - - - I
111SOEC code number
Turkeys01.05.97
Guinea fowl01.05.98
Domestic rabbits01.06.10
Domestic pigeons01.06.30
Other animals
Bees—
Silkworms—
Animals reared for fur—
Snails (excluding sea -snails)03.03.66
Animals not elsewhere specified 01.06.99
02.04.99 1
Game and game meat
Game (1) 01.01.39
01.02.90
01.03.90
01.04.90
01.06.91
Game meat02.04.30
Milk, untreated
Cows’ milk—
Ewes’ milk—
Goats’ milk—
Buffalo milk—
Eggs
Hens’ eggs
Hatching eggs04.05. 12 1
Other04.05. 14
Other eggs
Hatching eggs04.05. 122
Other 04.05. 16
04.05. 18
Other livestock products
Raw wool (including animal hair (2) 53.01(10—20)
53.02 (93—95)
Honey04.06.00
(1) Live game includes only specially reared game and other game kept in captivity.
(2) If it is a principal product.77/388/EEC
77/388/EEC - - - I
112SOEC code number
Silkworm cocoons50.01.00
By-products of livestock production (1) 
15.15.10
4301(10—20—30—90)
Livestock products not elsewhere specified
43.01.(10—20—30—90)
53.02.97
Agricultural services (2)
Agricultural products almost exclusively imported
Tropical oil seeds and oleaginous fruit
Groundnuts 12.01.11
12.01.15
Copra12.01.20
Palm nuts and kernels12.01.30
Cotton seed12.01.96
Oil seeds and oleaginous fruit not elsewhere
specified 12.01.99
Tropical fibre plants
Cotton55.01.00
Other fibre plants
Manila hemp57.02.00
Jute57.03. 10
Sisal57.04. 10
Coir57.04.30
Ramie54.02.00
Fibre plants, not elsewhere specified57.04.50
Other tropical plants for industrial use
Coffee09.01.11
Cocoa18.01.00
Sugar cane12.04.30
Tropical fruit
Tropical nuts
Coconuts08.01.75
Cashew nuts08.01.77
Brazil nuts08.01.80
Pecans08.05.80
(1) E.g. skins and animal hair and pelts of slaughtered game, wax, manure, liquid manure.
(2) I.e. services which are normally provided by agricultural holdings themselves, e.g. ploughing, mowing and reaping threshing, tobacco drying,
sheep -shearing, care of animals.77/388/EEC
77/388/EEC - - - I
113SOEC code number
Other tropical fruit
Dates08.01.10
Bananas08.01(31—35)
Pineapples08.01.50
Papaws08.08.50
Tropical fruit, not elsewhere specified08.01(60—99)
Ivory, unpolished05.10.00
V . WOOD IN THE ROUGH
Coniferous timber for industrial uses
Coniferous long timber
—1 . l o g s
(1) fir, spruce, douglas
(2) pine, larch
— 2. mine timber
(1) fir, spruce, douglas
(2) pine, larch
— 3. other long timber
(1) fir, spruce, douglas
(2) pine, larch
Coniferous plywood— 1 fir, spruce, douglas
—2 p i n e , l a r c h
Coniferous firewood
Fir, spruce, douglas
Pine, larch
Leaf-wood for industrial uses
Long timber (leaf-wood)
—1 . l o g s
(1) oak(2) beech
(3) poplar
(4) other
— 2. mine timber
(1) oak
(2) other
— 3. other long timber
(1) oak(2) beech
(3) poplar
(4) other77/388/EEC
77/388/EEC - - - I
114Plywood (leaf)
—1 . o a k
— 2. beech
—3 . p o p l a r—4 . o t h e r
Firewood (leaf)
oakbeech
poplar
otherForestry services (
1)
Other products (e.g. bark, cork, resin)
(1) I.e. services which are usually performed by forestry undertakings themselves
(e.g. felling of timber).77/388/EEC
77/388/EEC - - - I
115ANNEX D
LIST OF THE ACTIVITIES REFERRED TO IN THE THIRD
PARAGRAPH OF ARTICLE 4 (5)
1. Telecommunications2. The supply of water, gas, electricity and steam
3. The transport of goods
4. Port and airport services5. Passenger transport
6. Supply of new goods manufactured for sale
7. The transactions of agricultural intervention agencies in re-
spect of agricultural products carried out pursuant to Re-
gulations on the common organization of the market in
these products
8. The running of trade fairs and exhibitions
9. Warehousing
10. The activities of commercial publicity bodies11. The activities of travel agencies
12. The running of staff shops, cooperatives and industrial can-
teens and similar institutions
13. Transactions other than those specified in Article 13 A (1)
(q), of radio and television bodies77/388/EEC
77/388/EEC - - - I
116ANNEX E
TRANSACTIONS REFERRED TO IN ARTICLE 28 (3) (A)
1.
