16 OfficialJournaloftheEuropeanCommunities
14.4.67 OFFICIALJOURNALOFTHEEUROPEAN COMMUNITIES 1303/67
SECONDCOUNCILDIRECTIVE
of11April1967
ontheharmonisation oflegislationofMemberStatesconcerningturnovertaxes
Structureandproceduresforapplicationofthecommonsystemofvalueaddedtax
(67/228/EEC)
THECOUNCIL OFTHEEUROPEAN ECONOMIC
COMMUNITY ,
HavingregardtotheTreatyestablishingtheEuro­
peanEconomicCommunity,andinparticular
Articles99and100thereof;
HavingregardtotheFirstCouncilDirectiveof11
April19671ontheharmonisation oflegislationof
MemberStatesconcerningturnovertaxes;
HavingregardtotheproposalfromtheCommission ;
HavingregardtotheOpinionoftheEuropeanPar­
liament;
HavingregardtotheOpinionoftheEconomicand
SocialCommittee;
Whereasthereplacementoftheturnovertaxesin
forceinMemberStatesbyacommonsystemof
valueaddedtaxisintendedasameansofattaining
theobjectivessetoutintheFirstDirective;
Whereas,untiltheabolitionoftheimpositionoftax
onimportationandtheremissionoftaxonexporta­
tion,itispossibletograntMemberStatessubstantial
autonomyindeterminingtherateordifferentialrates
oftax;
Whereasitisalsopossibletoacceptonatransitional
basiscertaindifferencesintheprocedureforapplying
thetaxinMemberStates;whereasitis,however,
necessarytomakeprovisionforappropriatepro­
cedurestoensureneutralityincompetitionbetween
MemberStatesandtorestrictprogressivelyorto
abolishthedifferencesinquestion,sothatnational
systemsofvalueaddedtaxmaybebroughtintoalignment,therebypreparingthewayfortheattain­
mentoftheobjectivesetoutinArticle4oftheFirst
Directive;
Whereas,inordertoenablethesystemtobeapplied
inasimpleandneutralmanner,andtokeepthe
standardrateoftaxwithinreasonablelimits,itis
necessarytolimitspecialsystemsandexceptional
measures ;
Whereasthesystemofvalueaddedtaxmakesit
possible,whereappropriate ,forsocialandeconomic
reasons,toeffectreductionsorincreasesinthetax
burdenoncertaingoodsandservicesbymeansofa
differentiation intherates,buttheintroductionof
zeroratesgivesrisetodifficulties,sothatitishighly
desirabletolimitstrictlythenumberofexemptions
andtomakethereductionsconsiderednecessaryby
.applyingreducedrateswhicharehighenoughtopermit
innormalcircumstances thedeductionofthetax
paidattheprecedingstage,whichmoreoverachieves
ingeneralthesameresultasthatatpresentobtained
bytheapplicationofexemptionsincumulativemulti­
stagesystems;
WhereasithasprovedpossibletoleaveMember
Statesthemselvestomakerulesconcerningthenu­
merousserviceswhosecosthasnoinfluenceonthe
pricesofgoods,andthesystemstobeappliedinthe
caseofsmallundertakings ,subject,asregardsthelat­
ter,topriorconsultation ;
Whereasithasprovednecessarytoprovidefor
specialsystemsfortheapplicationofthevalueadded
taxtotheagriculturalsectorandtorequesttheCom­
missiontosubmittotheCouncil,assoonaspos­
sibleproposalstothiseffect;
Whereasitisnecessarytoprovideforaratherlarge
numberofspecialprovisionscoveringinterpretation ,
derogationsandcertaindetailedapplicationpro­
cedures,andtoestablishalistoftheservicescom­1OJNo71,14.4.1967,p.1301.

OfficialJournaloftheEuropeanCommunities 17
pulsorilysubjecttothecommonsystem;andwhereas
theseprovisionsandthislistshouldappearinthe
AnnexesforminganintegralpartofthisDirective;
HASADOPTED THISDIRECTIVE :
Article1
MemberStatesshallintroduce,inaccordancewitha
commonsystem,ataxonturnover (hereinafter
called'valueaddedtax').
Thestructureof,andproceduresforapplyingthis
taxshallbeestablishedbyMemberStatesinaccord­
ancewiththeprovisionsofthefollowingArticlesand
ofAnnexesAandB.
