ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (84) 4 77 
 
 
 
Vol. 1984/0 193 
  
 
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 open ing to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic 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 file 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 1983 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
C O M (84) 477 final
Brussels, 6  August 1984
C O M M IS S IO N  C O M M U N IC A T IO N  T O  T H E _ C O U N C IL
concerning the application of Article 27 of the Sixth Council Directive 
of 17 M a y  1977 on value added tax to a  request for derogation 
submitted by the Governments of the Federal Republic of 
Germany and the Netherlands
C O M (84) 477 final

-  2 -
Commission Communication to the Council concerning the application of  
Article 27 of the Sixth Council Directive of 17 M a y  1977 on value added  
tax (1) to a  request for derogation submitted by the Governments of the  
Federal Republic of G erm any and the Netherlands
1. O n  12 and 2 1  June 1984, the G erm an  and D utch Governments
informed the Commission, pursuant to the above provisions, of their  
intention to introduce a  measure derogating from  the Sixth Directive.
T h e purpose of the derogation is, as provided for in the draft  
agreement between the two M e m b e r  States, to simplify the collection  
of V A T  on supplies relating to construction and maintenance w ork on
the diversion of the E m s  canal and the extension of the port of E m d en .
T he measure will have n o effect on the Community's o w n  resources accruing  
.J r o m  va ' ■ u 5n(§ere^heaàërogation, all the w ork relating to the construction 
and maintenance will be taxed together.
Since the Federal Republic of G erm any will assume responsibility  
for this work, V A T  will be levied on these operations by the G erm a n  
authorities alone.
3. T h e Commission informed the other M e m b e r  States, by letter  
dated 9 July 1984, of the request submitted b y the G erm a n  and D utch  
Governments.
4. In accordance with Article 27(4) of the Sixth Directive, the  
Council's decision will be deem ed to have been adopted if, within tw o  
months of the other M e m b e r  States being informed, as described at 3  
above, neither the Commission nor any M e m b e r  State has requested that  
the matter be raised by the Council.
5. Provided that the derogation proposed by the G erm a n  and D utch  
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. T h e  Commission requests the Council to publish the text of  
paragraphs 1  to 3 of this Communication in the Official Journal together  
with its decision.

COMMUNICATION
from the Government of the Federal Republic of Germany
Subject :  Sixth Directive on the harmonization of turnover taxes;
Introduction of simplification procedures (Article 27(1) to  
(4))
I.
The Federal Republic of Germany and the Kingdom of the Netherlands  
disagree on where their common frontier runs in the Ems estuary. In the  
Ems-Dollart Treaty of 8 April 1960, this matter was expressly left open.
Tine Federal Republic of Germany intends to sh ift the Ems shipping  
channel where it passes through the disputed area and to extend the
harbour at Emden.  The details are to be laid down in a treaty between
the Federal Republic of Germany and the Kingdom of the Netherlands.  
Under the project,  the Federal Republic of Germany will carry out  
various building works (e.g. shifting of the Ems shipping channel, '  
hydraulic-fill works on the eastern part of the "Geiseriicken",  
construction of a guide bank). It will also be responsible for
subsequent maintenance.
Once the essential work to shift the Ems shipping channel and to  
f-'-H the eastern part of the "Geiseriicken" has been completed, a new  
frontier arrangement is to take effect. The building and maintenance  
works to be carried out and paid for by the Federal Republic of Germany
be located mainly in the area that is the subject of the
territorial dispute although some of them will,  after the entry into
force of the new frontier arrangement, be carried out on Dutch  
territory.

