2000/746/EC: Council Decision of 27 November 2000 authorising the French Republic to apply a measure derogating from Article 11 of the sixth Directive (77/388/EEC) relating to the common system of value added tax
Date: 2000-11-27
Institutions: Council of the European Union
Subjects: France, VAT, derogation from EU law, gold, goods and services

1.12.2000

EN

Official Journal of the European Communities

L 302/61

II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 27 November 2000

authorising the French Republic to apply a measure derogating from Article 11 of the sixth
Directive (77/388/EEC) relating to the common system of value added tax

(2000/746/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community,

Having regard to the sixth Council Directive (77/388/EEC) of
17 May 1977 on the harmonisation of the laws of Member
States relating to turnover taxes — Common system of value
added tax: uniform basis of assessment (1), hereinafter referred
to as ‘the sixth VAT Directive’, and in particular Article 27
thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

(4)

In a letter registered by the Commission's Secretariat-
General on 17 May 2000, the Government of the French
Republic requested authorisation on the basis of Article
27 of the Sixth VAT Directive to apply a measure derog-
ating from Article 11(A)(1)(a) of the Directive.

Under Article 27(1) of the sixth VAT Directive, the
Council, acting unanimously on a proposal from the
Commission, may authorise any Member State to intro-
duce special measures for derogation from the provi-
sions of the Directive, in order to simplify the procedure
for charging the tax or to prevent certain types of tax
evasion or avoidance.

In accordance with the said Article 27,
the other
Member States were informed of the request from the
French Republic by letter dated 14 June 2000.

Article 11(A)(1)(a) of the sixth VAT Directive states that,
in principle, the taxable amount in respect of supplies of
goods and services shall be everything which constitutes

(5)

(6)

(7)

(8)

(9)

the consideration which has been or is to be obtained by
the supplier for such supplies from the purchaser, the
customer or a third party.

The French Republic, by way of derogation from these
provisions, has requested authorisation to include in the
taxable amount for a transaction involving the working
of
the raw material
provided by the purchaser of the service and used to
make the finished product.

investment gold the value of

The aim of the derogation is to avoid abuse of the
exemption for investment gold and thus to prevent
certain types of tax evasion or avoidance. It therefore
meets the conditions set out in Article 27 of the sixth
VAT Directive.

The forms of
tax evasion or avoidance in question
consist mainly of the initial purchase of VAT-exempt
investment gold which is then worked to make jewellery
or other goods, without VAT being charged on the value
of
transaction
included
concerned.

investment

in the

gold

The derogation is granted until 31 December 2004, so
that an assessment can be made as to whether it is
appropriate in the light of changes in the practical
application of the special system for investment gold
established by Directive 98/80/EC (2).

The derogation has no negative impact on the European
Communities' own resources derived from value added
tax,

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

2000/65/EC (OJ L 269, 21.10.2000, p. 44).

(2) OJ L 281, 17.10.1998, p. 31.

L 302/62

EN

Official Journal of the European Communities

1.12.2000

HAS ADOPTED THIS DECISION:

Article 3

Article 1

This Decision is addressed to the French Republic.

The French Republic is authorised, by derogation from Article
11(A)(1)(a) of the sixth VAT Directive, to include in the taxable
amount
services
comprising the working of tax-exempt investment gold the
value of the gold contained in the finished product based on
the current market value of the investment gold.

the supply of goods or

in respect of

Done at Brussels, 27 November 2000.

Article 2

The authorisation granted under Article 1 shall expire on 31
December 2004.

For the Council

The President

L. FABIUS