2004/856/: 2004/856/EC:#Council Decision of 7 December 2004 amending Decision 2000/746/EC authorising the French Republic to apply a measure derogating from Article 11 of the sixth Council Directive (77/388/EEC) on the harmonisation of the laws of the Member States relating to turnover taxes
Date: 2004-12-07
Institutions: Council of the European Union
Subjects: France, VAT, derogation from EU law, gold, jewellery and goldsmith's articles, tax harmonisation

16.12.2004

EN

Official Journal of the European Union

L 369/63

COUNCIL DECISION

of 7 December 2004

amending Decision 2000/746/EC authorising the French Republic to apply a measure derogating
from Article 11 of the sixth Council Directive (77/388/EEC) on the harmonisation of the laws of the
Member States relating to turnover taxes

(2004/856/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community,

establishing the European

Having regard to 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 assessment (1), and in particular
Article 27(1) thereof,

Having regard to the proposal from the Commission,

Whereas:

(4)

(5)

(6)

(7)

27(2)

accordance with Article

of Directive
In
77/388/EEC,
the Commission informed the other
Member States by letter dated 10 August 2004 of the
request made by the French Republic and notified the
the information it
French Republic that
considered necessary for appraisal of the request.

it had all

the derogation
According to the French authorities,
authorised by Decision 2000/746/EC has been effective
in achieving the aims stated above.

The derogations pursuant
to Article 27 of Directive
77/388/EEC which counter VAT avoidance linked to
the exemption for investment gold may be included in
a future proposal for a directive rationalising some of the
derogations pursuant to that Article.

It is therefore necessary to extend the validity of the
derogation granted under Decision 2000/746/EC until
the entry into force of a directive rationalising the dero-
gations pursuant to Article 27 of Directive 77/388/EEC
which covers the avoidance of value added tax linked to
the exemption for investment gold or until 31 December
2009, whichever is the earlier.

By Decision 2000/746/EC (2), the Council authorised the
French Republic, by way of derogation from Article
11(A)(1)(a) of Directive 77/388/EEC, to include in the
taxable amount of a supply of goods or a supply of
services the value of any gold used by the supplier and
provided by the recipient in cases where the supply of
the gold to the recipient is exempt in accordance with
Article 26b of Directive 77/388/EEC.

(8)

The derogation will have no negative impact on the
European Communities' own resources provided from
VAT,

HAS ADOPTED THIS DECISION:

The aim of that derogation was to avoid abuse of the
exemption for
investment gold and thus to prevent
certain types of tax evasion or avoidance.

Article 1

Article 2 of Decision 2000/746/EC shall be replaced by the
following:

By letter registered with the Secretariat-General of the
Commission on 6 July 2004, the French Government
requested an extension of Decision 2000/746/EC,
which expires on 31 December 2004.

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

2004/66/EC (OJ L 168, 1.5.2004, p. 35).

(2) OJ L 302, 1.12.2000, p. 61.

‘Article 2

The authorisation granted under Article 1 shall expire on
the date of entry into force of a directive rationalising the
derogations pursuant to Article 27 of Directive 77/388/EEC
which counter avoidance of value added tax linked to the
exemption for investment gold or on 31 December 2009,
whichever is the earlier.’

(1)

(2)

(3)

L 369/64

EN

Official Journal of the European Union

16.12.2004

This Decision is addressed to the French Republic.

Article 2

Done at Brussels, 7 December 2004.

For the Council
The President

G. ZALM