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COM (83) 0 79 
 
 
 
Vol. 1983/00 26 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION  OF THE  EUROPEAN  COMMUNITIES 
COM(83)  79 final 
Brussels,  23 February  1983 
Commission  Communication to the  Council 
concerning the application of Article  27 of the Sixth  Council  Directive 
of 17 May  1977  on value added tax to a  request  for derogation 
submitted to the German and Luxembourg Governments 
COM(83)  79 final 

Commission  Communication  to the  Council  concerning the application of 
Article  27 of the Sixth  Council  Directive of  17 May  1977  on value  added 
tax (l) to a  request  for derogation submitted by the German and 
Luxembourg Governments 
1. On 6 and 17 December 1982, the German and Luxembourg Governments 
informed the Commission,  pursuant  to the  above  provisions, of their 
intention to introduce a  measure  derogating from the Sixth Directive. 
The purpose  of the derogation is, as provided for in the  draft 
agreement  between  Germany and Luxembourg, to simplify the collection of VAT 
on the  transactions  relating to the construction and  maintenance  of a 
frontier bridge. 
2. Under the derogation, VAT  will  be collected on one side only for 
all the work relating to the construction and  maintenance  of the frontier 
bridge. 
Since the Federal Republic of Germany  will  assume  responsibility 
for building and maintaining the bridge, VAT  will  be levied on  these 
operations  by the German authorities alone. 
3. The Commission informed the  other  Member  States,  by  letter dated 
17 January  1983, of the  requests  submitted by the German and Luxembourg 
Governments. 
4. In  accordance  with  Article  27(4) of the Sixth Directive, the 
Council's  decision  will  be deemed  to have  been  adopted  if, within two  months 
of the  other  Member  States  being informed, as described at 3 above,  neither 
the Commission nor any Member  State  has  requested  that  the  matter  be raised 
by the  Council. 
5. Provided  that  the derogation proposed by the German and Luxembourg 
Governments is restricted to the  measures  mentioned in  paragraphs  1 and 2 
of this Communication, the Commission  does  not intend to ask for the  matter 
to be raised by the  Council. 
6. The Commission  requests  the  Council  to publish the  text  of 
paragraphs  1 to 3 of this Communication in the  Official  Journal  together 
with  its decision. 
ANNEX;  2 

1 
Communioati.on 
from  the Government of the Federal Republic of Germany 
Subject:  Sixth  Council  Directive on the harmonization of turnover taxes; 
introduction  of simplification  measures  (Article  27(l) to  (4))· 
I. 
As part  of the Koblenz-Trier-Luxembourg road  link,  the Federal Republic 
of Germany and the Grand Duchy of Luxembourg intend to  build  a frontier 
bridge over the Sauer. 
Under  the p:  ovision  on territorial application (Sixth Directive,  Article  3) 
each of the two  States  would have to charge turnover tax (value added tax) 
for the building and maintenance work carried out on its own territory. 
This  would involve considerable tax complications for the companies 
concerned. Each supply or other transaction relating to the single 
operation of building and maintaining the bridge would have to be 
examined separately for allocation to German or Luxembourg' territory. 
Single  transactions concerning both the territories would have to be 
divided  between them. Because exportation was involved, equipment which, 
for example, was supplied from the Federal Republic of Germany and used 
for building or maintenance work on Luxembourg territory would have to be 
exempted from German turnover tax and  made  liable to Luxembourg value 
added tax on importation into Luxembourg. 
In order to facilitate the practical execution of the project, the  treaty 
is to include the  following  tax provision, whereby all turnover tax on the 

