TAXABLE PERSON , THE GOODS REMAIN BURDENED WITH AN AMOUNT OF VAT PROPORTIONAL TO THE PRICE PAID BY THAT CONSUMER TO HIS SUPPLIER .
13 IF THE CONSUMER SUBSEQUENTLY SUPPLIES THE GOODS TO ANOTHER NON-TAXABLE CONSUMER , NO TAX IS CHARGED OR DEDUCTED IN RESPECT OF THAT TRANSACTION . IF THE CONSUMER SUPPLIES THE GOODS TO A TAXABLE TRADER , SUCH SUPPLY DOES NOT GIVE RISE TO A CHARGE TO TAX EITHER , BUT WHERE THE GOODS ARE RESOLD BY THE TAXABLE PERSON AN AMOUNT OF VAT PROPORTIONAL TO THE RESALE PRICE IS CHARGED , WITHOUT THE TAXABLE PERSON BEING ENTITLED TO ANY DEDUCTION OF THE VAT WHICH THE GOODS HAVE ALREADY BORNE .
14 SECOND-HAND GOODS WHICH ARE REINTRODUCED INTO COMMERCIAL CIRCULATION ARE THEREFORE TAXED ONCE AGAIN , WHEREAS SECOND-HAND GOODS WHICH PASS DIRECTLY FROM ONE CONSUMER TO ANOTHER REMAIN BURDENED SOLELY BY THE TAX IMPOSED ON THE OCCASION OF THE FIRST SALE TO A NON-TAXABLE CONSUMER . ESPECIALLY WHERE THE RATE OF VAT IS HIGH , THAT DIFFERENCE IN TREATMENT DISTORTS COMPETITION BETWEEN DIRECT SALES FROM ONE CONSUMER TO ANOTHER AND TRANSACTIONS PASSING THROUGH ORDINARY COMMERCIAL CHANNELS , AND THUS PLACES AT A DISADVANTAGE BRANCHES OF TRADE IN WHICH A LARGE NUMBER OF TRANSACTIONS INVOLVE SECOND-HAND GOODS , SUCH AS THE MOTOR-CAR TRADE IN PARTICULAR .
15 ARTICLE 32 OF THE SIXTH DIRECTIVE PROVIDES THAT THE COUNCIL WILL AT A LATER STAGE ADOPT A COMMON SYSTEM TO PREVENT SUCH DISTORTION IN COMPETITION AND , PENDING THE IMPLEMENTATION OF SUCH A COMMON SYSTEM , AUTHORIZES THE RETENTION OF EXISTING NATIONAL SYSTEMS HAVING THE SAME OBJECTIVE .
16 FOR ITS PART , THE COMMISSION HAS ACTED UPON ARTICLE 32 OF THE SIXTH DIRECTIVE BY SUBMITTING TO THE COUNCIL ITS PROPOSAL FOR A SEVENTH DIRECTIVE WHICH SETS OUT TWO METHODS OF ACHIEVING THE DESIRED RESULT . AS REGARDS SECOND-HAND GOODS IN GENERAL , THE PROPOSAL PROVIDES THAT , IN THE CASE OF THE SUPPLY EFFECTED BY A TAXABLE PERSON WISHING TO RESELL GOODS WHICH HE ACQUIRED FROM A NON-TAXABLE PERSON , THE TAXABLE AMOUNT IS TO BE A FIXED PROPORTION OF THE RESALE PRICE WHICH IS DEEMED TO CORRESPOND TO THE VALUE ADDED BY THE TAXABLE PERSON WISHING TO RESELL . IN RELATION TO CERTAIN SECOND-HAND GOODS WHICH PLAY AN IMPORTANT PART IN TRADE , IN PARTICULAR MOTOR CARS , THE PROPOSAL PUTS FORWARD A SCHEME WHICH IS MORE SPECIFIC AS TO THE RESULTS TO BE ACHIEVED . UNDER THAT SYSTEM , WHEN A TAXABLE PERSON RESELLS SUCH GOODS HE IS ENTITLED TO DEDUCT AN AMOUNT OF VAT CALCULATED ON THE BASIS OF THE PRICE AT WHICH THE GOODS WERE ACQUIRED FROM A NON-TAXABLE PERSON . THE TWO SCHEMES PROPOSED THUS HAVE ONE FEATURE IN COMMON , NAMELY THAT IT IS AT THE TIME OF RESALE THAT THE RESIDUAL PART OF THE VAT BORNE BY THE SECOND-HAND GOODS IS TAKEN INTO ACCOUNT .
17 UNDER THE IRISH SYSTEM , ACCOUNT IS TAKEN OF THAT RESIDUAL PART AT AN EARLIER STAGE ,