Article2
Thefollowingshallbesubjecttothevalueadded
tax:
(a)Thesupplyofgoodsandtheprovisionofservices
withintheterritoryofthecountrybyataxable
personagainstpayment;
(b)theimportationofgoods.feetthatownershipshallpassatthelatestupon
paymentofthefinalinstalmentdue;
(b)thetransfer,byorderofapublicauthority,of
ownershipingoodsagainstpaymentofcompen­
sation;
(c)thetransferofgoodspursuanttoacontract
underwhichcommissionispayableonpurchase
orsale;
(d)thedeliveryofmoveablepropertyproduced
underacontractforwork,thatistosaythe
handingoverbyacontractortohiscustomerof
moveablepropertywhichhehasmadefrom
materialsandobjectsentrustedtohimbythe
customerforthispurpose,whetherornotthe
contractorhasprovidedapartoftheproducts
used;
(e)thedeliveryupofworksofconstruction ,includ­
ingthoseinwhichmoveablepropertyisincorpor­
atedinimmoveableproperty.
3.Thefollowingshallbetreatedassupplyagainst
payment :
(a)theappropriation byataxableperson,fromhis
undertaking,ofgoodswhichheappliestohis
ownprivateuseortransfersfreeofcharge;
(b)theusefortheneedsofhisundertaking ,byatax­
ableperson,ofgoodsproducedorextractedby
himorbyanotherpersononhisbehalf.
4.Theplaceofsupplyshallbedeemedasbeing:
(a)incaseswherethegoodsaredispatchedortrans­
portedeitherbythesupplierorbytheconsignee,
orbyathirdperson:theplacewherethegoods
wereatthetimewhenthedispatchortransport
totheconsigneebegan;
(b)incaseswherethegoodsarenotdispatchedor
transported :theplacewherethegoodswereat
thetimeofsupply.
5.Thechargeableeventshalloccuratthemoment
whendeliveryiseffected.Inthecase,however,of
supplyinvolvingpaymentsonaccountbeforedeliv­
ery,itmaybeprovidedthatthechargeableevent
shallalreadyhaveoccurredatthemomentofissueof
theinvoiceor,atthelatest,atthemomentofreceipt
ofthepayment,inrespectofthewholeofthe
amountinvoicedorreceived.Article3
'Territoryofthecountry'meanstheterritoryin
whichtheStateconcernedappliesthevalueadded
tax;thisterritoryshall,asageneralrule,includethe
wholeofthenationalterritory,includingterritorial
waters.
Article4
'Taxableperson'meansanypersonwhoindepen­
dentlyandhabituallyengagesintransactionspertain­
ingtotheactivitiesofproducers,tradersorpersons
providingservices,whetherornotforgain.
Article5
1.'Supplyofgoods'meansthetransferoftheright
todisposeoftangiblepropertyasowner.
2.Thefollowingshallalsobeconsideredassupply
withinthemeaningofparagraph1:
(a)theactualhandingoverofgoods,underacon­
tractwhichprovidesforthehiringofgoodsfora
certainperiod,orthesaleondeferredtermsof
goods,inbothcasessubjecttoaclausetotheef­Article6
1.'Provisionofservices'meansanytransaction
whichdoesnotconstituteasupplyofgoodswithin
themeaningofArticle5.

18 OfficialJournaloftheEuropeanCommunities
shallapplywhenthegoodsareexemptfromcus­
'tomsdutiesorarenotsubjecttoadvaloremcus­
tomsduties.
Inthecaseofimportationofgoods,eachMember
Statemayaddtothebasisofassessmenttheinciden­
talexpenses(packing,transport,insurance,etc.)aris­
inguptotheplaceofdestinationwhichhavenot
beenincludedinthatbasis.2.TheruleslaiddowninthisDirectiveasregards
thetaxationoftheprovisionofservicesshallbecom­
pulsorilyapplicableonlytoserviceslistedinAnnex
B.
3.Theplaceoftheprovisionofserviceshall,asa
generalrule,beregardedasbeingtheplace\yherethe
servicesprovided,therighttransferredorgranted,or
theobjecthired,isusedorenjoyed.
4.Thechargeableeventshalloccuratthemoment
whentheserviceisprovided.Inthecase,however,of
theprovisionofservicesofindeterminate lengthor
exceedingacertainperiodorinvolvingpaymentson
account,itmaybeprovidedthatthechargeableevent
shallalreadyhaveoccurredatthemomentofissueof,
theinvoiceor,atthelatest,atthemomentofthere­
ceiptofthepaymentonaccount,inrespectofthe
wholeoftheamountinvoicedorreceived.Article9
Article71.Thestandardrateofvalueaddedtaxshallbe
fixedbyeachMemberStateatapercentageofthe
basisofassessmentwhichshallbethesameforthe
supplyofgoodsandfortheprovisionofservices.
