No C 214/8 Official Journal of the European Communities 14.8.84 
Proposal for a twentieth Council Directive on the harmonization of the laws of the 
Member States relating to turnover taxes — common system of value added tax: dero­
gations in connection with the special aids granted to certain farmers to compensate for 
the dismantlement of monetary compensatory amounts applying to certain agricultural 
products 
COM(84) 391 final 
(Submitted by the Commission to the Council on 17 July 1984) 
(84/C 214/08) 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Economic 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 Par­
liament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas Council Regulation (EEC) No 855/84 of 31 
March 1984 on the calculation and dismantlement of 
the monetary compensatory amounts applying to 
certain agricultural products (') provided for an adap­
tation of the representative rates which, in the case of 
the Federal Republic of Germany, must, when it takes 
place on 1 January 1985, entail lower prices when 
expressed in national currency and consequently 
lower farm incomes; whereas by way of 
compensation, the possibility of granting special 
national aids to which the Community would 
contribute on a temporary and degressive basis was 
provided for; 
Whereas by way of compenstion, Article 3 of Council 
Regulation (EEC) No 855/84 authorized the Federal 
Republic of Germany to grant a special aid, using 
value added tax as an instrument, of an amount not 
exceeding 3 per cent of the price excluding value 
added tax paid by the purchaser of the agricultural 
product; 
Whereas Council Decision No .. . authorized .the 
Federal Republic of Germany to exceed this limit and 
to apply a percentage of 5 % for the period between 
1 July 1984 and 31 December 1988, and whereas as a 
result, it is necessary that this Directive shall apply 
from 1 July 1984; 
Whereas to avoid any distortion of the uniform basis 
of assessment of value added tax in the Community as harmonized by the Sixth Council Directive 
77/388/EEC 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 (2) and in particular to maintain 
the basis for making accurate calculations of the VAT 
own resources due from Member States, it was 
provided in Article 3 (2) of Regulation (EEC) No 
855/84 that the payments of such special aids must be 
mentioned in the invoicing or the VAT declaration 
using the VAT as an instrument; whereas such aid 
may not exceed the percentage fixed by the aforesaid 
Council Regulation of the price exclusive of VAT 
paid by the purchaser for the agricultural product; 
Whereas particular measures must be introduced for 
authorizing the Federal Republic of Germany to 
derogate from certain provisions of Directive 
77/388/EEC to the extent necessary for carrying into 
effect the special aid authorized by Regulation (EEC) 
No 855/84 and by Decision No ...; 
Whereas the granting of such special aid would, in 
the absence of special authorizing provisions, 
constitute a departure form the rules set out in 
Articles 17, 22 and 25 of Directive 77/388/EEC; 
HAS ADOPTED THIS DIRECTIVE: 
Article 1 
By way of derogation from the provisions of 
Directive 77/388/EEC, the Federal Republic of 
Germany is authorized to use value added tax in 
order to grant the special aid permitted in Regulation 
(EEC) No 855/84 and Decision No ... 
Article 2 
1. Value added tax maybe used as an instrument to 
grant the aid only within the limit of 3 % authorized 
in Article 3 of Regualtion (EEC) No 855/84. 
O OJNoL90, 1.4. 1984, p. 1. O OJ No L 145, 13. 6. 1977, p. 1. 
14.8.84 Official Journal of the European Communities No C 214/9 
2. However, in accordance with Decision No . . ., 
this percentage may be increased up to 5 % until 31 
December 1988. 
3. The special aid using value added tax as an 
instrument may be granted by either of the two 
methods mentioned in Article 3 below. 
Article 3 
The Federal Republic of Germany may provide that: 
— a flat-rate farmer, as defined in the third indent of 
- Article 25 (2) of Directive 77/388/EEC, shall be 
entitled to add to the amount of his invoice on the 
sale of his agricultural products to a taxable 
person a sum not exceeding the percentage, stated 
in Article 2, of the price exclusive of value added 
tax mentioned as such in the invoice or other 
document serving as an invoice; 
— an agricultural producer who is a taxable person 
subject to the normal system of value added tax 
shall be entitled to deduct from the tax which he 
is liable to pay when submitting his return a sum 
not exceeding the percentage, stated in Article 2, 
of the selling price exclusive of value added tax of 
his agricultural products for the period concerned. 
Article 4 
1. By way of derogation from Article 17 (2) of 
Directive 77/388/EEC a taxable person who 
purchases agricultural products from a flate-rate 
farmer may deduct, from the tax which he is liable to 
pay, the amount of the special aid charged to him by 
the relevant flat-rate farmer in conformity with this 
Directive and with the provisions of Council Regu­
lation (EEC) No 855/84 and Decision No . .. 
2. In addition to the details required by Article 
22 (3) (b) of Directive 77/388/EEC, the invoice of an 
agricultural producer subject to the normal system of 
value added tax, and the invoice in respect of the 
supply effected by a flat-rate farmer, must mention 
the percentage and amount of the special aid. 3. By way of derogation from Article 22 (4) of 
Directive 77/388/EEC a taxable person who 
purchases agricultural products from a flat-rate 
farmer shall mention, in his return, the amount of the 
special aid. 
4. By way of derogation from Article 22 (5) of 
Directive 77/388/EEC an agricultural producer who 
is subject to the normal system of value added tax 
may be authorized to deduct, from the net amount of 
the value added tax due to be paid by him when 
submitting the return, the amount of the special aid. 
5. By way of derogation from Article 25 (3) of 
Directive 77/388/EEC the Federal Republic of 
Germany may, in addition to the proper flat-rate 
compensation percentages, permitted under that 
Article, apply a further percentage corresponding to 
the amount of the special aid. 
Article 5 
The Federal Republic of Germany shall take the 
measures necessary to ensure that the calculation and 
levying of VAT own resources is done by reference to 
the details contained in the VAT returns provided for 
in Article 4 (3) and (4) and shall not be affected by 
the derogations from Directive 77/388/EEC 
permitted by the present Directive. 
Article 6 
The Federal Republic of Germany shall communicate 
to the Commission details of the measures which it 
adopts for the implementation of the provisions auth­
orized by this Directive. 
Article 7 
This Directive is applicable with effect from 1 July 
1984. 
Article 8 
This Directive is addressed to the Federal Republic of 
Germany.