CELEX: 51984PC0391
Language: en
Date: 1984-07-16
Title: PROPOSAL FOR A TWENTIETH COUNCIL DIRECTIVE ON THE HARMONIZATION OF THE LAWS OF THE MEMBER STATES RELATING TO TURNOVER TAXES - COMMON SYSTEM OF VALUE ADDED TAX: DEROGATIONS IN CONNECTION WITH THE SPECIAL AIDS GRANTED TO CERTAIN FARMERS TO COMPENSATE FOR THE DISMANTLEMENT OF MONETARY COMPENSATORY AMOUNTS APPLYING TO CERTAIN AGRICULTURAL PRODUCTS

No C 214/8                             Official Journal of the European Communities                               14.8.84
               Proposal for a twentieth Council Directive on the harmonization of the laws of the
               Member States relating to turnover taxes — common system of value added tax: dero-
               gations in connection with the special aids granted to certain farmers to compensate for
               the dismantlement of monetary compensatory amounts applying to certain agricultural
                                                            products
                                                      COM(84) 391 final
                                (Submitted by the Commission to the Council on 17 July 1984)
                                                        (84/C 214/08)
THE COUNCIL OF THE EUROPEAN                                        as harmonized by the Sixth Council Directive
COMMUNITIES,                                                        77/388/EEC of 17 May 1977 on the harmonization
                                                                   of the laws of the Member States relating to turnover
Having regard to the Treaty establishing the                       taxes — common system of value added tax: uniform
European Economic Community, and in particular                     basis of assessment (2) and in particular to maintain
Articles 99 and 100 thereof,                                       the basis for making accurate calculations of the VAT
                                                                   own resources due from Member States, it was
Having regard to the proposal from the Commission,                 provided in Article 3 (2) of Regulation (EEC) No
                                                                   855/84 that the payments of such special aids must be
                                                                   mentioned in the invoicing or the VAT declaration
Having regard to the opinion of the European Par-
                                                                   using the VAT as an instrument; whereas such aid
liament,
                                                                   may not exceed the percentage fixed by the aforesaid
                                                                   Council Regulation of the price exclusive of VAT
Having regard to the opinion of the Economic and                   paid by the purchaser for the agricultural product;
Social Committee,
Whereas Council Regulation (EEC) N o 855/84 of 31                  Whereas particular measures must be introduced for
March 1984 on the calculation and dismantlement of                 authorizing the Federal Republic of Germany to
the monetary compensatory amounts applying to                      derogate from certain provisions of Directive
certain agricultural products (') provided for an adap-            77/388/EEC to the extent necessary for carrying into
tation of the representative rates which, in the case of           effect the special aid authorized by Regulation (EEC)
the Federal Republic of Germany, must, when it takes               No 855/84 and by Decision No . . . ;
place on 1 January 1985, entail lower prices when
expressed in national currency and consequently
lower farm         incomes; whereas by way of                      Whereas the granting of such special aid would, in
compensation, the possibility of granting special                  the absence of special authorizing provisions,
national aids to which the Community would                         constitute a departure form the rules set out in
contribute on a temporary and degressive basis was                 Articles 17, 22 and 25 of Directive 77/388/EEC;
provided for;
Whereas by way of compenstion, Article 3 of Council                HAS ADOPTED THIS DIRECTIVE:
Regulation (EEC) No 855/84 authorized the Federal
Republic of Germany to grant a special aid, using
value added tax as an instrument, of an amount not                                         Article 1
exceeding 3 per cent of the price excluding value
                                                                   By way of derogation from the provisions of
added tax paid by the purchaser of the agricultural
                                                                   Directive 77/388/EEC, the Federal Republic of
product;                                                           Germany is authorized to use value added tax in
                                                                   order to grant the special aid permitted in Regulation
Whereas Council Decision No . . . authorized .the
                                                                   (EEC) No 855/84 and Decision No . . .