2.Incertaincases,thesupplyofgoodsandthe
provisionofservicesmay,however,besubjecttoin­
creasedratesortoreducedrates.Eachreducedrate
shallbedeterminedinsuchamannerthatthe
amountcfvalueaddedtaxresultingfromtheappli­
cationofthisrateshallnormallypermitthededuc­
tionofthewholeofthevalueaddedtaxwhichisde­
ductibleunderArticle11.
3.Therateapplicabletoimportationofgoods
shallbethatwhichisappliedintheterritoryofthe
countrytothesupplyoflikegoods.1.'Importationofgoods'meanstheentryofsuch
goodsintothe'territoryofthecountry'withinthe
meaningofArticle3.
2.Atimportation,thechargeableeventshalloccur
atthetimeofsuchentry.MemberStatesmay,how­
ever,linkthechargeableeventandthedatewhen
paymentofvalueaddedtaxfallsduewiththe
chargeableeventandthedatewhenpaymentofcus­
tomsdutiesorotherimporttaxes,chargesandlevies
fallsdue.
Thesamelinkmaybeestablished,asregardsthe
chargeableeventandthedatewhenpaymentofvalue
addedtaxfallsdue,inrespectofthesupplyofim­
portedgoodsplacedunderasystemofsuspensionof
customsdutiesorothertaxes,chargesorlevies.Article10
1.Thefollowingshallbeexemptedfromvalue
addedtaxonconditionslaiddownbyeachMember
State:
(a)thesupplyofgoodsconsignedortransportedto
placesoutsidetheterritoryinwhichtheState
concernedappliesvalueaddedtax;
(b)theprovisionofservicesrelatingtogoods
coveredby(a)orintransit.
2.Theprovisionofservicesrelatingtoimporta­
tionsofgoodsmay,subjecttotheconsultationsmen­
tionedinArticle16,beexemptedfromvalueadded
tax.
3.EachMemberStatemay,subjecttotheconsul­
tationsmentionedinArticle16,determinetheother
exemptionswhichitconsidersnecessary.Article8
Thebasisofassessmentshallbe:
(a)inthecaseofsupplyofgoodsandofthepro­
visionofservices,everythingwhichmakesupthe
considerationforthesupplyofthegoodsorthe
provisionofservices,includingallexpensesand
taxesexceptthevalueaddedtaxitself;
(b)inthecaseofthetransactionsreferredtoin
Article5(3)(a)and(b),thepurchasepriceof
thegoodsoroflikegoodsor,ifthereisnopur­
chaseprice,thecostprice;
(c)inthecaseofimportationofgoods,thecustoms
value,plusallduties,taxes,chargesandlevies
duebyreasonofimportation,exceptthevalue
addedtaxitself.ThesamebasisofassessmentArticle11
1.Wheregoodsandservicesareusedforthepur­
posesofhisundertaking ,thetaxablepersonshallbe
authorisedtodeductfromthetaxforwhichheisli­
able:

OfficialJournaloftheEuropeanCommunities 19
2.Everytaxablepersonshallissueaninvoicein
respectofgoodssuppliedandservicesprovidedby
himtoanothertaxableperson.
3.Everytaxablepersonshalleachmonthlodgea
declarationshowing,inrespectoftransactionscar­
riedoutduringtheprecedingmonth,alltheinforma­
tionrequiredtocalculatethetaxandthedeductions
tobemade.Everytaxablepersonshallpaythe
amountofthevalueaddedtaxwhenlodgingthede­
claration.
Article13(a)thevalueaddedtaxinvoicedtohiminrespectof
goodssuppliedtohimorinrespectofservices
renderedtohim;
(b)thevalueaddedtaxpaidinrespectofimported
goods;
(c)thevalueaddedtaxwhichhehaspaidinrespect
oftheuseofgoodsreferredtoinArticle
5(3)(b).
2.Valueaddedtaxongoodsandservicesusedin
non-taxableorexempttransactionsshallnotbe
deductible .
Thetaxablepersonshallhoweverbeauthorisedto
makethedeductionifthesupplyofgoodsorthepro­
visionofservicestakesplaceabroadorisexempt
underArticle10(1)or(2).
