Legislative resolution embodying Parliament's opinion on the proposal for a Council Directiveamending Directive 77/ 388/EEC as regards the rules governing the right to deduct value added tax (COM(98)0377 C4-0474/98 98/0209(CNS)) (Consultation procedure)
Date: 1999-01-14
Institutions: Committee on Economic and Monetary Affairs, European Parliament
Subjects: catalogue, new economic order, nut, simplification of formalities, single market













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51998AP0490

Legislative resolution embodying Parliament's opinion on the proposal for a Council Directiveamending Directive 77/ 388/EEC as regards the rules governing the right to deduct value added tax (COM(98)0377 C4-0474/98 98/0209(CNS)) (Consultation procedure)  


Official Journal C 104 , 14/04/1999 P. 0122 





A4-0490/98Proposal for a Council Directive amending Directive 77/388/EEC as regards the rules governing the right to deduct value added tax (COM(98)0377 - C4-0474/98 - 98/0209(CNS))The proposal was approved with the following amendments:(Amendment 2)Recital 22a (new)>Original text>>Text following EP vote>Whereas in view of the differences between the Member States as regards the deduction of VAT and exemptions for certain categories of persons and activities (cultural, artistic, musical, health-related, etc.) the rules and conditions in the Member States need to be brought closer together;(Amendment 3)Recital 22b (new)>Original text>>Text following EP vote>Whereas expenditure on accommodation, food and drink, when incurred in the context of a professional activity, are no different from other business expenditure;(Amendment 5)Recital 22c (new)>Original text>>Text following EP vote>Whereas there is keen competition between hotels in the European Union and those in third countries as regards the holding of congresses;(Amendment 6)Recital 22d (new)>Original text>>Text following EP vote>Having regard to the importance of the hotel, restaurant and cafe sector for employment and social integration in particular, in view of the fluctuations in employment availability in response to demand in this sector;(Amendment 7)ARTICLE 1(2)Articles 17a and 17b (Directive 77/388/EEC)>Original text>Article 17aLimitations of the right of deduction1. As regards expenditure relating to passenger cars which are not used solely for business purposes, Member States may provide that the deduction of the value added tax charged on such expenditure shall be calculated within the limit of a ceiling to be set by the Member States at not less than 50% of the said tax.>Text following EP vote>Article 17aLimitations of the right of deduction1. As regards expenditure relating to passenger cars which are not used solely for business purposes, Member States may provide that the deduction of the value added tax charged on such expenditure shall be calculated within the limit of a ceiling to be set by the Member States at not less than 50% of the said tax.>Original text>The provisions contained in the above subparagraph shall not apply to passenger cars which constitute the taxable person¨s stock in trade nor to those which are strictly necessary for the exercise of the business activity, nor to the goods and services connected with these cars, where their non-business use is less than 10%.>Text following EP vote>The provisions contained in the above subparagraph shall not apply to passenger cars which constitute the taxable person¨s stock in trade nor to those which are strictly necessary for the exercise of the business activity, nor to the goods and services connected with these cars, where their non-business use is less than 10%, (mileage being considered as the criterion for defining this limit).>Original text>'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 driver.>Text following EP vote>'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 driver.>Original text>'Expenditure relating to passenger cars¨ means expenditure on the purchase, including under contracts to make up work and the like, manufacture, importation, leasing or hire, use, modification, repair or maintenance, and expenditure on supplies or services performed in relation to such vehicles.>Text following EP vote>'Expenditure relating to passenger cars¨ means expenditure on the purchase, including under contracts to make up work and the like, manufacture, importation, leasing or hire, use, modification, repair or maintenance, and expenditure on supplies or services performed in relation to such vehicles.>Original text>2. Value added tax charged on expenditure on accommodation, food or drink, other than that incurred by a taxable person in relation to the supply for consideration by that taxable person of accommodation, food or drink shall be deductible at the rate of 50%.>Text following EP vote>Deleted>Original text>3. The provisions of paragraphs 1 and 2 shall apply without prejudice to Article 17(5).