Proposal for a Council Directive amending Directive 77/388/EEC on the common system of value added tax, with regard to the length of time during which the minimum standard rate is to be applied
Date: 2000-09-20
Institutions: European Commission
Subjects: VAT, competition, single market, tax harmonisation

30.1.2001

EN

Official Journal of the European Communities

C 29 E/265

Proposal for a Council Directive amending Directive 77/388/EEC on the common system of value
added tax, with regard to the length of time during which the minimum standard rate is to be
applied

(2001/C 531 E/13)

COM(2000) 537 final (cid:151) 2000/0223(CNS)

(Submitted by the Commission on 20 September 2000)

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of
Committee,

the Economic and Social

Whereas:

(cid:145)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 2001 until 31
December 2005, this percentage may not be less than
15 %.

On a proposal from the Commission and after consulting
the European Parliament and the Economic and Social
Committee, the Council shall decide unanimously on the
level of the standard rate to be applied after 31 December
2005.(cid:146)

(1) Article 12(3)(a) of Council Directive 77/388/EEC of 17 May
1977 on the harmonisation of the laws of the Member
States relating to turnover taxes (cid:151) Common system of
value added tax: uniform basis of assessment (1),
lays
down that the Council shall decide on the level of the
standard rate to be applied after 31 December 2000.

Article 2

1. Member States shall bring into force the laws, regulations
and administrative provisions necessary to comply with this
the latest. They shall
Directive by 1 January 2001 at
forthwith inform the Commission thereof.

(2) While the standard rate of value added tax currently in
force in the various Member States, combined with the
the transitional system, has ensured that
mechanism of
this system has functioned to an acceptable degree,
it is
nonetheless important to prevent a growing divergence in
the standard rates of VAT applied by the Member States
from leading to structural imbalances in the Community
and distortions of competition in some sectors of activity,
at least in the period in which a new VAT strategy is being
current
and modernise
implemented
to
Community legislation on VAT,
in the
set out
Commission communication of 7 June 2000 (2).

simplify

as

(3) It

is

therefore

appropriate

current
minimum standard rate at 15 % for a further period long
enough to allow the strategy for
simplification and
modernisation to be implemented,

to maintain the

HAS ADOPTED THIS DIRECTIVE:

Article 1

When Member States adopt those provisions, they shall contain
a reference to this Directive or be accompanied by such a
reference on the occasion of
their official publication.
Member States shall determine how such reference is to be
made.

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

Article 3

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

It shall apply from 1 January 2001.

The first and second subparagraphs of Article 12(3)(a) of
Directive 77/388/EEC are replaced by the following:

Article 4

This Directive is addressed to the Member States.

(1) OJ L 145, 13.6.1977, p. 1. Directive as last amended by Directive

2000/17/EC (OJ L 84, 5.4.2000, p. 24).

(2) COM(2000) 348 final.