Asregardsgoodsandserviceswhichareusedbothin
transactionsgivingentitlementtodeductionandin
transactionswhichdonotgiveentitlementtodeduc­
tion,deductionshallonlybeallowedforthatpartof
thevalueaddedtaxwhichisproportionaltothe
amountrelatingtothetransactionsgivingentitlement
todeduction(proratarule).
3.Thedeductionshallbemadefromthevalue
addedtaxduefortheperiodduringwhichdeductible
taxisinvoicedinthecaseofparagraph1(a)orpaid
inthecaseofparagraph1(b)and(c)(immediatede­
ductions).
Inthecaseofapartialdeductionunderparagraph2
theamountofthedeductionshallbeprovisionally
determinedinaccordancewithcriteriaestablishedby
eachMemberStateandfinallyadjustedaftertheend
oftheyearwhentheproratafigurefortheyearof
acquisitionhasbeencalculated.
Asregardscapitalgoods,theadjustmentshallbeef­
fectedonthebasisofthevariationsoftheprorata
figurewhichhaveoccurredduringaperiodoffive
yearsincludingtheyearduringwhichthegoodswere
acquired;theadjustmentshallapplyeachyearto
onlyone-fifthofthetaxbornebycapitalgoods.
4.Certaingoodsandservicesmaybeexcluded
fromthedeductionsystem,inparticularthosecapable
ofbeingexclusivelyorpartiallyusedfortheprivate
needsofthetaxablepersonorofhisstaff.ShouldaMemberStateconsiderthat,inexceptional
cases,specialmeasuresshouldbeadoptedinorderto
simplifythechargingprocedureinrespectofthetax
ortopreventcertainfrauds,itshallsoinformthe
CommissionandtheotherMemberStates.
Shouldthere,withinonemonth,beobjectionsfrom
oneormoreStatesorfromtheCommission ,there­
questforderogationshallbebroughtbeforethe
Council,whichshallactonaproposalfromthe
Commissionwithinthreemonths.
ShoulditappearfromtheconclusionoftheCom­
missionthatonlyasimplification ofthecharging
procedureorameasuredesignedtopreventfraud
isinvolved,theCouncilshallactbyaqualified
majorityonthederogationrequested.
Shoulditappear,onthecontrary,fromthoseconclu­
sionsthattheproposedmeasuremightbeprejudicial
totheveryprinciplesofthesystemintroducedbythis
Directive,andinparticulartoneutralityincompeti­
tionbetweenMemberStates,theCouncilshallact
unanimously .
Ineithercase,theCouncilshallactinaccordance
withthesameprocedureasregardstheperiodof
applicationofsuchmeasures.
TheStateconcernedmaynotapplytheproposed
measuresuntiltheperiodforenteringobjectionshas
expiredor,wheretherehavebeenobjections,until
aftertheCouncil'sdecision,ifsuchdecisionisfavour­
able.
Theseprovisionsshallceasetobeapplicablewhen
theimpositionoftaxonimportationandtheremis­
sionoftaxonexportationareabolishedintradebe­
tweenMemberStates.
Article12
Article14
1.Everytaxablepersonshallkeepsufficientlyde­
tailedaccountstopermitapplicationofthevalue
addedtaxandinspectionbythetaxauthorities.EachMemberStatemay,subjecttotheconsultations
mentionedinArticle16,applytosmallundertakings

20 OfficialJournaloftheEuropeanCommunities
whosesubjectiontothenormalsystemofvalueadded
taxwouldmeetwithdifficultiesthespecialsystem
bestsuitedtonationalrequirementsandpossibilities .
Article15ofoneyearfromtheintroductionofvalue
addedtax.Inthatevent,suchdeductionsshall
onlybeallowedinrespectofstocksinhandat
thetimereferredtoaboveandexportedinan
unalteredstate;
—provideforreducedratesorevenexemptions
withrefund,ifappropriate,ofthetaxpaidatthe
precedingstage,wherethetotalincidenceofsuch
measuresdoesnotexceedthatofthereliefsap­
pliedunderthepresentsystem.Suchmeasures
mayonlybetakenforclearlydefinedsocialrea­
sonsandforthebenefitofthefinalconsumer,
andmaynotremaininforceaftertheabolitionof
theimpositionoftaxonimportationandthere­
mission.oftaxonexportationintradebetween
MemberStates.1.TheCommissionshallsubmittotheCouncil,as
soonaspossible,proposalsforDirectivesoncom­
monprocedures ,forapplyingvalueaddedtaxto
transactionsrelatingtoagriculturalproducts.
