9.2.93 OfficialJournaloftheEuropeanCommunities NoC35/9
II
(PreparatoryActs)
COMMISSION
ProposalforaCouncilRegulationamendingRegulation(EEC,Euratom)No1553/89of29
May1989onthedefinitiveuniformarrangementsforthecollectionofownresourcesaccruing
fromvalueaddedtax
(93/C35/12)
COM(92)580final
(SubmittedbytheCommissionon21December1992)
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,Whereascommonmethodsshouldbelaiddownforthe
calculationofcertainelementsofthebaseforown
resourcesaccruingfromvalueaddedtaxinorderto
ensureuniformapplicationofRegulation (EEC,
Euratom)No1553/89,HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle209
thereof,
HASADOPTEDTHISREGULATION : HavingregardtotheTreatyestablishingtheEuropean
AtomicEnergyCommunity ,andinparticularArticle183
thereof,
HavingregardtoCouncilDecision88/376/EEC,
Euratomof24June1988onthesystemofthe
Communities'ownresources('),andinparticularArticle
8(2)thereof,Article1
Regulation(EEC,Euratom)No1553/89isamendedas
follows:
inArticle2
—paragraph 1isreplacedbythefollowing :
'1.TheVATresourcesbaseshallbedetermined
fromthetaxabletransactionsreferredtoinArticles2
and28aofCouncilDirective77/388/EEC,aslast
amendedbyDirective91/680/EEC,withthe
exceptionoftransactionsexemptedunderArticles13
to16,28cand28kofthatDirectiveortowhich
exemptionfromVATappliesunderDirective
69/169/EECOaslastamendedbyArticle2(3)of
Directive91/680/EEC(2).HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropean
Parliament ,
HavingregardtotheopinionoftheCourtofAuditors,
Whereasfollowingtheadoptionofdirectivesonthe
harmonization ofnationallegislationrelatingtoVAT
whichsupplementoramendtheSixthCouncilDirective
77/388/EECof17May1977ontheharmonization of
thelawsoftheMemberStatesrelatingtoturnovertaxes
—Commonsystemofvalueaddedtax:uniformbasisof
assessment(2)—andinparticularDirective
91/680/EEC(3),whichincludesprovisionforthe
application,witheffectfrom1January1993,oftran­
sitionalarrangementsforthetaxationoftradebetween
MemberStates,itisnecessarytoadjustCouncilRegu­
lation(EEC,Euratom)No1553/89of29May1989on
thedefinitiveuniformarrangementsforthecollectionof
ownresourcesaccruingfromvalueaddedtax(4);OOJNoL133,4.6.1969,p.6.
(2)OJNoL376,31.12.1991,p.1.'
—inthethirdindentofparagraph2,thewords'or
whichtheyexempt'areinsertedafterthewords
'continuetoexempt'andthewords'and(3a)'are
insertedafterthewords'Article28(3)(b)';
inArticle4
—inparagraph 1thephrase'orforwhichthereisno
longerexemptionorrepaymentofVATpursuantto
Directive69/169/EECaslastamendedbyArticle2(')OJNoL185,15.7.1988,p.24.
OOJNoL145,13.6.1977,p.1.
(3)OJNoL376,31.12.1991,p.1.
(4)OJNoL155,7.6.1989,p.9.

NoC35/10 OfficialJournaloftheEuropeanCommunities 9.2.93
'InthecasesprovidedforinArticles2(3),4(7)and
6(1),(2)and(4),theVATresourcesbaseshallbe
calculatedbyapplyingthecommoncalculation
methodsetoutintheAnnex.'(3)ofDirective91/680/EEC'isinsertedafterthe
words'whichdonotentitlethecustomerto
deductionofVAT';
—intheintroductoryphraseofparagraph2thewords
'ornon-repayable'areinsertedaftertheword
'non-deductible ';
—thefollowingsubparagraph isaddedattheendof
paragraph2:
'Thesecategoriesshallalsoincludesuppliessubjectto
VATintheMemberStateconcernedbutconsumed
orusedforgrossfixedcapitalformationinanother
MemberState.';
inArticle6
—inthesecondindentofparagraph2thewords'or
whichtheyexempt'areinsertedafterthewords
'continuetoexempt'andthewords'and(3a)'are
insertedafterthewords'Article28(3)(b)\
—paragraph5isreplacedbythefollowing :Article2
ThisRegulationshallenterintoforceontheday
followingitspublicationintheOfficialJournalofthe
EuropeanCommunities .
Itshallapplyfrom1January1993.
Itshallnotapply,however,totheproductionor
correctionofstatementsoftheVATresourcesbasefor
yearsbefore1993whichhavebeenproducedin
accordancewithRegulation (EEC,Euratom)No
1553/89,whichremainsinforceinrespectofthe
statementsconcerned .
ThisRegulationshallbebindinginitsentiretyand
directlyapplicableinallMemberStates.
ANNEX
COMMONCALCULATION METHOD (l)
1.Article2(3)
(a)FortaxedtransactionsbytaxablepersonswhoseannualturnoverdoesnotexceedECU10000,the
VATresourcesbaseisdetermined :
—byaddingtothisbasethenetpricesofgoodsandservices—purchasedbythesetaxablepersons
—bearingVATwhichisdeductibleunderArticle17ofDirective77/388/EEC,
—bysubtractingfromthisbasethevalueofgoodsandservicessuppliedbythesetaxablepersonsto
non-taxablepersons.
(b)ForexempttransactionsbybusinesseswhoseannualturnoverdoesnotexceedECU10000,the
VATownresourcesbaseisdetermined :
—bysubtractingfromthisbasethenetpricesofgoodsandservices—purchasedbythesebusi­
nesses—bearingVATwhichisdeductibleunderArticle17ofDirective77/388/EEC.
(')InthisAnnexsuppliestotaxablepersonsorpurchasesbytaxablepersonsaresuppliesorpurchasesonwhichthe
taxablepurchasers—giventhattheoperationsconcernedareorwouldbetaxed—areorwouldbeentitledtodeduct
theVAT.
Suppliestonon-taxablepersonsorpurchasesbynon-taxablepersonsaresuppliesorpurchasesonwhichthe
non-taxablepurchasers—giventhatthetransactionsconcernedareorwouldbetaxed—arenotorwouldnotbe
entitledtotheVAT.

