CELEX: 51992PC0005
Language: en
Date: 1992-01-23
Title: Amendment to the proposal for a COUNCIL DIRECTIVE Supplementing the Common system of Value Added Tax and amending Directive 77/388/EEC ­ Approximation of VAT rates

19 . 2 . 92                            Official Journal of the European Communities                              No C 44 / 21
                                                 COMMISSION
               Amendment to the proposal for a Council Directive supplementing the common system of value
                     added tax and amending Directive 77/388/EEC — Approximation of VAT rates
                                                        (92/C 44 /23)
                                                       COM(92) 5 final
               (Submitted by the Commission pursuant to Article 149 (3) ofthe EEC Treaty on 24 January 1992)
                      ORIGINAL PROPOSAL                                              AMENDED PROPOSAL
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                         THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European            Unchanged
Economic Community, and in particular Article 99
thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European
Parliament,
Having regard to the opinion of the Economic and
Social Committee,
Whereas completing the internal market, which is one of
the fundamental objectives of the Community, requires
that fiscal frontiers be abolished, that is to say that the
system of remission of tax on exportation and the impo­
sition of tax on importation and of frontier controls on
taxable persons as well as on private persons be discon­
tinued ;
Whereas, if distortions are to be avoided, such abolition        Whereas, if distortions are to be avoided, such abolition
implies in the case of value added tax, not only a               implies in the case of value added tax, not only a
uniform tax base but also the same number of rates and           uniform tax base but also harmonization of rates carried
rate levels which are sufficiently close as between              out in such a fashion that cross-border trade does not
Member States ; whereas it is therefore necessary to             take place purely as a result of fiscal disparities ; whereas
amend       Council  Directive 77/ 388 / EEC ('),   as  last     it is therefore necessary to amend Council Directive
amended by the Act of Accession of Spain and Portugal,           77/ 388 /EEC ('), as last amended by the Act of
                                                                 Accession of Spain and Portugal ;
                                                                 Whereas Member States' fiscal requirements are not
                                                                 identical and vary over time, and fiscal harmonization
                                                                 must both guarantee the Member States sufficient
                                                                 revenue and allow them sufficient flexibility in its
                                                                 implementation,
(') OJ No L 145, 13 . 6 . 1977, p. 1 .
 ---pagebreak--- No C 44 / 22                              Official Journal of the European Communities                              19 . 2 . 92
                        ORIGINAL PROPOSAL                                                AMENDED PROPOSAL
HAS ADOPTED THIS DIRECTIVE :                                        HAS ADOPTED THIS DIRECTIVE :
                             Article 1                                                       Article 1
Directive 77/388 /EEC is hereby amended as follows :                Unchanged
 1 . Article 12 (3) and (4) are replaced by the following :
     '3 . Member States shall apply two rates of value
     added tax, namely a standard rate and a reduced rate.
     The reduced rate may not be less than 4 % or more
     than 9 % .
     The standard rate may not be less than 14 % or more
     than 20 % .
     4 . (a) The reduced rate shall be applied to trans­
             actions relating to the following goods and
             services :
             — foodstuffs, excluding alcoholic beverages,
             — energy products for heating and lighting,
             — water supplies,
             — pharmaceutical products ,
             — books , newspapers and periodicals ,
             — passenger transport.
         (b) The standard rate shall be applied to trans­
             actions relating to goods and services other
             than those set out in (a)'.
                                                                         (c) On the basis of a report by the Commission,
                                                                             the Council shall review the abovementioned
                                                                             standard and reduced rates every three years,
                                                                             and acting in accordance with Article 99 of the
                                                                             EEC Treaty may adjust these rates in the light
                                                                             of fiscal requirements'.
2 . Paragraph 2 of Article 28 is hereby deleted.                    Unchanged
                             Article 2                                                       Article 2
1.       Member States shall take the necessary measures to         Unchanged
comply with this Directive not later than 31 December
1992 . They shall forthwith inform the Commission
thereof.
2.       Member     States    shall    communicate     to  the
Commission the texts of all the provisions of national
law which they adopt in the field governed by this
Directive .
                            Article 3                                                        Article 3
This Directive is addressed to the Member States .                  Unchanged