2.UntilthedatefixedintheDirectivereferredto
inparagraph1fortheapplicationofsuchcommon
procedures,eachMemberStatemay,subjecttothe
consultationsmentionedinArticle16,applytounder­
takingsintheagriculturalsectorwhosesubjection
tothenormalsystemofvalueaddedtaxwouldmeet
withdifficultiesthespecialsystembestsuitedto
nationalrequirementsandpossibilities .Article18
Article16TheCommissionshall,afterconsultingtheMember
States,submittotheCouncil,forthefirsttimeon1
January1972andeverytwoyearsthereafter,areport
ontheoperationofthecommonsystemofvalue
addedtaxinMemberStates.WhereaMemberStatemust,inaccordancewiththe
provisionsofthisDirective,enterintoconsultations ,
itshallreferthemattertotheCommissioningood
time,havingregardtotheapplicationofArticle102
oftheTreaty.Article19
Article17
Withaviewtothetransitionfromthepresentsys­
temsofturnovertaxestothecommonsystemofTheCouncilshall,intheinterestofthecommon
market,adoptatthepropertime,onaproposalfrom
theCommission,theappropriateDirectivestocom­
pletethecommonsystemofvalueaddedtax,andin
particulartorestrictprogressivelyortoabolish
measuresadoptedbyMemberStatesinderogation
fromthissystem,sothatnationalsystemsofvalue
addedtaxmaybebroughtintoalignment,thereby
preparingthewayfortheattainmentoftheobjective
setoutinArticle4oftheFirstDirective.valueaddedtax,MemberStatesmay:
Article20—adopttransitionalmeasurestolevythetaxinad­
vance;
—apply,duringacertaintransitionalperiod,inre­
spectofcapitalgoods,themethodofdeduction
byannualinstalments (deductionsproratatem­
poris);
—exclude,inwholeorinpart,duringacertain
transitionalperiod,capitalgoodsfromthededuc­
tionsystemprovidedforinArticle11;
and,subjecttotheconsultationsmentionedinArticleTheAnnexesshallformanintegralpartofthisDi­
rective.
Article21
ThisDirectiveisaddressedtotheMemberStates.16:
DoneatBrussels,11April1967.—authorise(inordertograntrelief,totalorpartial,
butgeneralinscope,fromtheturnovertax
chargeduptothetimeofintroducingvalueadded
tax)standarddeductionsinrespectofcapital
goodsnotyetwrittenoffandofstocksinhandat
thattime.MemberStatesmay,however,restrict
suchdeductionstogoodsexportedduringaperiodFortheCouncil
ThePresident
R.VANELSLANDE

OfficialJournaloftheEuropeanCommunities 21
ANNEXA
1.RegardingArticle3 5.RegardingArticle5(2)(d)and(e)
IfaMemberStateintendstoapplyvalueaddedtaxina
territorysmallerthanitsnationalterritory,itshallenter
intotheconsultations mentionedinArticle16.
2.RegardingArticle4MemberStateswhich,forspecificallynationalreasons,
cannotconsiderthetransactions referredtoinArticle
5(2)(d)and(e)assupplyshallclassifytheminthecate­
goryofprovisionofservices,.subjectingthemtotherate
whichwouldbeapplicabletothemiftheywereconsidered
assupply.
Thefollowing,interalia,shallbeconsideredas'worksof
construction ':
—theconstructionofbuildings,bridges,roads,ports,
etc.,inperformanceofabuildingcontract;
—earth-movingandplantingofgardens;
—installationwork(ofcentralheating,forexample);
—repairstobuildings,otherthancurrentmaintenance .
6.RegardingArticle5(3)(a)Theexpression'activitiesofproducers,traders,orpersons
providingservices'istobeunderstoodinawidesense
andtocoveralleconomicactivities,including,therefore,
activitiesoftheextractiveindustries,agricultureandthe
professions .
IfaMemberStateintendsnottotaxcertainactivities,it
shouldachieveitspurposebymeansofexemptionsrather
thanbyexcludingfromthescopeofthetaxpersonspur­
suingsuchactivities.
MemberStatesmayalsoconsiderasa'taxableperson'
anyonewhoengagesoccasionallyinthetransactions
referredtoinArticle4.
