Council Regulation (EC) No 1798/2003 of 7 October 2003 on administrative cooperation in the field of value added tax and repealing Regulation (EEC) No 218/92
Date: 2003-10-07
Institutions: Council of the European Union
Subjects: VAT, administrative cooperation, exchange of information, single market, tax evasion

15.10.2003

EN

Official Journal of the European Union

L 264/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1798/2003

of 7 October 2003

on administrative cooperation in the field of value added tax and repealing Regulation (EEC) No
218/92

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Com-
munity, and in particular Article 93 thereof,

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

Having regard to the opinion of the European Parliament (2),

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

Whereas:

(1)

(2)

(3)

Tax evasion and tax avoidance extending across the
frontiers of Member States lead to budget losses and
violations of the principle of fair taxation and are liable
to bring about distortions of capital movements and of
the conditions of competition. They therefore affect the
operation of the internal market.

Combating value added tax (VAT) evasion calls for close
cooperation between the administrative authorities in
each Member State responsible for the application of the
provisions in that field.

The tax harmonisation measures taken to complete the
internal market should therefore include the establish-
ment of a common system for the exchange of informa-
tion between the Member States whereby the Member
States' administrative authorities are to assist each other
and cooperate with the Commission in order to ensure
the proper application of VAT on supplies of goods and
intra-Community acquisition of goods and
services,
importation of goods.

(4)

Electronic storage and transmission of certain data for
VAT control purposes is indispensable for the proper
functioning of the VAT system.

(1) OJ C 270 E, 25.9.2001, p. 87.
(2) OJ C 284 E, 21.11.2002, pp. 121 and 191.
(3) OJ C 80, 3.4.2002, p. 76.

(5)

(6)

(7)

(8)

(9)

The conditions for the exchange of, and direct access of
Member States to, electronically stored data in each
Member State should be clearly defined. Operators
to certain of such data where
should have access
required for the fulfilment of their obligations.

The Member State of consumption has primary responsi-
bility for assuring that non-established suppliers comply
with their obligations. To this end, the application of the
temporary special scheme for electronically supplied
services that is provided for in Article 26c of 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 (4), requires the definition of
rules concerning the provision of
information and
transfer of money between the Member State of identifi-
cation and the Member State of consumption.

Council Regulation (EEC) No 218/92 of 27 January
1992 on administrative cooperation in the field of
indirect taxation (VAT) (5) established in this respect a
system of close cooperation amongst the Member States'
administrative authorities and between those authorities
and the Commission.

Regulation (EEC) No 218/92 supplements Council Direc-
tive 77/799/EEC of 19 December 1977 concerning
mutual assistance by the competent authorities of the
Member States in the field of direct and indirect taxa-
tion (6).

Those two legal instruments have proved to be effective
but are no longer able to meet the new requirements of
administrative cooperation resulting from the ever closer
integration of economies within the internal market.

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

2002/92/EC (OJ L 331, 7.12.2002, p. 27).

(5) OJ L 24, 1.2.1992, p. 1. Regulation as last amended by Regulation

(EC) No 792/2002 (OJ L 128, 15.5.2002, p. 1).

(6) OJ L 336, 27.12.1977, p. 15. Directive as last amended by the

1994 Act of Accession.

L 264/2

EN

Official Journal of the European Union

15.10.2003

The existence of two separate instruments for coopera-
tion on VAT has, moreover, hampered effective coopera-
tion between tax administrations.

HAS ADOPTED THIS REGULATION:

(10)

(11)

(12)

(13)

The rights and obligations of all parties concerned are
currently ill-defined. Clearer and binding rules governing
cooperation between Member States are therefore neces-
sary.

There is not enough direct contact between local or
national anti-fraud offices, with communication between
central liaison offices being the rule. This leads to ineffi-
ciency, under-use of the arrangements for administrative
cooperation and delays in communication. Provision
should therefore be made to bring about more direct
contacts between services with a view to making coop-
eration more efficient and faster.

Cooperation is also not intensive enough, in that, apart
from the VAT information exchange system (VIES), there
are not enough automatic or spontaneous exchanges of
information between Member States. Exchanges of infor-
mation between the respective administrations as well as
between administrations and the Commission should be
made more intensive and swifter in order to combat
fraud more effectively.

(14)

The provisions on VAT administrative cooperation of
Regulation (EEC) No 218/92 and of Directive 77/799/
EEC should therefore be joined and strengthened. For
reasons of clarity this should be done in a single new
instrument which replaces Regulation (EEC) No 218/92.

