12.10.85 Official Journal of the European Communities No C 261/3 
II 
(Preparatory Acts) 
COURT OF AUDITORS 
OPINION No 2/85 
of the Court of Auditors of the European Communities on a proposal for a Council Regulation 
(EEC, Euratom, ECSC) extending the terms of validity of Council Regulation (EEC, Euratom, 
ECSC) No 2892/77 implementing in respect of own resources accruing from value added tax 
the Decision of 21 April 1970 on the replacement of financial contributions from Member 
States by the Communities' own resources 
(85/C 261/04) 
THE COURT OF AUDITORS OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the European 
Coal and Steel Community, and in particular Article 78 
thereof, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 209 
thereof, 
Having regard to the Treaty establishing the European 
Atomic Energy Community, and in particular Article 183 
thereof, 
Having regard to Council Decision 70/243/ECSC, 
EEC, Euratom of 21 April 1970 on the replacement of 
financial contributions from Member States by the 
Communities' own resources ('), hereinafter referred to 
as 'the Decision of 21 April 1970', and in particular 
Article 6 (2) thereof, 
Having regard to Council Decision 85/257/EEC, 
Euratom of 7 May 1985 on the Communities' system of 
own resources (2), hereinafter referred to as 'the 
Decision of 7 May 1985', and in particular Article 3 (1) 
thereof, 
Having regard to the proposal from the Commission (3), 
Whereas the Council decided, on 10 May 1985, to 
consult the Court of Auditors on this proposal; 
Whereas Article 14 of Council Regulation (EEC, 
Euratom, ECSC) No 2892/77 (4), hereinafter referred to 
as 'the Regulation', as last amended by Regulation 
(EEC, Euratom, ECSC) No 3625/83 (s), states that the 
C) OJ No L 94, 28. 4. 1970, p. 19. 
(2) OJ No L 128, 14. 5. 1985, p. 15. 
O OJ No C 125, 22. 5. 1985, p. 16. 
(4) OJ No L 336, 27. 12. 1977, p. 8. 
(') OJ No L 360, 23. 12. 1983, p. 1. Regulation shall apply from 1 January 1978, for a 
transitional period expiring on 31 December 1985; 
Whereas 'the Regulation' required the Commission to 
present proposals before 31 December 1984 in respect of 
a uniform method for determining the assessment basis; 
Whereas the Commission now proposes to defer the 
introduction of the definitive uniform system by the 
extension of the transitional period until 31 December 
1988, 
HAS ADOPTED THE FOLLOWING OPINION: 
PART 1 
Background 
1.1. The Decision of 21 April 1970 referred to the 
objective of applying, from 1 January 1975, a VAT own 
resources rate to an assessment basis to be determined in 
a uniform manner for Member States according to 
Community rules. 
1.2. It was not, however, until 1979 that the VAT 
own resources system became effective, and even then 
only on a transitional basis. 'The Regulation' permitted 
Member States to opt either for the returns method 
(method A) or the revenue method (method B), for a 
period ending on 31 December 1982. It was foreseen 
that a definitive uniform system would then be brought 
into effect. 
1.3. In 1982, the Commission claimed that because of 
the delay in implementing the VAT own resources 
arrangements, it did not have sufficient experience to 
make a proposal in respect of a uniform method for 
determining the assessment basis. The Council extended 
the transitional period for a further three years to 31 
December 1985. The Commission was required to 
present proposals before 31 December 1984. 
No C 261/4 Official Journal of the European Communities 12.10. 85 
1.4. The Court, in its Opinion No 3/82 ('), regretted 
the continuation of arrangements of a transitional 
nature. It expressed the hope that the Commission would 
use this longer period to ensure that a definitive system 
should be introduced from 1 January 1986, without 
further delay. 
PART 2 
Remarks on the Proposal 
2.1. In the Explanatory Memorandum accompanying 
the current proposal, the Commission states that it 
considers it is still too early to propose a definitive 
method for establishing the VAT own resources base. As 
regards the three main reasons given by the Commission 
to justify its proposal: 
(i) the Commission's claim that it has only limited 
experience of the amended Regulation overlooks the 
point that 'the Regulation' in its original version has 
been applied from 1 January 1979, and subsequent 
amendments to it are of little significance in the 
present context. Most of the problems arising from 
the present transitional arrangements have been 
described in the Commission's comprehensive report 
on the implementation of 'the Regulation' (2). The 
Court considers that the information already 
available to the Commission is a sufficient basis on 
which to produce a definitive system. 
(ii) The Commission also refers to current proposals for 
amending certain regulations and other legal in­
struments. In the Court's view, the proposals in 
question are of little relevance either to the 
operation of the two transitional methods of calcu­
lating VAT own resources currently in force or to 
the determination of a single definitive method. On 
the contrary, the Court suggests that the determi­
nation of one definitive method could simplify the 
(') OJ No C 151,9. 6. 1983, p. 6. 
O Doc. COM(85) 170 final, 19. 4. 1985. VAT own resources system. This objective is all the more 
desirable with the forthcoming participation of three 
more Member States in the Community VAT own 
resources system. 
(iii) While it is true that eight Member States now use 
the revenue method (method B) instead of the 
returns method (method A), which both the 
Commission and the Parliament wished to have 
used, this does not invalidate the objective of having 
a single definitive uniform method. 
2.2. Moreover, there are continuing problems within 
the present transitional arrangements. There is a 
significant financial difference between method A and 
method B, and between the ways in which each Member 
State carries out its calculations under method B. 
PART 3 
Conclusions 
3.1. The Court is of the opinion that the proposal 
made is not in accordance with the responsibility placed 
on the Commission by Article 14(3) of Regulation No 
2892/77 as amended, or with the objective set out in the 
Decisions of 21 April 1970 and 7 May 1985. Whereas 
the Commission was requested to present proposals in 
respect of a uniform method for determining the 
assessment basis, it now proposes to maintain both 
transitional methods for a further three years. The Court 
repeats its regret at the continuation of arrangements of 
a transitional nature. 
This opinion was adopted by the Court of Auditors at its 
meeting of the 26 June 1985. 
Done at Luxembourg, 3 July 1985. 
For the Court of Auditors 
Marcel MART 
President