Theexpression'independently 'isintendedinparticularto
excludefromtaxationwage-earnerswhoareboundto
theiremployerbyacontractofservice.Thisexpression
alsomakesitpossibleforeachMemberStatenottocon­
siderasseparatetaxablepersons,butasonesingletaxable
person,personswho,althoughindependentfromthelegal
pointofview,are,however,organicallylinkedtoonean­
otherbyeconomic,financialororganisational relation­
ships.AnyMemberStateintendingtoadoptsuchasys­
temshallenterintotheconsultations mentionedinArticle
16.
States,regionalandlocalgovernmentbodiesandother
publiccorporatebodiesshallnotasageneralrulebecon­
sideredastaxablepersonsinrespectofactivitieswhich
theypursueintheirofficialcapacityasofficialauthorities.
If,however,theypursueactivitiesasproducers,traders,or
providersofservices,theymaybeconsideredasliabletoAsregardstheappropriation ofgoodsinanunaltered
stateboughtbyataxableperson,MemberStatesmay,in­
steadoftaxing,forbiddeductionoradjustitifdeduction
hasalreadybeeneffected.However,appropriationforgiv­
inggiftsofsmallvalueandsamples,whichfromthetax
pointofviewmaybeclassifiedasoverheadexpenses,
shallnotbeconsideredastaxablesupply.Moreover,the
provisionsofArticle11(2)shallnotbeapplicabletosuch
appropriations .
7.RegardingArticle5(3)(b)
Thisprovisionshallonlybeappliedtoensureequalityof
taxationbetween,ontheonehand,goodspurchasedand
intendedfortheneedsoftheundertaking,andinrespect
ofwhichthereisnoentitlementtoimmediateorcomplete
deduction,and,ontheotherhand,goodsproducedorex­
tractedbythetaxablepersonoronhisbehalfbyathird
personwhicharealsousedforthesameneeds.
8.RegardingArticle5(5) taxinrespectofsuchactivities.
3.RegardingArticleS(1)The'chargeableevent'meanstheeventgivingrisetothe
tax.
9.RegardingArticle6(1)'Tangibleproperty'meansbothmoveableandimmove­
abletangibleproperty.
Thesupplyofelectriccurrent,gas,heat,refrigerationand
thelikeshallbeconsideredassupplyofgoods.
Incaseofcontributiontoacompanyofthewholeorpart
ofthecontributor'sassets,MemberStatesmayregardthe
benefitingcompanyasthesuccessorintitleofthecontri­
butor.Thedefinitionofprovisionofservicesgiveninthispara­
graphinvolvesclassificationof,interalia,thefollowingas
provisionofservices:
—theassignmentofintangibleproperty;
—thecarryingoutofanobligationtorefrainfromdoing
something;
—thecarryingoutofaservicerenderedbyorderofa
publicauthority;
—thecarryingoutofworkongoods,ifsuchworkisnot
consideredassupplywithinthemeaningofArticle5
(2)(d)and(e)as,forexample,currentmaintenance
work,thelaunderingoflinen,etc.4.RegardingArticle5(2)(a)
ForthepurposesofthisDirective,thecontractreferredto
inArticle5(2)(a)mustnotbesubdividedintoparthire
andpartsale,butshallberegarded,assoonasconcluded,
asacontractinvolvingataxablesupply.

OfficialJournaloftheEuropeanCommunities 22
ThisdefinitionshallnotpreventtaxationbyMember
Statesofcertaintransactionsengagedinbyataxableper­
sonasservices'renderedtooneself'whensuchameasure
provesnecessaryinordertoavoiddistortionofcompe­
tition.Further,theexpensespaidinthenameandfortheac­
countofthecustomerwhichareshownintheaccountsof
thesupplierastransitoryitemsshallnotbeincludedin*
thebasisofassessment .
Thecustomsdutiesandothercharges,taxes,etc.,paidat
importationbyagentsandotherintermediaries incustoms
clearanceincludingforwardingagents,undertheirown
name,mayalsobeexcludedfromthebasisofassessment
corresponding totheservicestheyhaveprovided.10.RegardingArticle6(2)
MemberStatesshallrefrain,asfaraspossible,"fromgrant­
ingexemptionfromtaxinrespectoftheprovisionofthe
serviceslistedinAnnexB.
