CELEX: 51983PC0779
Language: en
Date: 1983-12-20
Title: Proposal for a COUNCIL DIRECTIVE to prolong the derogation accorded to Ireland relating to the rules governing turnover tax and excise duty applicable to international travel (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 779
Vol. 1983/0272
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM (83) 779 final
                                             Brussels, 20 December 1983
                             Proposal for a
                           COUNCIL DIRECTIVE
      to prolong the derogation accorded to Ireland relating to
          the rules governing turnover tax and excise duty
                  applicable to international travel
             (submitted to the Council by the Commission)
  COM(83) 779 final
 ---pagebreak---                                           EXPLANATORY MEMORANDUM
                C ouncil       D ire c tiv e     78/1 03 2 /E E C       (1)     in c re a se d    the   tax-free
a llo w a n c e   fo r   goods      co n ta in ed       in   the    personal         luggage       of   in tra-C o m m u n ity
tra v e lle rs -fro m        125    to    180    ECU a n d ,      at    the     same     tim e ,   granted        Ire la n d
a d e ro g atio n      u n til    31    December          1983     to   exclude        from     th is   allo w an ce       any
ite m    exceeding         77    ECU i n     v a lu e .     The    Iris h     Government          has   expressed
concern       at    the    eco n o m ic     consequences            w h ic h   w ould      a ris e   if   the     fu ll
a llo w an ce     were     to   be    a p p lie d    f r o m 1 January 1 9 8 4         and    has    requested         a
p ro lo n g a tio n    of    the    d e ro g a tio n .
                At    the    tim e    whe n t h e       d e ro g atio n     was    g ran ted ,     the    m ain     concern
of    the    Iris h    Government           was    th at     an    in crease        in   the    tra v e lle rs '
a llo w a n c e   w ould     create       s p e c ific      problem s       in    respect       of   c e rta in     goods
s u b jec t   to    exc ise      d u tie s   but     fo r    which      no q u a n t i t a t i v e   lim its      had b e en
e n visag ed       (ra d io s ,    te le v is io n s ,      record      p la ye rs     and    s im ila r    equipm ent,
and m otor        v e h ic le    parts      and    a cc e ss o ries ).        The    problem       w h ic h   concerns
the    Iris h     Government          now,     however,          is   th a t    in   a d d itio n    to   the    e xc ise     d u tie s
in   q u e stio n     th ere     is   a   s ig n ific a n t      d iffe re n c e      (35   % as    opposed         to   15   Z)
in    the    VAT    rates      a p p lie d    in   Ire la n d     and     the    UK t o      a w ide    range       of
consumer        goods,       w h ic h   has     led     to   a marked         in c re a s e   in   cross-border
shopping        trip s     by    c itize n s     of     the    R ep u b lic    of    Ire la n d .
                 The    Iris h     Government           fears      th a t   if    the    d e ro g atio n    in    q u e stio n
were     not     to   be   extended         th ere      w o u ld   be   an    in crease       in   the     le v e l  of
cro ss-b o rd er        shopping        w h ic h   w o u ld    have     a n o tic e ab le       e ffe c t   on n a t i o n a l
tax    revenues        and would          create        serio u s     problem s        fo r   trad ers      o p e ratin g
c lo s e   to   the    border.
                The    Commission           acknow ledges           th at    the     problem s      posed       by   cross-
border       trad e    betw een       Ire la n d    and      the    UK a r e     now g r e a t e r    than      in   1979,
la rg e ly    as    a   re s u lt   of    s u b s ta n tia l     in c re a s e s   in    Iris h    VAT and excise cLrty
ra te s d u rin g th e la s t two y e a rs , c id accepts th a t an ending o f th e d e r o g a t i o n                on
3 1 /1 2/1 98 3     w ould    have      u n acc e p ^ jb le      econom ic       and    fis c a l   consequences.