Federal Republic of Germany to exceed this limit and
to apply a percentage of 5 % for the period between
1 July 1984 and 31 December 1988, and whereas as a
                                                                                           Article 2
result, it is necessary that this Directive shall apply
from 1 July 1984;                                                  1.    Value added tax maybe used as an instrument to
                                                                   grant the aid only within the limit of 3 % authorized
Whereas to avoid any distortion of the uniform basis               in Article 3 of Regualtion (EEC) No 855/84.
of assessment of value added tax in the Community
O O J N o L 9 0 , 1.4. 1984, p. 1.                                 O OJ No L 145, 13. 6. 1977, p. 1.
 ---pagebreak--- 14.8.84                               Official Journal of the European Communities                          No C 214/9
2.     However, in accordance with Decision No . . .,            3.    By way of derogation from Article 22 (4) of
this percentage may be increased up to 5 % until 31              Directive 77/388/EEC a taxable person who
December 1988.                                                   purchases agricultural products from a flat-rate
                                                                 farmer shall mention, in his return, the amount of the
3.     The special aid using value added tax as an               special aid.
instrument may be granted by either of the two
methods mentioned in Article 3 below.                            4.    By way of derogation from Article 22 (5) of
                                                                 Directive 77/388/EEC an agricultural producer who
                          Article 3                              is subject to the normal system of value added tax
                                                                 may be authorized to deduct, from the net amount of
The Federal Republic of Germany may provide that:                the value added tax due to be paid by him when
                                                                 submitting the return, the amount of the special aid.
— a flat-rate farmer, as defined in the third indent of
   - Article 25 (2) of Directive 77/388/EEC, shall be            5.    By way of derogation from Article 25 (3) of
     entitled to add to the amount of his invoice on the         Directive 77/388/EEC the Federal Republic of
     sale of his agricultural products to a taxable              Germany may, in addition to the proper flat-rate
     person a sum not exceeding the percentage, stated           compensation percentages, permitted under that
     in Article 2, of the price exclusive of value added         Article, apply a further percentage corresponding to
     tax mentioned as such in the invoice or other               the amount of the special aid.
     document serving as an invoice;
— an agricultural producer who is a taxable person                                       Article 5
     subject to the normal system of value added tax
                                                                 The Federal Republic of Germany shall take the
     shall be entitled to deduct from the tax which he
                                                                 measures necessary to ensure that the calculation and
     is liable to pay when submitting his return a sum
                                                                 levying of VAT own resources is done by reference to
     not exceeding the percentage, stated in Article 2,
                                                                 the details contained in the VAT returns provided for
     of the selling price exclusive of value added tax of
                                                                 in Article 4 (3) and (4) and shall not be affected by
     his agricultural products for the period concerned.
                                                                 the derogations       from     Directive  77/388/EEC
                                                                 permitted by the present Directive.
                          Article 4
 1.    By way of derogation from Article 17 (2) of                                       Article 6
Directive 77/388/EEC a taxable person who
                                                                 The Federal Republic of Germany shall communicate
purchases agricultural products from a flate-rate
                                                                 to the Commission details of the measures which it
farmer may deduct, from the tax which he is liable to
                                                                 adopts for the implementation of the provisions auth-
pay, the amount of the special aid charged to him by
                                                                 orized by this Directive.
the relevant flat-rate farmer in conformity with this
 Directive and with the provisions of Council Regu-
 lation (EEC) No 855/84 and Decision No . . .                                            Article 7
                                                                 This Directive is applicable with effect from 1 July
 2.     In addition to the details required by Article            1984.
 22 (3) (b) of Directive 77/388/EEC, the invoice of an
 agricultural producer subject to the normal system of                                   Article 8
value added tax, and the invoice in respect of the
 supply effected by a flat-rate farmer, must mention             This Directive is addressed to the Federal Republic of
 the percentage and amount of the special aid.                    Germany.