9.2.93 OfficialJournaloftheEuropeanCommunities NoC35/11
2.Article4(7)
ThefirstsubparagraphofArticle4(7)providesforthecalculationoftwopartialweightedaveragerates
andhencethecalculationoftwopartialintermediateVATbases.
Inordertocalculatetheweightingstobeappliedtotheoldrates(and/oroldlegislation)andthenew
rates(and/orthenewlegislation),thepurchasesandsuppliesreferredtoinArticle4(2)arebroken
downonthebasisoftheperiodsofthecalendaryearduringwhichtheVATrevenuewasyieldedatthe
oldrates(and/orundertheoldlegislation)andatthenewrates(and/orunderthenewlegislation).
ThesecondsubparagraphofArticle4(7)providesforasingleweightedaverageratetobecalculated
andtobeappliedtothetotalnetreceiptsfortheyear.
Atanintermediatestagetwoweightedaverageratesarecalculated,onanannualbasis,using,inthe
firstcase,theoldrates(and/ortheoldlegislation)and,inthesecondcase,thenewrates(and/orthe
newlegislation).
Thesingleweightedaveragerateiscalculatedastheweightedsumofeachoftheaveragerates
calculatedasabove,takingintoaccountthelengthoftheperiodduringwhichtheVATwasyieldedat
theoldrates(and/orundertheoldlegislation)andatthenewrate(and/orunderthenewlegislation).
3.Article6(1)and(2)
(a)Methodtobeappliedinrespectof:
—operationsbytaxablepersonswhoseannualturnoverexceedsECU10000butwhoare
exempted,
—thetransactionslistedinAnnexFtoDirective77/388/EECwhichMemberStatescontinueto
exempt,orwhichtheyexempt.
TheVATresourcesbaseisdetermined :
—bysubtractingfromthisbasethenetpricesofgoodsandservicespurchasedbythesetaxable
personsbearingVATwhichisdeductibleunderArticle17ofDirective77/388/EEC,
—byaddingtothisbasethevalueofgoodsandservicessuppliedbythesetaxablepersonsto
non-taxablepersons.
Inaddition :
theVATonthenetpricesofgoodsandservicesbearingVATwhichisdeductibleunderArticle17
ofDirective77/388/EEC,correspondingtosuppliestonon-taxablepersons,issubtractedfromthe
VATresourcesbase,andtheVATonthenetpricesofgoodsandservicesbearingVATwhichis
deductibleunderArticle17ofDirective77/388/EEC,corresponding tosuppliestotaxablepersons
whothemselveswillsupplydirect,orviaothersuppliestotaxablepersons,tonon-taxablepersons,is
subtractedfromtheVATresourcesbase(').
(b)FortheoperationslistedinAnnexEtoDirective77/388/EECwhichMemberStatescontinueto
tax,theVATresourcesbaseisdetermined :
—byaddingtothisbasethenetpricesofgoodsandservicespurchasedbythesetaxablepersons
bearingVATwhichisdeductibleunderArticle17ofDirective77/388/EEC,
—bysubtractingfromthisbasethevalueofgoodsandservicessuppliedbythesetaxablepersonsto
non-taxablepersons.
Inaddition:
theVATonthenetpricesofgoodsandservicesbearingVATwhichisdeductibleunderArticle17
ofDirective77/388/EEC,correspondingtosuppliestotaxablepersonswhothemselveswillsupply
direct,orviaothersuppliestotaxablepersons,tonon-taxablepersons,isaddedtotheVAT
resourcesbase(').
(')TheseprovisionsapplyonlyifthedatarequiredfordeterminingthedeductibleVATonthenetpricesofthegoods
andservicesinquestionarederivedfromprecisestatisticaldata.

NoC35/12 OfficialJournaloftheEuropeanCommunities 9.2.93
(c)FortheoperationsreferredtoinAnnexG(1)(a)toDirective77/388/EECwhicharetaxedby
virtueofanoptiongiventotaxablepersonsbytheMemberStates,theVATresourcesbaseis
determinedinaccordancewiththecalculationrulessetoutat(b)above.
4.Article6(4)
(a)WhereaMemberStaterestrictstheexerciseoftherighttodeductinrespectofthepurchaseof
passengercarsusedforbusinesspurposes,andofexpenditurerelatingtotheleasing,hiring,main­
tenanceandrepairofsuchcars,theVATresourcesbaseisdetermined :
—bysubtractingfromthisbasethenetpricesofsuchpurchasesandsuchexpenditurebytaxable
personswhohavenorightoronlyalimitedrighttodeducttheVATconcerned,providedthese
carsareusedforbusinesspurposes,
—byaddingtothisbasethenetpricesofusedcarssuppliedbythesetaxablepersonsto
non-taxablepersons.
(b)WhereaMemberStaterestrictstheexerciseoftherighttodeductinrespectofpurchasesof
petroleumproductsusedforbusinesspurposes,theVATresourcesbaseisdeterminedbysubtracting
fromthisbasethenetpricesofsuchproductspurchasedbytaxablepersonshavingnorightoronly
alimitedrighttodeducttheVATconcerned,providedtheseproductsareusedforbusiness
purposes.