CHAPTER I

GENERAL PROVISIONS

Article 1

1.
This Regulation lays down the conditions under which
the administrative authorities in the Member States responsible
for the application of the laws on VAT on supplies of goods
and services, intra-Community acquisition of goods and impor-
tation of goods are to cooperate with each other and with the
Commission to ensure compliance with those laws.

To that end, it lays down rules and procedures to enable the
competent authorities of the Member States to cooperate and
to exchange with each other any information that may help
them to effect a correct assessment of VAT.

This Regulation also lays down rules and procedures for the
exchange of certain information by electronic means, in parti-
cular as regards VAT on intra-Community transactions.

For the period provided for in Article 4 of Directive 2002/38/
EC (3), it also lays down rules and procedures for the exchange
by electronic means of value added tax information on services
supplied electronically in accordance with the special scheme
provided for in Article 26c of Directive 77/388/EEC, and also
for any subsequent exchange of information and, as far as
services covered by that special scheme are concerned, for the
transfer of money between Member States' competent authori-
ties.

(15)

This Regulation should not affect other Community
measures which contribute to combating VAT fraud.

2.
This Regulation shall not affect the application in the
Member States of the rules on mutual assistance in criminal
matters.

(16)

(17)

(18)

For the purposes of this Regulation, it is appropriate to
consider limitations of certain rights and obligations laid
down by Directive 95/46/EC of the European Parliament
and of the Council of 24 October 1995 on the protec-
individuals with regard to the processing of
tion of
personal data and on the free movement of such data (1)
in order to safeguard the interests referred to in Article
13(1)(e) of that Directive.

The measures necessary for the implementation of this
Regulation should be adopted in accordance with
Council Decision 1999/468/EC of 28 June 1999 laying
down the procedures for the exercise of implementing
powers conferred on the Commission (2).

This Regulation respects the fundamental rights and
observes the principles which are recognised in parti-
cular by the Charter of Fundamental Rights of
the
European Union,

Article 2

For the purposes of this Regulation:

1.

‘competent authority of a Member State’, means:

— in Belgium:

Le ministre des finances

De Minister van financiën,

— in Denmark:

Skatteministeren,

— in Germany:

Bundesministerium der Finanzen,

— in Greece:

Yπουργειο Oικονοµίας και Οικονοµικων,

— in Spain:

El Secretario de Estado de Hacienda,

(1) OJ L 281, 23.11.1995, p. 31.
(2) OJ L 184, 17.7.1999, p. 23.

(3) OJ L 128, 15.5.2002, p. 41.

15.10.2003

EN

Official Journal of the European Union

L 264/3

— in France:

le ministre de l'économie, des finances et de l'industrie,

— in Ireland:

The Revenue Commissioners,

— in Italy:

il Capo del Dipartimento delle Politiche Fiscali,

— in Luxembourg:

L'Administration de l'Enregistrement et des Domaines,

— in the Netherlands:

De minister van Financiën,

— in Austria:

Bundesminister für Finanzen,

— in Portugal:

O Ministro das Finanças,

— in Finland:

Valtiovarainministeriö

Finansministeriet,

— in Sweden:

Chefen för Finansdepartementet,

— in the United Kingdom:

The Commissioners of Customs and Excise;

2.

3.

4.

5.

6.

liaison office’, means the office which has been
‘central
designated under Article 3(2) with principal responsibility
for contacts with other Member States in the field of
administrative cooperation;

than the
‘liaison department’, means any office other
central liaison office with a specific territorial competence
or a specialised operational responsibility which has been
designated by the competent authority pursuant to Article
3(3) to exchange directly information on the basis of this
Regulation;

‘competent official’, means any official who can directly
exchange information on the basis of this Regulation for
which he has been authorised pursuant to Article 3(4);

‘requesting authority’, means the central
liaison office, a
liaison department or any competent official of a Member
State who makes a request for assistance on behalf of the
competent authority;

‘requested authority’, means the central
liaison office, a
liaison department or any competent official of a Member
State who receives a request for assistance on behalf of the
competent authority;

7.

‘intra-Community transactions’, means the intra-Commu-
nity supply of goods or services;

8.

‘intra-Community supply of goods’, means any supply of
goods which must be declared in the recapitulative state-
ment provided for in Article 22(6)(b) of Directive 77/388/
EEC;

9.