building  and maintenance work is to be  levied  by the Federal Republic of 
Germany,  which  will  also be responsible for carrying out the  building  work 
and maintaining the bridge: 
"For the purpose of indirect taxation  including  import duties and taxes and 
for the purposes of import and export legislations, the site of the works 
and the structure  itself  shall  be deemed to be German territory  with 
respect to supplies and imports of goods and other transactions intended 
for the  building  of the bridge or for its maintenance." 
II. 
The treaty is also to include the  following  rule,  which  provides  that 
German  turnover tax on imports  shall  not he charged on inports  from 
Luxembourg: 
"On importation into the Federal Republic of Germany, turnover tax  shall 
not he charged on goods  which  have been in free circulation in the Grand 
Duchy  of Luxembourg, insofar as such goods are used for the  building  or 
maintenance of the bridge.  This  shall  apply  from  the  start  of the 
building  work. The lodging of securities  shall  not be required. Sentence 1 
shall  not apply to the importation of goods for public works departments." 
The fact  that  this tax is not charged  will  also  simplify  matters  for 
companies and the authorities.  This  is merely a technical  simplification 
relating  to tax payable on a single project in one particular place 
(suspension of tax in the business sector), and not a substantive 
concession.  If turnover tax were charged on importation, it  could  be 
fully  deducted by the  building  contractors as an input tax. The measure 
explicibly  excludes imports for public works departments  (final  consumption 
stage)  . 

1 
III. 
Authorization  is requested for the planned rules,  which  are a derogation 
from  Article  3 and  Article  2(2) of the  Sixth  Directive. 
Article  27(l) permits the introduction of special  measures  for derogation 
from  the Directive in order to  simplify  the procedure for charging the tax. 
This  provision also applies.to  agreements  between Member States. The 
suspension of tax is also a possible  simplification  measure  (see the 
statements  written into the minutes on  Article  27)* 
As has been explained, the purpose of the intended rules is to  simplify 
taxation. Since the whole of the  building  and maintenance work  (together 
with  imports for public works  departments)  is subject to turnover tax in 
the Federal Republic of Germany, taxation at the  final  consumption  stage 
is not diminished. The Community*s own resources deriving from value 
added tax  will  therefore be unaffected. 

- 1 -
Communication 
Prom  the Government of the Grand Duchy of Luxembourg 
Subject:  Sixth  Council  Directive 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. 
Application  for authorization to introduce  simplified  measures 
under  Articles  27(l) to (4). 
As the Federal Republic of Germany and the Grand Duchy of Luxembourg intend 
to build  a frontier bridge over the Sure as a joint project, the two  States 
have drawn up a draft convention which includes a provision on value added 
tax. 
Under  the provision on territorial application  (Article  3 of the  Sixth 
Directive),  each of the two  States  would have to collect value added tax 
on the construction and maintenance work carried out on its own territory. 
This  would involve considerable technical difficulties for the companies 
concerned. 
Every  supply of goods or services relating to the building or maintenance 
of the bridge would have to be examined separately for allocation to the 
German  or Luxembourg  VAT  system. Supplies concerning both territories would 
have to be broken down between them. For example, equipment purchased in 
the Federal Republic of Germany for construction and maintenance work on 
Luxembourg  territory should,  because  it is being exported, be exempted from 
German  VAT  and  made  subject to Luxembourg  VAT  upon importation into the 
Grand  Duchy. 
In order to  simplify  the administrative formalities connected with the 
execution of the project, the draft convention includes a provision whereby \ 
VAT  will  be collected on one side only for all the work. 

9 
The Federal  Kepublio  of Germany  will  assume  responsibility for  building 
and maintaining the bridge and VAT  will  be  levied  on these  operations by 
the German authorities alone. 
The provision  reads  as follows: 
"For the purpose of indirect taxation including import duties and  taxes  and 
for the purposes of import and export legislation, the site of the works and 
the structure work shall be deemed to be on German territory  with  respect to 
supplies and imports of goods and services intended for the  building  of the 
bridge or for its maintenance.** 
The Government to the Grand Duchy of Luxembourg hereby  requests  authorization 
under  Article  27(l) of the  Sixth  Directive to introduce the proposed  measure 
by way of derogation from  Article  3 of the Directive.  Article  27 provides 
that  the  Council  may authorize any Member  State  to introduce special  measures 
for derogation from the provisions of the Directive in order to  simplify 
the procedure for charging the tax. 
Reference is also made to the  statement  in the Minutes concerning  Article  27 
of the  Sixth  Directive  that  the  measures  referred to in  that  Article  shall 
also apply to  agreements  between Member States. 
As explained above, the proposed provision is a  measure  to simplify  the 
charging  of the tax. Since all the  building  and maintenance operations  will 
be subject to value added tax in the Federal Republic of Germany, taxation 
at the  final  consumption  stage  is not diminished. ^ 
The proposed provision  will  have no effect on the Community's own resources 
accruing  from value added tax.