19.2.92 OfficialJournaloftheEuropeanCommunities NoC44/21
COMMISSION
AmendmenttotheproposalforaCouncilDirectivesupplementingthecommonsystemofvalue
addedtaxandamendingDirective77/388/EEC—Approximation ofVATrates
(92/C44/23)
COM(92)5final
(SubmittedbytheCommissionpursuanttoArticle149(3)oftheEECTreatyon24January1992)
AMENDED PROPOSAL ORIGINAL PROPOSAL
THECOUNCILOFTHEEUROPEAN COMMUNITIES
UnchangedTHECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle99
thereof,
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropean
Parliament ,
HavingregardtotheopinionoftheEconomicand
SocialCommittee,
Whereascompletingtheinternalmarket,whichisoneof
thefundamentalobjectivesoftheCommunity,requires
thatfiscalfrontiersbeabolished,thatistosaythatthe
systemofremissionoftaxonexportationandtheimpo­
sitionoftaxonimportationandoffrontiercontrolson
taxablepersonsaswellasonprivatepersonsbediscon­
tinued;
Whereas,ifdistortionsaretobeavoided,suchabolition
impliesinthecaseofvalueaddedtax,notonlya
uniformtaxbasebutalsothesamenumberofratesand
ratelevelswhicharesufficientlycloseasbetween
MemberStates;whereasitisthereforenecessaryto
amendCouncilDirective77/388/EEC('),aslast
amendedbytheActofAccessionofSpainandPortugal,Whereas,ifdistortionsaretobeavoided,suchabolition
impliesinthecaseofvalueaddedtax,notonlya
uniformtaxbasebutalsoharmonization ofratescarried
outinsuchafashionthatcross-border tradedoesnot
takeplacepurelyasaresultoffiscaldisparities;whereas
itisthereforenecessarytoamendCouncilDirective
77/388/EEC('),aslastamendedbytheActof
AccessionofSpainandPortugal;
WhereasMemberStates'fiscalrequirements arenot
identicalandvaryovertime,andfiscalharmonization
mustbothguaranteetheMemberStatessufficient
revenueandallowthemsufficientflexibilityinits
implementation ,
(')OJNoL145,13.6.1977,p.1.

NoC44/22 OfficialJournaloftheEuropeanCommunities 19.2.92
ORIGINAL PROPOSAL AMENDED PROPOSAL
HASADOPTEDTHISDIRECTIVE :
Article1
UnchangedHASADOPTEDTHISDIRECTIVE :
Article1
Directive77/388/EECisherebyamendedasfollows:
1.Article12(3)and(4)arereplacedbythefollowing:
'3.MemberStatesshallapplytworatesofvalue
addedtax,namelyastandardrateandareducedrate.
Thereducedratemaynotbelessthan4%ormore
than9%.
Thestandardratemaynotbelessthan14%ormore
than20%.
4.(a)Thereducedrateshallbeappliedtotrans­
actionsrelatingtothefollowinggoodsand
services:
—foodstuffs,excludingalcoholicbeverages,
—energyproductsforheatingandlighting,
—watersupplies,
—pharmaceutical products,
—books,newspapersandperiodicals,
—passengertransport .
(b)Thestandardrateshallbeappliedtotrans­
actionsrelatingtogoodsandservicesother
thanthosesetoutin(a)'.
(c)OnthebasisofareportbytheCommission,
theCouncilshallreviewtheabovementioned
standardandreducedrateseverythreeyears,
andactinginaccordancewithArticle99ofthe
EECTreatymayadjusttheseratesinthelight
offiscalrequirements'.
2.Paragraph2ofArticle28isherebydeleted. Unchanged
Article2
UnchangedArticle2
1.MemberStatesshalltakethenecessarymeasuresto
complywiththisDirectivenotlaterthan31December
1992.TheyshallforthwithinformtheCommission
thereof.
2.MemberStatesshallcommunicate tothe
Commissionthetextsofalltheprovisionsofnational
lawwhichtheyadoptinthefieldgovernedbythis
Directive .
Article3
ThisDirectiveisaddressedtotheMemberStates.Article3
Unchanged