‘intra-Community supply of services’, means any supply of
services covered by Article 28b(C), (D), (E) and (F) of Direc-
tive 77/388/EEC;

10.

‘intra-Community acquisition of goods’, means acquisition
of the right to dispose as owner of movable tangible prop-
erty under Article 28a(3) of Directive 77/388/EEC;

11.

‘VAT identification number’, means the number provided
for in Article 22(1)(c), (d) and (e) of Directive 77/388/EEC;

12.

‘administrative enquiry’, means all the controls, checks and
other action taken by Member States in the performance
of their duties with a view to ensuring proper application
of VAT legislation;

13.

‘automatic exchange’, means the systematic communica-
tion of predefined information to another Member State,
without prior request, at pre-established regular intervals;

14.

‘structured automatic exchange’, means
the systematic
communication of predefined information to another
Member State, without prior request, as and when that
information becomes available;

15.

‘spontaneous exchange’, means the irregular communica-
information to another
tion without prior
Member State;

request of

16.

‘person’, means:

(a) a natural person;

(b) a legal person; or

(c) where the legislation in force so provides, an associa-
tion of persons recognised as having the capacity to
perform legal acts but lacking the legal status of a legal
person;

17.

‘to grant access’, means to authorise access to the relevant
electronic database and to obtain data by electronic means;

18.

‘by electronic means’, means using electronic equipment
for the processing (including digital compression) and
storage of data, and employing wires, radio transmission,
optical technologies or other electromagnetic means;

19.

‘CCN/CSI network’, means the common platform based on
the common communication network (CCN) and common
system interface (CSI), developed by the Community to
transmissions by electronic means between
ensure all
competent authorities in the area of customs and taxation.

L 264/4

EN

Official Journal of the European Union

15.10.2003

Article 3

1.
The competent authorities referred to in point 1 of
Article 2 are the authorities in whose name this Regulation is
to be applied, whether directly or by delegation.

2.
Each Member State shall designate a single central liaison
office to which principal responsibility shall be delegated for
contacts with other Member States in the field of administrative
cooperation.
inform the Commission and the other
Member States thereof.

It shall

The competent authority of each Member State may
3.
designate liaison departments. The central liaison office shall be
responsible for keeping the list of those departments up to date
and making it available to the central
liaison offices of the
other Member States concerned.

4.
The competent authority of each Member State may in
addition designate, under the conditions laid down by it,
competent officials who can directly exchange information on
the basis of this Regulation. When it does so, it may limit the
scope of such designation. The central liaison office shall be
responsible for keeping the list of those officials up to date and
making it available to the central liaison offices of the other
Member States concerned.

5.
The officials exchanging information under Articles 11
and 13 shall in any case be deemed to be competent officials
for this purpose, in accordance with conditions laid down by
the competent authorities.

6. Where a liaison department or a competent official sends
or receives a request or a reply to a request for assistance, it
shall inform the central liaison office of its Member State under
the conditions laid down by the latter.

7. Where a liaison department or a competent official
receives a request for assistance requiring action outside its
territorial or operational area,
it shall forward such request
without delay to the central liaison office of its Member State
and inform the requesting authority thereof. In such a case, the
period laid down in Article 8 shall start the day after the
request for assistance has been forwarded to the central liaison
office.

of the administrative cooperation provided for in this Regula-
tion. Any such communication must have the prior authorisa-
tion of the judicial authority if the necessity of such authorisa-
tion derives from national law.

CHAPTER II

EXCHANGE OF INFORMATION ON REQUEST

Se c ti on 1

Request for information and for administrative enquiries

Article 5

1.
At the request of the requesting authority, the requested
authority shall communicate the information referred to in
Article 1, including any information relating to a specific case
or cases.

2.
For the purpose of forwarding the information referred to
in paragraph 1, the requested authority shall arrange for the
conduct of any administrative enquiries necessary to obtain
such information.

3.
The request referred to in paragraph 1 may contain a
reasoned request for a specific administrative enquiry. If the
Member State takes the view that no administrative enquiry is
necessary, it shall immediately inform the requesting authority
of the reasons thereof.

4.
In order to obtain the information sought or to conduct
the administrative enquiry requested, the requested authority or
the administrative authority to which it has recourse shall
proceed as though acting on its own account or at the request
of another authority in its own Member State.

Article 6

for

Requests
information and for administrative enquiries
pursuant to Article 5 shall, as far as possible, be sent using a
standard form adopted in accordance with the procedure
referred to in Article 44(2).