- 2  -
The proposed treaty is to include the following provision on 
turnover tax :
"The building and maintenance works carried out under this Treaty
by the German side shall be subject to the Turnover Tax Law of the
Federal Republic of Germany".
This provision makes it clear that transactions carried out in the 
disputed area as part of the building and maintenance works will be 
liable to German turnover tax. Without such a provision, taxation would 
not be ensured. In the case of transactions taking place on Dutch 
territory, the provision, while departing from the principle of 
territorial application (Article 3 of the Sixth Directive), serves the 
purpose of simplification. If no such provision were incorporated in the 
treaty, the contractors concerned would, whenever they supplied goods or 
services in connection with those works, have to ascertain whether the 
transactions in question were located on German territory, on Dutch 
territory or in the disputed area.
All in all. under the proposed provision, the turnover tax 
chargeable on the building and maintenance works will accrue to the 
country carrying out and financing those works.
II.
Authorization is sought for the proposed provision in so far as it 
departs from Article 3 of the Sixth Directive.
Pursuant to Article 27(1) of the Directive, special derogatory 
measures may be introduced that simplify the procedure for charging tax. 
This also applies to agreements between Member States (cf. Council and 
Commission statement concerning Article 27. written into the minutes).

- 3  -
As explained, the proposed provision will help to simplify 
taxation. Since all the building and maintenance works are liable to 
turnover tax in the Federal Republic of Germany, taxation of final 
consumption is not impaired. Ibis means that the Community's own 
resources accruing from VAT are also unaffected.

C O M M U N IC A T IO N
from  the G overnm ent of the Netherlands
Subject :  Sixth Directive on turnover taxes; Introduction of
simplification procedures (Article 27(1) to (4))
The Federal Republic of Germany and the Kingdom of the Nether­
lands disagree on where their common frontier runs in the Ems estuary.
In the Ems/Dollart-Treaty of 8 April 1960, this matter was expressly  
left open.
The Federal Republic of Germany intends to shift the Ems  
shipping channel where it passes through the disputed area and to extend  
the harbour at Emden. The details are to be laid down in a treaty between  
the Federal Republic of Germany and the Kingdom of the Netherlands. Under  
the project, the Federal Republic of Germany will carry out various  
building works (e.g. shifting of the Ems shipping channel, hydraulic-fill  
work on the eastern part of the "Geiserücken", construction of a guide  
bank). It will also be responsible for subsequent maintenance.
Once the essential work to shift the Ems shipping channel and  
to fill the eastern part of the "Geiserücken" has been completed, a new  
frontier arrangement is to take effect. The building and maintenance works  
to be carried out and paid for by the Federal Republic of Germany will be  
located mainly in the area that is the subject of the territorial dispute  
although some of them will, after the entry into force of the new frontier  
arrangements, be carried out on Dutch territory. The proposed treaty is  
to include the following provision on turnover tax:
"The building and maintenance works carried out under this Treaty by  
the German side shall be subject to the Turnover Tax Law of the  
Federal Republic of Germany."
This provision makes it clear that transactions carried out in  
the disputed area as part of the building and maintenance works will be  
liable to German turnover tax. Without such a provision, taxation would  
not be ensured. In the case of transactions taking place on Dutch terri­
tory, the provision, while departing from the principle of territorial  
application (Article 3 of the Sixth Directive), serves the purpose of

-  2
simplification. If no such provision were incorporated in the treaty,  
the contractors concerned would, whenever they supplied goods or  
services in connection with those works, have to ascertain whether  
the transactions in question were located on German territory, on  
Dutch territory or in the disputed area. All in all, under the proposed  
provision, the turnover tax chargeable on the building and maintenance  
works will accrue to the country carrying out and financing those works
Authorization is sought for the proposed provision in so far  
as it departs from Article 3 of the Sixth Directive.
Pursuant to Article 27(1) of the Directive, special derogatory  
measures may be introduced that simplify the procedure for charging tax  
This also applies to agreements between Member States (cf. Council and  
Commission statement concerning Article 27, written into the minutes).
As explained, the proposed provision will help to simplify  
taxation. Since all the building and maintenance works are liable to  
turnover tax in the Federal Republic of Germany, taxation of final  
consumption is not impaired. This means that the Community's own  
resources accruing from VAT are also unaffected.