Council Directive 1999/49/EC of 25 May 1999 amending, with regard to the level of the standard rate, Directive 77/388/EEC on the common system of value added tax
Date: 1999-05-25
Institutions: Council of the European Union
Subjects: VAT, VAT rate, consumer goods, provision of services, tax harmonisation, tax on consumption

2. 6. 1999

EN

Official Journal of the European Communities

L 139/27

COUNCIL DIRECTIVE 1999/49/EC

of 25 May 1999

amending, with regard to the level of the standard rate, Directive 77/388/EEC on
the common system of value added tax

THE COUNCIL OF THE EUROPEAN UNION,

at a later stage to decide on the levels of both the
standard rate and reduced rate or rates,

Having regard to the Treaty establishing the European
Community, and in particular Article 93 thereof,

Having regard to the proposal from the Commission (1),

HAS ADOPTED THIS DIRECTIVE:

Having regard to the opinion of the European Parlia-
ment (2),

Article 1

Having regard to the opinion of the Economic and Social
Committee (3),

(1) Whereas Article 12(3)(a) of sixth Council Directive
77/388/EEC of 17 May 1977 on the harmonisation
of the laws of the Member States relating to turn-
over taxes (cid:190) Common system of value added tax:
uniform basis of assessment (4), lays down that the
Council shall decide on the level of the standard
rate to be applied after 31 December 1998; whereas
the standard rate of value added tax is fixed by each
Member State as a percentage of
the taxable
amount and is the same for the supply of goods
and for the supply of services; whereas from 1
this
January 1993 until 31 December 1998,
percentage may not be less than 15 %;

(2) Whereas experience has shown that the standard
rate of value added tax currently in force in the
various Member States, combined with the mech-
anism of the transitional system, have ensured that
this transitional system has functioned satisfac-
torily; whereas it seems therefore appropriate, with
regard to the standard rate, to maintain the current
level of the minimum rate for a further period of
time;

(3) Whereas, however, the Commission report on rates
highlighted the fact that distortions of competition
exist and are likely to be accentuated by the intro-
duction of the single currency; whereas the period
of application of
the standard rate should be
limited to two years in order to enable the Council

(1) OJ C 409, 30.12.1998, p. 13.
(2) Opinion of 23 March 1999 (not yet published in the Official

Journal).

(3) OJ C 101, 12.4.1999, p. 73.
(4) OJ L 145, 13.6.1977, p. 1. Directive as last amended by

Directive 98/80/EC (OJ L 281, 17.10.1998, p. 31).

Article 12(3)(a) of Directive 77/388/EEC shall be replaced
by the following:

‘(a) The standard rate of value added tax shall be fixed
by each Member State as a percentage of
the
taxable amount and shall be the same for the
supply of goods and for the supply of services.
From 1 January 1999 until 31 December 2000,
this percentage may not be less than 15 %.

On a proposal from the Commission and after
consulting the European Parliament and the
the Council
Economic and Social Committee,
shall decide unanimously on the level of
the
standard rate to be applied after 31 December
2000.

Member States may also apply either one or two
reduced rates. These rates shall be fixed as a
percentage of the taxable amount, which may not
be less than 5 %, and shall apply only to supplies
of the categories of goods and services specified in
Annex H.'

Article 2

1. Member States shall bring into force the laws, regu-
lations and administrative provisions necessary to comply
with this Directive by 1 January 1999 at the latest. They
shall forthwith inform the Commission thereof.

When Member States adopt these measures, they shall
contain a reference to this Directive or shall be accompa-
nied by such reference at the time of their official publi-
cation. The methods of making such a reference shall be
laid down by the Member States.

2. Member States shall communicate to the Commis-
sion the text of the provisions of domestic law which they
adopt in the field covered by this Directive.

L 139/28

EN

Official Journal of the European Communities

2. 6. 1999

This Directive shall enter into force on the day of its publication in the Official Journal of
the European Communities.

Article 3

It shall apply from 1 January 1999.

This Directive is addressed to the Member States.

Article 4

Done at Brussels, 25 May 1999.

For the Council

The President

H. EICHEL