Article 4

Article 7

1.
The obligation to give assistance as provided for in this
Regulation shall not cover the provision of information or
documents obtained by the administrative authorities referred
to in Article 1 acting with the authorisation or at the request of
the judicial authority.

1.
At the request of the requesting authority, the requested
authority shall communicate to it any pertinent information it
obtains or has in its possession as well as the results of admin-
istrative enquiries, in the form of reports, statements and any
other documents, or certified true copies or extracts thereof.

2.
However, where a competent authority has the powers in
accordance with national law to communicate the information
referred to in paragraph 1, it may be communicated as a part

2.
Original documents shall be provided only where this is
not contrary to the provisions in force in the Member State in
which the requested authority is established.

15.10.2003

EN

Official Journal of the European Union

L 264/5

S e c ti on 2

Time limit for providing information

Article 8

The requested authority shall provide the information referred
to in Articles 5 and 7 as quickly as possible and no later than
three months following the date of receipt of the request.

However, where the requested authority is already in posses-
sion of that information, the time limit shall be reduced to a
maximum period of one month.

The officials of

the requesting authority present

in
3.
another Member State in accordance with paragraphs 1 and 2
must at all times be able to produce written authority stating
their identity and their official capacity.

Se c ti on 4

Simultaneous controls

Article 12

Article 9

In certain special categories of cases, time limits different from
the ones provided for in Article 8 may be agreed between the
requested and the requesting authorities.

With a view to exchanging the information referred to in
Article 1, two or more Member States may agree to conduct
simultaneous controls, in their own territory, of the tax situa-
tion of one or more taxable persons who are of common or
complementary interest, whenever such controls would appear
to be more effective than controls carried out by only one
Member State.

Article 10

Article 13

Where the requested authority is unable to respond to the
request by the deadline, it shall inform the requesting authority
in writing forthwith of the reasons for its failure to do so, and
when it considers it would be likely to be able to respond.

S e c ti on 3

Presence in administrative offices and participation in
administrative enquiries

Article 11

1.
By agreement between the requesting authority and the
requested authority and in accordance with the arrangements
laid down by the latter, officials authorised by the requesting
authority may, with a view to exchanging the information
referred to in Article 1, be present in the offices where the
administrative authorities of the Member State in which the
requested authority is established carry out their duties. Where
the requested information is contained in documentation to
which the officials of the requested authority have access, the
officials of the requesting authority shall be given copies of the
documentation containing the requested information.

2.
By agreement between the requesting authority and the
requested authority, and in accordance with the arrangements
laid down by the latter, officials designated by the requesting
authority may, with a view to exchanging the information
referred to in Article 1, be present during the administrative
enquiries. Administrative enquiries shall be carried out exclu-
sively by the officials of the requested authority. The requesting
authority's officials shall not exercise the powers of inspection
conferred on officials of the requested authority. They may,
however, have access to the same premises and documents as
the latter, through their intermediary and for the sole purpose
of the administrative enquiry being carried out.

1.
A Member State shall identify independently the taxable
persons whom it intends to propose for a simultaneous control.
The competent authority of that Member State shall notify the
competent authority in the other Member States concerned of
It shall give
the cases proposed for simultaneous controls.
reasons for its choice, as far as possible, by providing the infor-
mation which led to its decision. It shall specify the period of
time during which such controls should be conducted.

2.
The Member States concerned shall then decide whether
they wish to take part in the simultaneous controls. On receipt
of a proposal
the competent
for a simultaneous control,
authority of the Member State shall confirm its agreement or
communicate its reasoned refusal to its counterpart authority.

Each competent

3.
States
authority of
concerned shall appoint a representative to be responsible for
supervising and coordinating the control operation.

the Member

CHAPTER III

REQUEST FOR ADMINISTRATIVE NOTIFICATION

Article 14

The requested authority shall, at the request of the requesting
authority and in accordance with the rules governing the notifi-
cation of similar instruments in the Member State in which it is
established, notify the addressee of all instruments and deci-
sions which emanate from the administrative authorities and
concern the application of VAT legislation in the territory of
the Member State in which the requesting authority is estab-
lished.

L 264/6

EN

Official Journal of the European Union

15.10.2003

Article 15

Article 20

Requests for notification, mentioning the subject of the instru-
ment or decision to be notified, shall indicate the name, address
identifying the
and any other
addressee.

information for

relevant

Member States shall take the necessary administrative and orga-
nisational measures to facilitate the exchanges provided for in
this Chapter.

