29.2.84 Official Journal of the European Communities No C 56/7 
II 
(Preparatory Acts) 
COMMISSION 
Amendment to the proposal for a Twelfth Directive relating to the common system of 
valued added tax: expenditure not eligible for deduction of value added tax (') 
COM(84) 84 final 
(Submitted by the Commission to the Council pursuant to Article 149 (2) of the EEC Treaty 
on 20 February 1984) 
(84/C 56/10) 
Article 1 
1. In the first subparagraph of paragraph 2, the 
words 'passenger cars' and 'or motor cycles' are 
deleted. 
The second subparagraph of paragraph 1 is 
unchanged. 
The third subparagraph of paragraph 1 is 
transferred to the end of paragraph la, set out 
below. 
la. The following paragraph la is inserted after 
paragraph 1: 
'The right to deduct value added tax in respect of 
expenditure on the purchase, manufacture, 
importation, leasing or hire, use, modification, 
repair or maintenance of passenger cars and 
motor cycles shall be subject to the following 
restrictions in all Member States: 
(a) within a period of two years at the most after 
the entry into force of this Directive, the 
right to deduct value added tax charged in 
respect of the abovementioned vehicles shall 
be set at a level between not less than 25 % 
and not more than 75 % of the tax charged; 
(b) within a period of four years at the most after 
the entry into force of this Directive, the 
right to deduct value added tax charged in 
respect of the abovementioned vehicles shall, 
in all Member States, be fixed at 50 % of the 
tax charged. 
In the case of value added tax charged in respect 
of expenditure on supplies (fuels, lubricants, spare 
parts, etc.) for, or services performed in relation 
to, such vehicles and craft, the same rules on 
deductibility shall apply. 'Passenger car' means any road vehicle (including any 
trailer) other than one which, by its design and 
equipment, is intended solely for the transport of 
goods or is intended for industrial or agricultural use 
or has a seating capacity of more than nine persons 
including the dirver' (Text of the third subparagraph 
of Article 1 (1) of the initial proposal.) 
2. The beginning of paragraph 2 is amended as 
follows: 
'The exclusions from the right to deduct value 
added tax referred to in paragraphs 1 and la shall 
not apply to vehicles or craft which are:' 
(a) ' 
(b) 
(c) 
(d) J text unchanged. 
Article 2 
Paragraph 1 is amended to read as follows: 
'1. The right to deduct value added tax 
charged in respect of transport expenses incurred 
on business travel by a taxable person or by 
members of his staff shall be limited in the same 
proportions and in accordance with the same 
timetable as specified in Article 1 (la). "Business 
travel" means a journey undertaken by a taxable 
person or by a member of his staff for business 
reasons away from their place of establishment or 
away from the place at which they carry on their 
trade.' 
Paragraph 2 is unchanged. 
Article 3 
C) OJNoC37, 10.2. 1983, p. 8. Unchanged. 
No C 56/8 Official Journal of the European Communities 29.2.84 
Article 3a 
This new Article reads as follows: 
'A taxable person may request application of 
Article 17 (2) of Directive 77/388/EEC in respect 
of the items of expenditure listed in Articles 1, 2 
and 3 above if he can furnish proof that such 
expenditure has been made exclusively for 
business purposes. Member States shall maintain in force or 
introduce arrangements for verifying ex post facto 
that such expenditure was indeed made 
exclusively for business purposes. 
They shall notify the Commission of the 
provisions adopted to this end.' 
Articles 4 to 9 
Unchanged.