2. Transactions referred to in Article 13 A (1) (e)
3.
4.
5.
6.
7. Transactions referred to in Article 13 A (1) (q)8.
9.
10.
11. Supplies covered by Article 13 B (g) in so far as they are
made by taxable persons who were entitled to deduction of
input tax on the building concerned
12.
13.
14.
15. The services of travel agents referred to in Article 26, and
those of travel agents acting in the name and on account of
the traveller, for journeys outside the Community77/388/EEC
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
77/388/EEC - - - I
117ANNEX F
TRANSACTIONS REFERRED TO IN ARTICLE 28 (3) (B)
1. Admission to sporting events
2. Services supplied by authors, artists, performers, lawyers
and other members of the liberal professions, other than
the medical and paramedical professions, in so far as these
are not services specified in Annex B to the second CouncilDirective of 11 April 1967
3.
4.
5. Telecommunications services supplied by public postal ser-
v i c e sa n ds u p p l i e so fg o o d si n c i d e n t a lt h e r e t o
6. Services supplied by undertakers and cremation services, to-
gether with goods related thereto
7. Transactions carried out by blind persons or workshops for
the blind provided these exemptions do not give rise to sig-nificant distortion of competition
8. The supply of goods and services to official bodies respon-
sible for the construction, setting out and maintenance ofcemeteries, graves and monuments commemorating war
dead
9.
10. Transactions of hospitals not covered by Article 13 A (1)
(b)
11.
12. The supply of water by public authorities13.
14.
15.
16. Supplies of those buildings and land described in Article 4
(3)
17. Passenger transport
The transport of goods such as luggage or motor vehicles
accompanying passengers and the supply of services related
to the transport of passengers, shall only be exempted in so
far as the transport of the passengers themselves is exempt
18.
19.
20.
21.
22.
23. The supply, modification, repair, maintenance, chartering
and hiring of aircraft, including equipment incorporated or
used therein, used by State institutions
24.77/388/EEC
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted89/465/EEC - - - deleted
89/465/EEC - - - deleted
89/465/EEC - - - deleted
77/388/EEC - - - I
11825. The supply, modification, repair, maintenance, chartering
and hiring of warships
26. Transactions concerning gold other than gold for industrial
use
27. The services of travel agents referred to in Article 26, and
those of travel agents acting in the name and on account of
the traveller, for journeys within the Community77/388/EEC
77/388/EEC - - - I
119ANNEX G
RIGHT OF OPTION
1. The right of option referred to in Article 28 (3) (c) may be
granted in the following circumstances:
(a) in the case of transactions specified in Annex E:
Member States which already exempt these supplies
but also give right of option for taxation, may main-tain this right of option
(b) in the case of transactions specified in Annex F:
Member States which provisionally maintain the right
to exempt such supplies may grant taxable persons the
right to opt for taxation.
2. Member States already granting a right of option for taxa-
tion not covered by the provisions of paragraph 1 above
may allow taxpayers exercising it to maintain it until at the
latest the end of three years from the date the Directivecomes into force.77/388/EEC
77/388/EEC - - - I
120ANNEX H
LIST OF SUPPLIES OF GOODS AND SERVICES WHICH
MAY BE SUBJECT TO REDUCED RATES OF VAT
In transposing the categories below which refer to goods into
national legislation, Member States may use the combined no-
menclature to establish the precise coverage of the category con-
cerned.