In    these      circum stances           the    Commission           fe e ls    o b lig e d   to   propose         that
the    d e ro g atio n     be   extended         fo r     a  lim ite d     p e rio d    and    the    attach ed        d ra ft
C o u n cil   D ire c tiv e     proposes         a      s ix     m o n th   p ro lo n g a tio n .      It   w 'l      s h o rtly
b rin g    forw ard      p ro p o s a ls    to   cover       the    s itu a tio n      a fte r   30   June      1984.
(1)    0J   No.     L 366,      2 8 .1 2 .1 9 7 8 ,    p.    28
 ---pagebreak---                                     PROPOSAL FOR A COUNCIL D I R E C T I V E
                      p ro lo n g in g     the     d e ro g atio n     accorded        to   Ire la n d
          re la tin g    to    the    ru le s    go vern in g       turnover        tax    and   excise        duty
                                 a p p lic a b le     in    in te rn a tio n a l    tra v e l
  THE COUNCIL OF THE EUROPEAN C O M M U N I T I E S ,
      i
  H aving      regard      to    the    T reaty       e s ta b lis h in g   the     European       Economic           Community,
  and     in  p a rtic u la r      A rtic le s      99    and   100    th e re o f,
  H aving      regard      t o t he p r o p o s a l       from     the   C o m m is sio n,
Whereas        C ouncil      d ire c tiv e      78/1032/E E C             g ranted       Irela n d    a d e ro g atio n ,
 in    respect       of   the    u n it   valu e      of   goods     to   be   im ported       w ith   tax      exem ption,
from      D ire c tiv e    69/169/E E C             ,   as   la s t  amended b y D i r e c t i v e     8 2 / 4 4 3 / E E C 3 ^;
  W hereas      the     Iris h    Government            has    requested       a p ro lo n g a tio n      of     the     above
  d e ro g a tio n ;
  W hereas      the     tax    system       at   present        a p p lie d   in    Ire la n d   does     not yet         a llo w
  fu ll    a p p lic a tio n    of    the     tax     exem ption       g ranted       to   tra v e lle rs      coming       from
  o th e r   M e mb e r S t a t e s   of    the     Community w i t h o u t         the    ris k   of   s erio u s
  econom ic       consequences;
  W hereas,       th e re fo re ,     Ire la n d      s hould     be a u t h o r i z e d   to  c o n tin u e     to    apply
  e x c e p tio n a l   arrangem en ts         fo r     a  fu rth er     lim ite d     p e rio d ,
   HAS ADOPTED T H I S            DIRECTIVE:
    OJ No L 3 6 6 ,        2 8 .1 2 .1 9 7 8 ,   p.    28
2 0J    No L 1 3 3 ,     4 .6 .1 9 6 9 ,   p.    6
3 0J    No L 2 0 6 ,     1 4.7 .1 9 8 2 ,     p.   35
 ---pagebreak---                                                - 2 -
                                           A rtic le     1
               The    second     in d en t   of    paragraph       1 of   A rtic le     5 of    D ire c tiv e
7 8/1 03 2 /E E C   is   '^ereby     re p la c e d   by  the    fo llo w in g :
               Ire la n d  may,     u n til    30   June    1984,     e xclu d e    from    tax   exem ption
               goods     whose u n i t     v alu e    is   in  excess     of    77   ECU.
                                           A rtic le     2
   O ther      Member S t a t e s     s h a ll   ta k e  the   necessary        steps     to   p e rm it   the
re m is s io n   of   tax,    in   accordance         w ith   tie   procedures         re ferred      to   in
A rtic le    6   of   D ire c tiv e   69/1 69 /E E C ,     on  goods     im ported       in to   Ire la n d
which     are    excluded      from     exem p tio n .
                                               A rtic le    3
                    Ireland shall communicate to the Commission details of th<
   measures which it adopts to implement this Directive.
                                           A rtic le     4
               T h is  D ire c tiv e    is   addressed        to   the   M e mb e r   S tates.
 Done at Brussels                                                                For the Council
                                                                                  The President