1999/622/EC, Euratom: Commission Decision of 8 September 1999 on the treatment of repayments of VAT to non-taxable units and to taxable units for their exempt activities, for the purpose of implementing Council Directive 89/130/EEC, Euratom on the harmonisation of the compilation of gross national product at market prices (notified under document number C(1999) 2533) (Text with EEA relevance)
Date: 1999-09-08
Institutions: European Commission
Subjects: VAT, economic convergence, gross national product, market prices, redemption, tax exemption

17. 9. 1999

EN

Official Journal of the European Communities

L 245/51

COMMISSION

COMMISSION DECISION

of 8 September 1999

on the treatment of repayments of VAT to non-taxable units and to taxable units for their exempt
implementing Council Directive 89/130/EEC, Euratom on the
activities,

for the purpose of

harmonisation of the compilation of gross national product at market prices

(notified under document number C(1999) 2533)

(Text with EEA relevance)

(1999/622/EC, Euratom)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

HAS ADOPTED THIS DECISION:

Having regard to the Treaty establishing the European
Community,

Having regard to the Treaty establishing the European Atomic
Energy Community,

Having regard to Council Directive 89/130/EEC, Euratom of 13
February 1989 on the harmonisation of the compilation of
gross national product at market prices (1), and in particular
Article 1 thereof,

(1) Whereas the European System of Integrated Economic
Accounts (ESA second edition), does not specify expli-
citly the treatment of repayments of VAT to non-taxable
units and to taxable units, for their exempt activities;

(2) Whereas for the purpose of the calculation of gross
national product at market prices (GNPmp) pursuant to
Article 1 of Directive 89/130/EEC, Euratom, it is neces-
sary to clarify the treatment of repayments of VAT to
non-taxable units and to taxable units, for their exempt
activities, for the purpose of ESA second edition;

(3) Whereas the sixth Council Directive 77/388/EEC of 17
May 1977 on the harmonisation of the laws of the
Member States relating to turnover taxes — Common
system of value added tax: uniform basis of assess-
ment (2), as last amended by Directive 1999/59/EC (3),
specifies the notions of taxable person, of non-taxable
person and of exempt activity;

(4) Whereas the measures provided for in this Decision are
in accordance with the opinion of the committee estab-
lished by Article 6 of Directive 89/130/EEC, Euratom,

Article 1

In compiling national accounts aggregates for the purpose of
the implementation of Directive 89/130/EEC, Euratom, repay-
ments of VAT incurred on their purchases, made to
— non-taxable persons,
— taxable persons, for their exempt activities,

shall be treated under ESA second edition as current transfers
(in the distribution of income account — C3) or capital trans-
fers (in the capital account — C5), and not as if they were
deductible VAT.

For a harmonised application of this Decision, non-taxable
persons are as defined in Article 4 of
the sixth Directive
77/388/EEC, Euratom, and the exempt activities envisaged are
those listed in Article 13 of the sixth Directive 77/388/EEC,
Euratom.

Article 2

The provisions of Article 1 shall apply to GNP data transmitted
pursuant to Directive 89/130/EEC, Euratom, for the years from
1988 onwards.

This Decision is adressed to the Member States.

Article 3

Done at Brussels, 8 September 1999.

For the Commission

Yves-Thibault DE SILGUY

Member of the Commission

(1) OJ L 49, 21.2.1989, p. 26.
(2) OJ L 145, 13.6.1977, p. 1.
(3) OJ L 162, 26.6.1999, p. 63.