Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EEC) No 218/92 on administrative co-operation in the field of indirect taxation (VAT) as regards additional measures regarding supplies of travel services

(presented by the Commission)

EXPLANATORY MEMORANDUM

The proposed amendment of the Regulation (EEC) No 218/92 on administrative co-operation in the field of indirect taxation (VAT) as regards additional measures regarding supplies of travels services, which is based on Article 95 of the Treaty, should be adopted through the co-decision procedure described under Article 251 of the Treaty.

Following a procedural mistake neither the title nor the signature provision of the proposed amendment [1] were modified accordingly.

[1] COM(2003) 78final

In order to correct this mistake, the Commission proposes to make the following amendments to the Commission's original proposal for a Council Regulation amending Regulation (EEC) No 218/92 on administrative co-operation in the field of indirect taxation (VAT) as regards additional measures regarding supplies of travel services:

* The title is modified to " a proposal for a Regulation of the European Parliament and of the Council";

* The reference to "Having regard to the opinion of the European Parliament" is deleted;

* An additional phrase "Acting in accordance with the procedure laid down in Article 251 of the Treaty" is inserted;

* "Has adopted this Regulation" is modified to "Have adopted this Regulation";

* The signature for the President of the European Parliament is added;

* The numbering of the footnotes is adjusted.

* "Official Journal of the European Communities" is modified to "Official Journal of the European Union".

2003/0057 (COD)

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EEC) No 218/92 on administrative co-operation in the field of indirect taxation (VAT) as regards additional measures regarding supplies of travel services

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 95 thereof,

Having regard to the proposal from the Commission [2];

[2] OJ C [...], [...], p. [...]

Having regard to the opinion of the European Economic and Social Committee [3];

[3] OJ C [...], [...], p. [...]

Acting in accordance with the procedure laid down in Article 251 of the Treaty [4];

[4] OJ C [...], [...], p. [...]

Whereas:

(1) Council Directive 2003/xxx/EC of [...................... 2003] amending Directive 77/388/EEC as regards the special scheme for travel agents [5] provides a framework for taxing supplies of travel services in the Community effected by taxable persons who are neither established nor required to be identified for tax purposes within the Community.

[5] OJ L ...

(2) Since the Member State of consumption has primary responsibility for ensuring that non-established suppliers comply with their obligations, the information necessary to operate the special scheme for travel services supplied by operators not established in the Community, as provided for in Article 26(3) of Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes - Common system of value added tax: uniform basis of assessment [6] should be transmitted to those Member States.

[6] OJ L 145 of 13/6/1977, p. 1 as last modified by Council Directive 2002/92/EC of 3 December 2002 OJ L 331 of 7/12/2002, p 27

(3) It is necessary to provide that the value-added tax due in respect of such supplies is to be transferred to the accounts designated by the Member States of consumption,

(4) Regulation (EEC) No 218/92 should therefore be amended accordingly,

HAVE ADOPTED THIS REGULATION:

Article 1

Regulation (EEC) No 218/92 is amended as follows:

(1) The following Title III B is inserted: "Title III B Provisions concerning the special scheme provided for in Article 26(3) of Directive 77/388/EEC Article 9g The following provisions shall apply to the special scheme provided for in Article 26(3) in Directive 77/388/EEC. The definitions set out in Article 26(3) shall also apply for the purposes of this Title. Article 9h

1. The information from the non-established taxable person to the Member State of identification when his activities commence set out in the first subparagraph of Article 26(3)(b)(1) of Directive 77/388/EEC is to be submitted in an electronic manner. The technical details, including a common electronic message, shall be determined in accordance with the procedure provided for in Article 10.

2. The Member State of identification shall transmit the information referred to in paragraph 1 by electronic means to the competent authorities of the other Member States within ten days from the end of the month during which the information was received from the non-established taxable person. In the same manner the competent authorities of the other Member States shall be informed of the allocated identification number. The technical details, including a common electronic message, by which the information is to be transmitted shall be determined in accordance with the procedure provided for in Article 10.

3. The Member State of identification shall without delay inform by electronic means the competent authorities of the other Member States if a non-established taxable person is excluded from the identification register.

Article 9i

1. The return with the details set out in the second subparagraph of Article 26(3)(b)(4) of Directive 77/388/EEC shall be submitted in an electronic manner. The technical details, including a common electronic message shall be determined in accordance with the procedure provided for in Article 10.

2. The Member State of identification shall transmit the information referred to in paragraph 1 by electronic means to the competent authority of the Member State concerned at the latest ten days after the end of the month in which the return was received. Member States, which have required the tax return to be made in a currency other than euro, shall convert the amounts into euro using the exchange rate valid for the last date of the reporting period. The exchange shall be done following the exchange rates published by the European Central Bank for that day, or, if there is no publication on that day, on the next day of publication. The technical details, by which this information is to be transmitted shall be determined in accordance with the procedure provided for in Article 10.

3. The Member State of identification shall transmit by electronic means to the Member State of consumption the information needed to link each payment with a relevant quarterly tax return.

Article 9j The provisions in Article 4(1) shall also apply to information collected by the Member State of identification in accordance with Article 26(3)(b)(1) and (4) of Directive 77/388/EEC. Article 9k

1. The Member State of identification shall ensure that the amount the non-established taxable person has paid is transferred to the bank account denominated in euro, which has been designated by the Member State of consumption to which the payment is due. Member States, which have required the payments in a currency other than euro shall convert the amounts into euro using the exchange rate valid for the last date of the reporting period. The exchange shall be done following the exchange rates published by the European Central Bank for that day, or, if there is no publication on that day, on the next day of publication. The transfer shall take place at the latest ten days after the end of the month in which the payment was received.

2. If the non-established taxable person does not pay the total tax due, the Member State of identification shall ensure that the payment is transferred to the Member States of consumption in proportion to the tax due in each Member State. The Member State of identification shall inform by electronic means the competent authorities of the Member States of consumption thereof.

Article 9l

1. Member States shall notify by electronic means the competent authorities of the other Member States of the relevant bank account numbers for receiving payments in accordance with Article 9k.

2. Member States shall without delay notify by electronic means the competent authorities of the other Member States and the Commission of changes in the standard tax rate.";

(2) In Article 13(1), the first sentence shall be replaced by the following: " The Commission and the Member States shall ensure that such existing or new communication and information exchange systems as are necessary to provide for the exchanges of information described in Article 9b and 9c and in Articles 9h and 9i are operational by the dates specified in Article 3(1) of Directive 2002/38/EC and in Article 3 of Directive 2003/xx/EC, respectively."

Article 2

This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Union.

It shall apply from 1 July 2003.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, [...]

For the European Parliament For the Council

The President The President

[...] [...]