Category Description
1 Foodstuffs (including beverages but excluding
alcoholic beverages) for human and animalconsumption; live animals, seeds, plants andingredients normally intended for use in preparationof foodstuffs; products normally intended to be usedto supplement or substitute foodstuffs
2 Water supplies
3 Pharmaceutical products of a kind normally used for
health care, prevention of diseases and treatment formedical and veterinary purposes, including productsused for contraception and sanitary protection
4 Medical equipment, aids and other appliances
normally intended to alleviate or treat disability, forthe exclusive personal use of the disabled, includingthe repair of such goods, and children’s car seats
5 Transport of passengers and their accompanying
luggage
6 Supply, including on loan by libraries, of books
(including brochures, leaflets and similar printedmatter, children’s picture, drawing or colouring books,music printed or in manuscript, maps andhydrographic or similar charts), newspapers andperiodicals, other than material wholly orsubstantiallydevoted to advertising matter
7 Admissions to shows, theatres, circuses, fairs,
amusement parks, concerts, museums, zoos, cinemas,exhibitions and similar cultural events and facilitiesReception of broadcasting services
8 Services supplied by or royalties due to writers,
composers and performing artists
9 Supply, construction, renovation and alteration of
housing provided as part of a social policy
10 Supplies of goods and services of a kind normally
intended for use in agricultural production butexcluding capital goods such as machinery or buildings92/77/EEC
77/388/EEC - - - I
121Category Description
11 Accommodation provided by hotels and similar
establishments including the provision of holidayaccomodation (SCI! accommodation) and the lettingof camping sites and caravan parks
12 Admission to sporting events
13 Use of sporting facilities
14 Supply of goods and services by organizations
recognized as charities by Member States and engagedin welfare or social security work, insofar as theses u p p l i e sa r en o te x e m p tu n d e rA r t i c l e1 3
15 Services supplied by undertakers and cremation
services, together with the supply of goods relatedthereto
16 Provision of medical and dental care as well as thermal
treatment in so far as these services are not exemptunder Article 13
17 Services supplied in connection with street cleaning,
refuse collection and waste treatment, other than thesupply of such services by bodies referred to in Article4( 5 )92/77/EEC
77/388/EEC - - - I
122ANNEX I
W O R K SO FA R T ,C O L L E C T O R S ’I T E M SA N DA N T I Q U E S
For the purposes of this Directive:
(a) ‘works of art’ shall mean:
— pictures, collages and similar decorative plaques, paint-
ings and drawings, executed entirely by hand by the
artist, other than plans and drawings for architectural,engineering, industrial, commercial, topographical or
similar purposes, hand-decorated manufactured ar-
ticles, theatrical scenery, studio back cloths or the likeof painted canvas (CN code 9701),
— original engravings, prints and lithographs, being im-
pressions produced in limited numbers directly inblack and white or in colour of one or of several
plates executed entirely by hand by the artist, irrespec-
tive of the process or of the material employed byhim, but not including any mechanical or photome-
chanical process (CN code 9702 00 00),
— original sculptures and statuary, in any material, pro-
vided that they are executed entirely by the artist;
sculpture casts the production of which is limited to
eight copies and supervised by the artist or his suc-
cessors in title (CN code 9703 00 00); on an excep-
tional basis, in cases determined by the MemberStates, the limit of eight copies may be exceeded for
statuary casts produced before 1 January 1989,
— tapestries (CN code 5805 00 00) and wall textiles (CN
code 6304 00 00) made by hand from original designs
provided by artists, provided that there are not more
than eight copies of each,
— individual pieces of ceramics executed entirely by the
artist and signed by him,
— enamels on copper, executed entirely by hand, limited
to eight numbered copies bearing the signature of the
artist or the studio, excluding articles of jewellery and
goldsmiths’ and silversmiths’ wares,
— photographs taken by the artist, printed by him or
under his supervision, signed and numbered and li-
mited to 30 copies, all sizes and mounts included;
(b) ‘collectors’ items’ shall mean:
— postage or revenue stamps, postmarks, first-day covers,
pre-stamped stationary and the like, franked, or if un-franked not being of legal tender and not being in-
tended for use as legal tender (CN code 9704 00 00),94/5/EC
77/388/EEC - - - I
123— collections and collectors’ pieces of zoological, botan-
ical, mineralogical, anatomical, historical, archaeologi-
cal, palaetological, ethnographic or numismatic interest
( CN code 9705 00 00);
(c) ‘antiques’ shall mean objects other than works of art or col-
lectors’ items, which are more than 100 years old (CN code
9706 00 00).94/5/EC
77/388/EEC - - - I
124ANNEX J
Description of goods CN code
Tin 8001
Copper 7402 pp
7403
7405
74087408
Zinc 7901
Nickel 7502
Aluminium 7601
Lead 7801
Indium ex 8112 91
ex 8112 99
Cereals 1001 to 1005
1006: unprocessed rice only
1007 to 1008
Oil seeds and oleaginous fruit 1201 to 1207
Coconuts, Brazil nuts and
cashew nuts0801
Other nuts 0802
Olives 0711 20
Grains and seeds (including soya
beans1201 to 1207
Coffee, not roasted 0901 11 00
0901 12 00
Tea 0902
Cocoa beans, whole or broken,
raw or roasted1801
Raw sugar 1701 11
1701 12
Rubber, in primary forms or in
plates, sheets or strip4001
4002
Wool 5101
Chemicals in bulk Chapters 28 and 29
Mineral oils (including propane
and butane; also including crudepetroleum oils)2709
2710
2711 12
2711 13
Silver 710695/7/EC
77/388/EEC - - - I
125Description of goods CN code
Platinum (palladium, rhodium) 7110 11 00 (p )
7110 21 00
71103100 7110 31 00
Potatoes 0701
Vegetable oils and fats and their
fractions, whether or not refined,
but not chemically modified1507 to 151595/7/EC