NoC 116/4 Official Journal of the European Communities 9.5.79 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a 10th Council Directive on the harmonization of the laws of the Member 
States relating to turnover taxes, supplementing Directive 77/388/EEC on the application 
of value added tax to the hiring out of movable tangible property 
(Submitted by the Commission to the Council on 23 April 1979) 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Economic Community, and in particular 
Articles 99 and 100 thereof, 
Having regard to the Sixth Council Directive 
77/388/EEC 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 
bases of assessment ('), 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas, pursuant to Article 4 (2) of the 
aforementioned Directive, the hiring out of movable 
tangible property may constitute an economic activity 
subject to value added tax; 
Whereas any person exercising an economic activity 
within a Member State must satisfy the obligations 
laid down in Article 22 of the aforementioned 
Directive; 
Whereas movable tangible property may be hired out 
in a Member State and placed at the disposal of a 
O OJ No L 145, 13. 6. 1977. customer in the same country or in another Member 
State by a taxable person established abroad; 
Whereas, in such cases, application of Article 9 (1) of 
the aforementioned Directive may give rise to 
practical difficulties, particularly where a single 
operation is involved; 
Whereas it is therefore necessary to provide for the 
irrebuttable presumption that the supplier is 
established in the country in which the property is at 
the time it is actually made available to the customer; 
Whereas, however, such a legal fiction should not be 
created with regard to the hiring out of forms of 
transport; whereas Article 9 (1) should, in particular, 
for reasons of control, be strictly applied, the place 
where the supplier has established his business being 
treated as the place of supply of such services, 
HAS ADOPTED THIS DIRECTIVE: 
Article 1 
The following subparagraph shall be added to Article 
9 (1) of Council Directive 77/388/EEC of 17 May 
1977: 
'In the case of the hiring out of movable tangible 
property, other than forms of transport, the 
supplier shall be deemed to have established his 
business at the place where the property is at the 
time it is actually made available to the customer.' 
9. 5. 79 Official Journal of the European Communities NoC 116/5 
Article 2 applying this Directive. The Commission shall inform 
the other Member States thereof. 
1. Member States shall bring into force the 
measures necessary to comply with this Directive not 
later than 1 January 1980. 
Article 3 
2. Member States shall inform the Commission of 
the provisions which they adopt for the purpose of This Directive is addressed to the Member States. 
Proposal for a Council Regulation amending the Financial Regulation of 21 December 
1977 applicable to the general budget of the European Communities 
(Submitted by the Commission to the Council on 23 April 1979) 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Coal and Steel Community, and in 
particular Article 78h 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 the proposal from the Commission, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Court of 
Auditors, 
Whereas, in the interests of greater simplicity and 
clarity in the keeping of accounts, it would appear 
appropriate to abolish the additional period for 
entering in the accounts expenditure under the 
EAGGF Guarantee Section; 
Whereas the abolition of this period would permit a 
more rational scheduling of the time limits governing 
the procedure for the rendering and auditing of the 
accounts; 
Whereas, to this end, certain provisions of the 
Financial Regulation of 21 December 1977 (') must 
be amended, 
(') OJ No L 356, 31. 12. 1977, p. 1. HAS ADOPTED THIS REGULATION: 
Article 1 
The Financial Regulation of 21 December 1977 is 
hereby amended as follows: 
1. The first subparagraph of Article 6 (3) shall be 
replaced by the following: 
'3. In the case of the appropriations referred to 
in paragraph 1 (b), the Commission shall transmit 
to the Council and shall forward to the European 
Parliament, not later than 21 February, the 
requests to carry over appropriations, duly sub­
stantiated, made by the European Parliament, the 
Council, the Court of Justice, the Court of 
Auditors and the Commission itself.' 
2. The introductory paragraph of Article 73 shall be 
replaced by the following: 
'The Commission shall draw up, not later than 1 
April of the following year, a revenue and 
expenditure account for the Communities, which 
shall include the following documents classified 
in accordance with the budget nomenclature:' 
(remainder unchanged). 
3. Article 74 shall be replaced by the following: 
'Each institution shall, not later than 15 February, 
forward to the Commission the information 
required for drawing up the revenue and 
expenditure account and the balance sheet, 
together with a contribution to the analysis of the 
financial management referred to in Article 75.'