Article 16

Article 21

The requested authority shall inform the requesting authority
immediately of its response to the request for notification and
notify it, in particular, of the date of notification of the decision
or instrument to the addressee.

A Member State cannot be obliged, for the purposes of imple-
menting the provisions of this Chapter, to impose new obliga-
tions on persons liable for VAT with a view to collecting infor-
mation nor to bear disproportionate administrative burdens.

CHAPTER IV

CHAPTER V

EXCHANGE OF INFORMATION WITHOUT PRIOR REQUEST

STORAGE AND EXCHANGE OF INFORMATION SPECIFIC TO
INTRA-COMMUNITY TRANSACTIONS

Article 17

Article 22

Without prejudice to the provisions of Chapters V and VI, the
competent authority of each Member State shall, by automatic
forward the information
or structured automatic exchange,
referred to in Article 1 to the competent authority of any other
Member State concerned, in the following cases:

1. where taxation is deemed to take place in the Member State
of destination and the effectiveness of the control system
necessarily depends on the information provided by the
Member State of origin;

2. where a Member State has grounds to believe that a breach
of VAT legislation has been committed or is likely to have
been committed in the other Member State;

3. where there is a risk of tax loss in the other Member State.

Article 18

The following shall be determined in accordance with the
procedure referred to in Article 44(2):

1. the exact categories of information to be exchanged;

2. the frequency of the exchanges;

3. the practical arrangements for the exchange of information.

Each Member State shall determine whether it will take part in
the exchange of a particular category of information, as well as
whether it will do so in an automatic or structured automatic
way.

Article 19

1.
Each Member State shall maintain an electronic database
in which it shall store and process the information that it
collects in accordance with Article 22(6)(b) in the version given
in Article 28h of Directive 77/388/EEC.

To enable that
information to be used in the procedures
provided for in this Regulation, the information shall be stored
for at least five years from the end of the calendar year in
which access to the information is to be granted.

2. Member States shall ensure that their databases are kept
up to date, and are complete and accurate.

Criteria shall be defined,
in accordance with the procedure
referred to in Article 44(2), to determine which changes are
not pertinent, essential or useful and therefore need not be
made.

Article 23

On the basis of the data stored in accordance with Article 22,
the competent authority of a Member State shall have commu-
nicated to it automatically and without delay by any other
Member State the following information, to which it may also
have direct access:

1. VAT identification numbers issued by the Member State

receiving the information;

2. the total value of all intra-Community supplies of goods to
persons holding a VAT identification number by all opera-
tors identified for the purposes of VAT in the Member State
providing the information.

The competent authorities of the Member States may, in any
forward to each other, any
case by spontaneous exchange,
information referred to in Article 1 of which they are aware.

The values referred to in point 2 shall be expressed in the
currency of the Member State providing the information and
shall relate to calendar quarters.

15.10.2003

EN

Official Journal of the European Union

L 264/7

Article 24

On the basis of the data stored in accordance with Article 22
and solely in order to prevent a breach of VAT legislation, the
competent authority of a Member State shall, wherever it
considers it necessary for the control of
intra-Community
acquisitions of goods, obtain directly and without delay, or
have direct access to by electronic means, any of the following
information:

1. the VAT identification numbers of the persons who effected

the supplies referred to in point 2 of Article 23; and

2. the total value of such supplies from each such person to
each person holding a VAT identification number referred
to in point 1 of Article 23.

The values referred to in point 2 shall be expressed in the
currency of the Member State providing the information and
shall relate to calendar quarters.

Article 25

1. Where the competent authority of a Member State is
obliged to grant access to information under Articles 23 and
24, it shall do so as soon as possible and within three months
at the latest of the end of the calendar quarter to which the
information relates.

2.
By way of derogation from paragraph 1, where informa-
tion is added to a database in the circumstances provided for in
Article 22, access to such additional
information shall be
granted as quickly as possible and no later than three months
from the end of the quarter in which it was collected.

3.
The conditions under which access to the corrected infor-
mation may be granted shall be laid down in accordance with
the procedure referred to in Article 44(2).

the VAT identification number under which a
validity of
person has effected or received an intra-Community supply of
goods or services.

On specific request, the requested authority shall also commu-
nicate the date of issue and, where appropriate, the expiry date
of the VAT identification number.

On request, the competent authority shall also provide
3.
without delay the name and address of the person to whom
the number has been issued, provided that such information is
not stored by the requesting authority with a view to possible
use at some future time.