14.RegardingArticle8(c)
11.RegardingArticle6(3)
TheCouncilshall,actingunanimouslyonaproposalfrom
theCommission,laydown,before1January1970,special
rulesconcerningcertainservicesforwhichsuchrulesmay
provenecessary,derogatingwhereappropriatefromthe
provisionsofArticle6(3).Untilthoseruleshavebeen
laiddown,eachMemberStatemay,inordertosimplify
theprocedureforchargingthetax,derogatefromthepro­
visionsofArticle6(3);itshall,however,taketheneces­
sarystepstoavoiddoubletaxationornon-taxation .Inintra-Communitytrade,MemberStatesshallendeavour
toapplytoimportationsofgoodsabasisofassessment
whichcorresponds,asfaraspossible,tothatusedforsup­
plymadewithintheterritoryofthecountry;thisbasis
shallincludethesamecomponentsasthosetakeninto
accountpursuanttoArticle8(c).
Untiltheabolitionoftheimpositionoftaxonimporta­
tionandtheremissionoftaxonexportationintradebe­
tweenMemberStatesatthelatest,andsubjecttothecon­
sultationsmentionedinArticle16,eachMemberState
mayapplytoimportationsofgoodsfromthirdcountries
abasisofassessmentwhichcorresponds,asfaraspossi­
ble,tothatusedforsupplywithintheterritoryofthe
country;thisbasisshallincludethesamecomponentsas
thosetakenintoaccountpursuanttoArticle8(c).12.RegardingArticle8
15.RegardingArticle9(2)
Wherethis'paragraphisappliedtothetransportservices
referredtoinAnnexB,item5,itmustbesoappliedasto
ensureequalityof;treatmentasbetweenthedifferent
modesoftransport.AnyMemberStatewhichappliesvalueaddedtaxonlyup
toandincludingthewholesalestagemay,inthecaseof
goodssoldbyretailbyataxableperson,reducethebasis
ofassessmentbyacertainpercentage;thebasisthusre­
ducedshallnot,however,belowerthanthepurchaseor
costpriceplus,whereappropriate,theamountofthecus­
tomsduties(includinglevies),taxesandchargesonthe
goods(exceptvalueaddedtax),evenifpaymentthereof
hasbeensuspended.
Inthecaseofimportationofgoodssoldbyretail,the
samereductionshallbeappliedtothebasisofassessment .
ItshallbelefttoMemberStatestodefine,inaccordance
withtheirnationalconcepts,theconceptof'saleofgoods
byretail'.
EachMemberStatemay,subjecttotheconsultations
mentionedinArticle16,lawdown,asameasuretopre­
ventfraudandinrespectofspecifiedgoodsandservices,
that,inderogationfromArticle8,thebasisofassessment
shallnotbelowerthanaminimumbasisdeterminedby
itsnationallaw.16.RegardingArticle10(1)(a)
Relieffromtaxasprovidedforinthisprovisionrefersto
thesupplyofgoodsdirectlyexported,thatistosaysup­
plymadebytheexporter.MemberStatesmay,however,
extendexemptiontosupplymadeattheprecedingstage.
17.RegardingArticle10(1)(b)
13.RegardingArticle8(a)MemberStatesmay,however,refrainfromgrantingthis
exemptionifrelieffromthevalueaddedtaxchargedon.
theprovisionoftheseservicesiseffectedinfavourofthe
beneficiaryoftheservicesbymeansofdeductions.
Moreover,MemberStatesmay,exceptinthecaseofthe
provisionofservicesrelatingtogoodsintransit,restrict
suchexemptiontotheprovisionofservicesrelatingto
goodsthesupplyofwhichinsidethecountryistaxable.
18.RegardingArticle10(2)
Thisprovisionrelatesinparticulartotheprovisionofin­
ternationaltransportservicesatimportationandtoport
services.Theexpression'consideration'meanseverythingreceived
inreturnforthesupplyofgoodsortheprovisionofserv­
ices,includingincidentalexpenses(packing,transport,in­
surance,etc.)thatistosaynotonlythecashamounts
charged,butalso,forexample,thevalueofthegoodsre­
ceivedinexchangeor,inthecaseofgoodsorservices
suppliedbyorderofapublicauthority,theamountofthe
compensation received.
Thisprovision .shallnot,however,preventeachMember
Statewhichconsidersitnecessaryfortheachievementof
greaterneutralityincompetitionfrombeingabletoex­
cludefromthebasisofassessmentinrespectofsupplythe
incidentalexpensesarisingasfromtheplaceofsupplyas
definedinArticle5(4)andtotaxsuchexpensesas
considerationfor.theprovisionofservices.19.RegardingArticle10(2)and(3)
Wheretheseparagraphsareappliedtothetransport
servicesreferredtoinAnnexB,item5,theymustbeso
appliedastoensureequalityoftreatmentasbetweenthe
differentmodesoftransport.

