Proposal for a Council Directive amending Directive 77/388/EEC on the common system of value-added tax (the Value-added Tax Committee) (97/C 278/05) COM(97) 325 final - 97/0186(CNS)

(Submitted by the Commission on 26 June 1997)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 99 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Whereas experience with the operation of the transitional arrangements for charging VAT in intra-Community trade has demonstrated a need for a more uniform application of Community legislation, in particular to avoid double taxation or non-taxation;

Whereas the Commission in its programme for introducing the new common system of VAT has included changing the status of the VAT Committee from an advisory into a regulatory Committee;

Whereas the Council in its Decision of 13 July 1987 (1) has laid down the procedures for the exercise of powers of implementation conferred on the Commission,

HAS ADOPTED THIS DIRECTIVE:

Article 1

Council Directive 77/388/EEC (2) is hereby amended as follows:

1. Article 29 is replaced by the following:

'Article 29

1. The measures required for the application of the provisions of this Directive, with the exception of provisions relating to VAT rates, shall be adopted by the Commission in accordance with the procedures laid down in paragraphs 2 to 4. In addition, the Commission shall, under the same procedure, adopt the provisions necessary for the adjustment of Article 15 (10).

2. The Commission shall be assisted by a committee on value-added tax, hereinafter referred to as "the Committee". The Committee shall be composed of the representatives of the Member States and chaired by the Commission representative.

3. The Commission representative shall submit to the Committee a draft of the measures to be taken. The Committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 148 (2) of the Treaty in the case of decisions which the Council is required to adopt on a proposal from the Commission. The votes of the representatives of the Member States within the Committee shall be weighed in the manner set out in that Article. The chairman shall not vote.

4. (a) The Commission shall adopt the measures envisaged if they are in accordance with the opinion of the Committee.

(b) If the measures envisaged are not in accordance with the opinion of the Committee, or if no opinion is delivered, the Commission shall, without delay, submit to the Council a proposal relating to the measures to be taken. The Council shall act by qualified majority.

(c) If, on the expiry of a period of three months from the date of referral to the Council, the Council has not acted, the proposed measures shall be adopted by the Commission.

5. In addition to the measures referred to in paragraph 1, the Committee shall examine the points subject to the consultation provided for pursuant to this Directive and the matters referred to it by its chairman, either on his own initiative or at the request of the representative of a Member State, concerning the application of Community provisions on value-added tax,`.

2. In Article 15 (10), the second paragraph is replaced by the following:

'The scope of this exemption can be adjusted, subject to conditions established in accordance with the procedure provided for in Article 29.

This exemption shall be subject to limitations laid down by the host Member State until common Community tax rules are adopted. The information necessary to carry out this exemption shall be exchanged by means of a uniform document. The form and contents of this document shall be established according to the procedure provided for in Article 29.`.

Article 2

1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 1 January 1998. They shall forthwith inform the Commission thereof.

When Member States adopt these provisions, they shall contain a reference to this Directive or shall be accompanied by such reference on the occasion of their official publication. The methods of making such a reference shall be laid down by the Member States.

2. Member States shall communicate to the Commission the text of the provisions of domestic law which they adopt in the field covered by this Directive.

Article 3

This Directive shall enter into force on the day of its publication in the Official Journal of the European Communities.

Article 4

This Directive is addressed to the Member States.

(1) Council Decision 87/373/EEC of 13 July 19987 laying down the procedures for the exercise of implementing powers conferred on the Commission (OJ L 197, 18. 7. 1987, p. 33).

(2) OJ L 145, 13. 6. 1977, p. 1.