4.
The competent authorities of each Member State shall
ensure that persons involved in the intra-Community supply of
goods or of services and, for the period provided for in Article
4 of Directive 2002/38/EC, persons supplying services referred
to in the last indent of Article 9(2)e of Directive 77/388/EEC
are allowed to obtain confirmation of the validity of the VAT
identification number of any specified person.

For the period provided for in Article 4 of Directive 2002/38/
EC Member States shall, in particular, provide such confirma-
tion by electronic means in accordance with the procedure
referred to in Article 44(2).

5. Where, for the purposes of paragraphs 1 to 4, the compe-
tent authorities of the Member States store information in elec-
tronic databases and exchange such information by electronic
means, they shall take all measures necessary to ensure compli-
ance with Article 41.

CHAPTER VI

PROVISIONS CONCERNING THE

SPECIAL

SCHEME

IN

ARTICLE 26C OF DIRECTIVE 77/388/EEC

Article 26

Article 28

Where, for the purposes of Articles 22 to 25, the competent
authorities of the Member States store information in electronic
databases and exchange such information by electronic means,
they shall take all measures necessary to ensure compliance
with Article 41.

The following provisions shall apply concerning the special
scheme provided for in Article 26c in Directive 77/388/EEC.
The definitions contained in point A of that Article shall also
apply for the purpose of this Chapter.

Article 27

Article 29

1.
Each Member State shall maintain an electronic database
containing a register of persons to whom VAT identification
numbers have been issued in that Member State.

2.
At any time the competent authority of a Member State
may obtain directly or have communicated to it, from the data
the
stored in accordance with Article 22, confirmation of

The information from the non-established taxable person
1.
identification when his activities
to the Member State of
commence set out
in the second subparagraph of Article
26c(B)(2) of Directive 77/388/EEC is to be submitted in an
electronic manner. The technical details, including a common
electronic message, shall be determined in accordance with the
procedure provided for in Article 44(2).

L 264/8

EN

Official Journal of the European Union

15.10.2003

The Member State of identification shall transmit this
2.
information by electronic means to the competent authorities
of the other Member States within 10 days from the end of the
month during which the information was received from the
non-established taxable person. In the same manner the compe-
tent authorities of the other Member States shall be informed
of the allocated identification number. The technical details,
including a common electronic message, by which this infor-
mation is to be transmitted, shall be determined in accordance
with the procedure provided for in Article 44(2).

3.
The Member State of identification shall without delay
inform by electronic means the competent authorities of the
other Members States if a non-established taxable person is
excluded from the identification register.

payments in a national currency other than euro, shall convert
the amounts into euro using the exchange rate valid for the last
date of
the reporting period. The exchange shall be done
following the exchange rates published by the European Central
Bank for that day, or, if there is no publication on that day, on
the next day of publication. The transfer shall take place at the
latest 10 days after the end of the month that the payment was
received.

If the non-established taxable person does not pay the total tax
due, the Member State of identification shall ensure that the
payment is transferred to the Member States of consumption in
proportion to the tax due in each Member State. The Member
State of identification shall
inform by electronic means the
competent authorities of the Member States of consumption
thereof.

Article 30

Article 33

The return with the details set out in the second subparagraph
of Article 26c(B)(5) of Directive 77/388/EEC is to be submitted
including a
in an electronic manner. The technical details,
common electronic message, shall be determined in accordance
with the procedure provided for in Article 44(2).

Member States shall notify by electronic means the competent
authorities of the other Member States of the relevant bank
account numbers for receiving payments according to Article
32.

The Member State of identification shall transmit this informa-
tion by electronic means to the competent authority of the
Member State concerned at the latest 10 days after the end of
the month that the return was received. Member States which
have required the tax return to be made in a national currency
other than euro, shall convert the amounts into euro using the
exchange rate valid for the last date of the reporting period.
The exchange shall be done following the exchange rates
published by the European Central Bank for that day, or,
if
there is no publication on that day, on the next day of publica-
tion. The technical details by which this information is to be
transmitted shall be determined in accordance with the proce-
dure provided for in Article 44(2).

The Member State of identification shall transmit by electronic
means to the Member State of consumption the information
needed to link each payment with a relevant quarterly tax
return.

Article 31

The provisions in Article 22 shall apply also to information
collected by the Member State of identification in accordance
with Article 26c(B)(2) and (5) of Directive 77/388/EEC.