OfficialJournaloftheEuropeanCommunities 23
20.RegardingArticle11(1)(a) EachMemberStatemay,inspecialcases,provideforde­
rogationsfromthisruleandalsofromtheobligationlaid
downinArticle12(2).Suchderogations,however,must
bestrictlylimited.
Notwithstanding theothermeasurestobetakenby
MemberStatestoensurepaymentofthetaxandto
preventfraud,allpersons,whethertaxableornot,who
showthevalueaddedtaxonaninvoice,mustpaythe
amountthereof.
26.RegardingArticle12(3)InthecasesprovidedforinArticle5(5),secondsentence,
andArticle6(4),secondsentence,thedeductionsmaybe
madeassoonastheinvoiceisreceived,eventhoughthe
goodshavenotyetbeensuppliedortheservicesrendered.
21.RegardingArticle11(2),secondsubparagraph
MemberStatesmay,however,restricttherighttodeduc­
tiontotransactionsrelatingtogoodsthesupplyofwhich
insidethecountryistaxable.
22.RegardingArticle11(2),thirdsubparagraph
Theproratafigureshall,ingeneral,bedeterminedinre­
spectofallthetransactionscarriedoutbythetaxableper­
son(generalproratafigure).However,ataxableperson
may,exceptionally ,obtainadministrative permissionto
determinespecialproratafiguresforcertainsectorsofhis
activities.
23.RegardingArticle11(3),firstsubparagraph
SubjecttotheconsultationsmentionedinArticle16,each
MemberStatemay,onconjuncturalgrounds,partiallyor
whollyexcludecapitalgoodsfromthedeductionsystem,
orapplyinrespectofsuchgoods,insteadofthemethod
ofimmediatedeductions,thatofannualinstalments (de­
ductionsproratatemporis).
24.RegardingArticle11(3),thirdsubparagraph
MemberStatesmayspecifycertaintolerancesinorderto
limitthenumberofadjustmentsintheeventofvariations
intheannualproratafigureascomparedwiththeinitial
proratafigurewhichservedasabasisfordeductionsin
thecaseofcapitalgoods.EachMemberStatemay,forpracticalreasons,shortenthe
periodlaiddowninArticle12(3)orauthorisecertain
taxablepersonstolodgethedeclarationquarterly,half­
yearlyorannually.
Duringthefirstsixmonthsofeachyear,thetaxableper­
sonshall,whereappropriate,lodgeadeclarationconcern­
ingallthepreviousyears'stransactions,andincludingall
theparticularsnecessaryforanyadjustments .
EachMemberStateshall,asregardsimportationofgoods,
adoptmeasuresgoverningtheprocedureinrespectofthe
declarationandofthepaymentwhichmustensue.
27.RegardingArticle14
"WherethisArticleisappliedtothetransportservicesre­
ferredtoinAnnexB,item5,itmustbesoappliedasto
ensureequalityoftreatmentasbetweenthedifferent
modesoftransport.
28.RegardingArticle17,fourthindent
Stocksmaybevaluedinteraliabyreferencetothetrans­
actionscarriedoutduringprecedingyearsbythetaxable
persons.25.RegardingArticle12(2)
Theinvoicemustshowseparatelythepriceexclusiveof
taxandthecorresponding taxforeachdifferentrate,to­
getherwithanyexemption.
ANNEXB
ListoftheservicesreferredtoinArticle6(2):
1.assignmentsofpatents,trademarksandothersimilar
rights,andthegrantingoflicencesinrespectofsuch
rights;
2.work,otherthanthatreferredtoinArticle5(2)(d),
ontangiblemoveableproperty,carriedoutforatax­
ableperson;
3.provisionofservicestoprepareorco-ordinatethecar­
ryingoutofworksofconstruction,as,forexample,
servicesprovidedbyarchitectsandbyfirmsproviding
on-sitesupervisionofworks;6.hiringoftangiblemoveablepropertytoataxable
person;
7.provisionofstafftoataxableperson;
8.servicesprovidedbyconsultants,engineers,planning
officesandsimilarservices,inscientific,economicor
technicalfields;
9.thecarryingoutofanobligationtorefrainfromexer­
cising,inwholeorinpart,abusinessactivityora
rightincludedinthislist;
10.theservicesofforwardingagents,brokers,business
agentsandotherindependentintermediaries ,insofar
astheyrelatetosupplyorimportationofgoodsor
theprovisionofservicesincludedinthislist.4.commercialadvertisingservices;
5.transportandstorageofgoods,andancillaryservices;