>Text following EP vote>3.The provisions of paragraph 1 shall apply without prejudice to Article 17(5).>Original text>Article 17bExclusions from the right of deductionThe following expenditure is excluded from the right of deduction:>Text following EP vote>Article 17bExclusions from the right of deductionThe following expenditure is excluded from the right of deduction:>Original text>(a) expenditure relating to passenger cars as defined in Article 17a(1) in respect of which the business use is less than 10%.>Text following EP vote>(a)expenditure relating to passenger cars as defined in Article 17a(1) in respect of which the business use is less than 10%.>Original text>(b) expenditure on luxuries, amusements or entertainment.>Text following EP vote>(b)expenditure on luxuries or amusements.>Original text>>Text following EP vote>(ba) expenditure on accommodation, food or drink, unless the taxable person proves that the expenditure was exclusively of a professional nature (business travel for the taxable person and his staff and the entertainment of business partners).(Amendment 8)ARTICLE 1(5)Article 28h (Directive 77/388/EEC)>Original text>The following point (d) is added to Article 22(4):"(d) In so far as the taxable person exercises a right to deduct which arose pursuant to Article 17(3a), the taxable person shall supplement the declaration by a specific document which must show the amount of deductions to be made, broken down by Member State.>Text following EP vote>The following point (d) is added to Article 22(4):"(d) In so far as the taxable person exercises a right to deduct which arose pursuant to Article 17(3a), the taxable person shall supplement the declaration or advance turnover tax return by a specific document which must show the amount of deductions to be made, broken down by Member State.>Original text>The taxable person shall attach a copy of the invoices or import documents to the specific document in order to provide proof of these amounts.>Text following EP vote>The taxable person shall attach a copy of the invoices or import documents to the specific document in order to provide proof of these amounts.>Original text>The taxable person shall certify in the specific document provided for in the first subparagraph that he has no value added tax identification number in the Member State where the VAT deductible pursuant to Article 17(3a) is due or paid.¨>Text following EP vote>The taxable person shall certify in the specific document provided for in the first subparagraph that he has no value added tax identification number in the Member State where the VAT deductible pursuant to Article 17(3a) is due or paid.¨(Amendment 9)ARTICLE 3(1), 1st subparagraph>Original text>1. Member States shall bring into force the necessary laws, regulations and administrative provisions in order to comply with this Directive on 1 January 1999. They shall forthwith inform the Commission thereof.>Text following EP vote>1.Member States shall bring into force the necessary laws, regulations and administrative provisions in order to comply with this Directive on 1 January 1999. They shall forthwith inform the Commission and the other Member States thereof. They shall also inform both the Commission and the other Member States in good time about any subsequent modifications made to these provisions.(Amendment 10)ARTICLE 3(2)>Original text>2. Member States shall communicate to the Commission the texts of the provisions of national law which they adopt in the field governed by this Directive.>Text following EP vote>2.Member States shall communicate to the Commission and the other Member States the texts of the provisions of national law which they adopt in the field governed by this Directive and any subsequent modifications thereto.Legislative resolution embodying Parliament's opinion on the proposal for a Council Directiveamending Directive 77/388/EEC as regards the rules governing the right to deduct value added tax (COM(98)0377 - C4-0474/98 - 98/0209(CNS))(Consultation procedure)The European Parliament,- having regard to the Commission proposal to the Council COM(98)0377 - 98/0209(CNS) ((OJ C 219, 15.7.1998, p. 16.)),- having been consulted by the Council pursuant to Article 99 of the EC Treaty (C4-0474/98),- having regard to Rule 58 of its Rules of Procedure,- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy (A4-0490/98),1. Approves the Commission proposal, subject to Parliament's amendments;2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 189a(2) of the EC Treaty;3. Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;4. Calls for the conciliation procedure to be opened should the Council intend to depart from the text approved by Parliament;5. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;6. Instructs its President to forward this opinion to the Council and Commission.