Article 32

Member States shall without delay notify by electronic means
the competent authorities of the other Member States and the
Commission of changes in the standard tax rate.

Article 34

Articles 28 to 33 shall apply for a period provided for in
Article 4 of Directive 2002/38/EC.

CHAPTER VII

RELATIONS WITH THE COMMISSION

Article 35

1.
The Member States and the Commission shall examine
and evaluate how the arrangements for administrative coopera-
tion provided for in this Regulation are working. The Commis-
sion shall pool the Member States' experience with the aim of
improving the operation of those arrangements.

2.
The Member States shall communicate to the Commis-
sion any available information relevant to their application of
this Regulation.

identification shall ensure that

The Member State of
the
amount the non-established taxable person has paid is trans-
ferred to the bank account denominated in euro, which has
been designated by the Member State of consumption to which
is due. Member States which required the
the payment

3.
A list of statistical data needed for evaluation of this
Regulation shall be determined in accordance with the proce-
dure referred to in Article 44(2). The Member States shall
communicate these data to the Commission in so far as they
are available and the communication is not likely to involve
administrative burdens which would be unjustified.

15.10.2003

EN

Official Journal of the European Union

L 264/9

4. With a view to evaluating the effectiveness of this system
of administrative cooperation in combating tax evasion and tax
avoidance, Member States may communicate to the Commis-
sion any other information referred to in Article 1.

5.
The Commission shall forward the information referred
to in paragraphs 2, 3 and 4 to the other Member States
concerned.

CHAPTER VIII

RELATIONS WITH THIRD COUNTRIES

Article 39

For the period provided for in Article 4 of Directive 2002/38/
EC, the Commission and the Member States shall ensure that
such existing or new communication and information
exchange systems which are necessary to provide for the
exchanges of information described in Articles 29 and 30 are
operational. The Commission will be responsible for whatever
development of
common communication network/
common system interface (CCN/CSI) is necessary to permit the
exchange of this information between Member States. Member
States will be responsible for whatever development of their
systems
information to be
exchanged using the CCN/CSI.

is necessary to permit

this

the

Article 36

Member States shall waive all claims for the reimbursement of
expenses incurred in applying this Regulation except, where
appropriate, in respect of fees paid to experts.

1. When the competent authority of a Member State
receives information from a third country, that authority may
pass the information on to the competent authorities of
in any
Member States which might be interested in it and,
event, to all those which request it, in so far as permitted by
assistance arrangements with that particular third country.

Provided the third country concerned has given an under-
2.
taking to provide the assistance required to gather evidence of
the irregular nature of transactions which appear to contravene
VAT legislation,
information obtained under this Regulation
may be communicated to that third country, with the consent
of the competent authorities which supplied the information,
in accordance with their domestic provisions applying to the
communication of personal data to third countries.

CHAPTER IX

CONDITIONS

GOVERNING

THE
INFORMATION

EXCHANGE

OF

Article 37

Information communicated pursuant to this Regulation shall,
as far as possible, be provided by electronic means under
arrangements to be adopted in accordance with the procedure
referred to in Article 44(2).

Article 38

Requests for assistance, including requests for notification, and
attached documents may be made in any language agreed
between the requested and requesting authority. The said
requests shall only be accompanied by a translation into the
official language or one of the official languages of the Member
State in which the requested authority is established, in special
cases when the requested authority gives a reason for asking
for such a translation.

Article 40

1.
The requested authority in one Member State shall
provide a requesting authority in another Member State with
the information referred to in Article 1 provided that:

(a) the number and the nature of the requests for information
made by the requesting authority within a specific period
do not impose a disproportionate administrative burden on
that requested authority;

(b) that requesting authority has exhausted the usual sources of
information which it could have used in the circumstances
to obtain the information requested, without running the
risk of jeopardising the achievement of the desired end.

2.
This Regulation shall impose no obligation to have enqui-
ries carried out or to provide information if the laws or admin-
istrative practices of the Member State which would have to
supply the information do not authorise the Member State to
carry out those enquiries or collect or use that information for
that Member State's own purposes.

3.
The competent authority of a Member State may refuse
to provide information where the Member State concerned is
unable, for legal reasons, to provide similar information. The
Commission shall be informed of the grounds of the refusal by
the requested Member State.

The provision of information may be refused where it
4.
industrial or
would lead to the disclosure of a commercial,
professional secret or of a commercial process, or of informa-
tion whose disclosure would be contrary to public policy.

The requested authority shall

5.
authority of the grounds for refusing a request for assistance.

inform the requesting

6.
A minimum threshold triggering a request for assistance
may be adopted in accordance with the procedure referred to
in Article 44(2).

L 264/10

EN

Official Journal of the European Union

15.10.2003

Article 41

Article 42

1.
Information communicated in any form pursuant to this
Regulation shall be covered by the obligation of official secrecy
and enjoy the protection extended to similar information under
both the national law of the Member State which received it
and the corresponding provisions applicable to Community
authorities.

Reports, statements and any other documents, or certified true
copies or extracts thereof, obtained by the staff of the requested
authority and communicated to the requesting authority under
the assistance provided for by this Regulation may be invoked
as evidence by the competent bodies of the Member State of
the requesting authority on the same basis as similar docu-
ments provided by another authority of that country.

Such information may be used for the purpose of establishing
the assessment base or the collection or administrative control
of tax for the purpose of establishing the assessment base.

The information may also be used for the assessment of other
levies, duties, and taxes covered by Article 2 of Council Direc-
tive 76/308/EEC of 15 March 1976 on mutual assistance for
the recovery of claims relating to certain levies, duties, taxes
and other measures (1).

In addition, it may be used in connection with judicial proceed-
ings that may involve penalties, initiated as a result of infringe-
ments of tax law without prejudice to the general rules and
legal provisions governing the rights of defendants and
witnesses in such proceedings.

2.
Persons duly accredited by the Security Accreditation
Authority of the European Commission may have access to this
information only in so far as it is necessary for care, mainte-
nance and development of the CCN/CSI network.

3.
By way of derogation from paragraph 1, the competent
authority of the Member State providing the information shall
permit its use for other purposes in the Member State of the
requesting authority,
if, under the legislation of the Member
State of the requested authority, the information can be used
for similar purposes.

4. Where the requesting authority considers that informa-
tion it has received from the requested authority is likely to be
useful to the competent authority of a third Member State, it
inform the
may transmit it to the latter authority.
requested authority thereof in advance. The requested authority
may require that the transmission of the information to a third
party be subject to its prior agreement.

It shall

Article 43

For the purpose of applying this Regulation, Member

1.
States shall take all necessary measures to:

(a) ensure effective internal coordination between the compe-

tent authorities referred to in Article 3;

(b) establish direct

cooperation between the

authorities

authorised for the purposes of such coordination;

(c) ensure the smooth operation of the information exchange

arrangements provided for in this Regulation.

2.
The Commission shall communicate to each Member
State, as quickly as possible, any information which it receives
and which it is able to provide.

CHAPTER X

GENERAL AND FINAL PROVISIONS

Article 44

1.
The Commission shall be assisted by the Standing
Committee on Administrative Cooperation, (hereinafter referred
to as the Committee).

2. Where reference is made to this paragraph, Articles 5 and
7 of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

The period laid down in Article 5(6) of Decision 1999/468/EC
shall be set at three months.

3.

The Committee shall adopt its rules of procedure.

Article 45

5. Member States shall, for the purpose of the correct appli-
cation of this Regulation, restrict the scope of the obligations
and rights provided for in Article 10, Article 11(1), Articles 12
and 21 of Directive 95/46/EC to the extent required in order to
safeguard the interests referred to in Article 13(e) of that Direc-
tive.

(1) OJ L 73, 19.3.1976, p. 18. Directive as last amended by Directive

2001/44/EC (OJ L 175, 28.6.2001, p. 17).

Every three years from the date of entry into force of this
1.
Regulation,
to the European
Parliament and the Council on the application of this Regula-
tion.

the Commission shall report

2. Member States shall communicate to the Commission the
text of any provisions of national law, which they adopt in the
field covered by this Regulation.

15.10.2003

EN

Official Journal of the European Union

L 264/11

Article 46

Article 47

1.
The provisions of this Regulation shall be without preju-
dice to the fulfilment of any wider obligations in relation to
mutual assistance ensuing from other legal acts, including bilat-
eral or multilateral agreements.

2. Where the Member States conclude bilateral arrangements
on matters covered by this Regulation other than to deal with
individual cases, they shall
inform the Commission without
delay. The Commission shall in turn inform the other Member
States.

Regulation (EEC) No 218/92 is hereby repealed.

References made to the repealed Regulation shall be construed
as references to this Regulation.

Article 48

This Regulation shall enter into force on 1 January 2004.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Luxembourg, 7 October 2003.

For the Council

The President

G. TREMONTI