CELEX: 51987PC0272
Language: en
Date: 1987-06-17
Title: Amendments to the proposal for an EIGHTEENTH COUNCIL DIRECTIVE on the harmonization of the laws of the Member States relating to turnover taxes - Abolition of certain derogations provided for in Article 28(3) of Directive 77/388/EEC - Common system of value added tax (presented by the Commission pursuant to the second paragraph of Article 149 of the EEC Treaty)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 272
Vol. 1987/0166
 ---pagebreak--- Disclaimer
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                        COM(87 > 272 final
                                                        Brussels , 17 June 1987
                        Amendments to the proposai for an
                            EIGHTEENTH COUNCIL DIRECTIVE
     on the harmonization of the laws of the Member States relating to
        turnover taxes - Abolition of certain derogations provided for
           in Article 28(3 ) of Directive 77 / 388 / EEC - Common system of
                                   value added tax
         ( presented by the Commission pursuant to the second paragraph
                         of Article 149 of the EEC Treaty )
C0M(87 ) 272 final
                         H **«,/'■ '%> Jal
 ---pagebreak---                         EXPLANATORY MEMORANDUM
            On 30 November 1984 the Commission submitted to the Council
a proposal for an eighteenth VAT Directive concerning the abolition
of certain derogations provided for in Article 28(3) of Directive
77 / 388 / EEC ( 1 ).
            On 3.7.1985 the Economic and Social Committee delivered an
opinion favorable to the proposal ( 2 ). The European Parliament , in
its opinion of 6 April 1987 ( 3 ) was in principle in favour of the
proposal, but nevertheless proposed a number of amendments . These
amendments essentially concern, on the one hand changes in the time¬
table proposed for the abolition of the derogations, and on the other
hand the inclusion of certain derogations that the Parliament considers
should be ended to take account of the abolition of fiscal frontiers by
31.12.1992 .        Furthermore the Parliament requested that the derogations
in Article 28(3 ) ( e ) be maintained in view of the absence of a community
regime in the field of works of art , collector 's items , antiques and
second hand goods .
            The Commission has accepted the majority of the amendments . In
relation to the abolition of the derogationsfor transactions in gold ,
other than gold for industrial use , and for services supplied by authors ,
artists and performers the Commission , following the objections raised
by the Parliament , concluded that this question should be re-examined in
greater depth . The Commission will make proposals on this subject at a
later date .
( 1 ) 0J n° C 347 of 29.12.1984
( 2 ) OJ n° C 218 of 29.8.1985
 ( 3)
 ---pagebreak---                                                                                    i
                                                                            1 .
Amendments to the proposal for an Eighteenth Council Directive on the
harmonisation of Legislation of the Member States relating to turnover
taxes - Abolition of certain derogations provided for i-n Article 28(3 )
of Directive 77/ 388 / EEC - Common system of value added tax .
( Submitted by the Commission by virtue of Article 149(2 ) of the EEC
Treaty )
THE COMMISSION IS MODIFYING ITS PROPOSAL AS FOLLOWS:
1.   Article 1 has been changed as follows :
     The following paragraph 3 has been added :
     "3.   With effect from 1 January 1990 the following transactions shall
           be deleted from Annex E to Directive 77 / 388 / EEC :
                7.   Transactions referred to in Article 13 A ( 1)(q );
              11 .   Supplies covered by Article 13 B(g ) in so far as they
                     are made by taxable persons who were entitled to deduc¬
                     tion of input tax on the building concerned ."
2.   Article 2 has been changed as follows :
    "a ) In paragraph 1 the following point has been added after point           22 :
           23 .    The supply , modification , repair , maintenance , chartering
                   and hiring of aircraft , including equipment incorporated
                   or used therein , used by State institutions ."
     b ) Points      26 and    27 which occur in paragraph 1 have been deleted .
     c ) In paragraph 2 the following points have been added after point
           2 :
           "6 .    Services supplied by undertakers and cremation services ,
                   together with goods related thereto ?
            7.     Transactions carried out by blind persons or workshops for
                   the blind provided these exemptions do not give rise to
                   significant distortion of competition ."
                                                                          ./.
 ---pagebreak---                                                                          b
                                                                      2.
d)  Point       23 which occurs in paragraph 2 has been deleted .
e)  In paragraph 2 the following point has been added after point
        25 :
      " 27 .  The services of travel agents referred to in Article 26 ,
              and those of travel agents acting in the name and on
              account of the traveller , for journeys within the Com¬
              munity ."
f)  The following paragraph 3 has been added :
   "3 .   With effect from 1 January 1990 , the following transactions
          shall be deleted from Annex F to Directive 77 / 388 / CEE :
              5.   Telecommunications services supplied by public postal
                   services and supplies of goods incidental thereto ;
              8.   The supply of goods and services to official bodies
                   responsible for the construction , setting out and
                   maintenance of cemeteries , graves and monuments
                   commemorating war dead ;
             16 .  Supplies of those buildings and land described in
                   Article 4(3 ) ;
             17 .  Passenger transport ;
                   The transport of goods such as luggage or motor
                   vehicles accompanying passengers and the supply of
                   services related to the transport of passengers ,
                   shall only be exempted in so far as the transport
                   of the passengers themselves is exempt ."
3.  Article 3 has been replaced by the following text :
                                                                   ./.
 ---pagebreak---                                                                             ч
                                                                         3.
                               " Article 3
   1.  Point ( g ) of Article 28(3 ) of Directive 77 /388 / EEC shall be
       deleted from 1 January 1988 .
   2.  Points ( d ) and ( f ) of Article 28(3 ) of Directive 77 / 388 / EEC
       shall be deleted from 1 January 1990 . "
4. A revised text of the changed proposal is       annexed .
 ---pagebreak---                                                                                   ANNEX
                             Amended proposal for an
                           EIGHTEENTH . COUNCIL , DIRECTIVE
        on the harmonization of the laws of the Member States relating
        to turnover taxes - Abolition of certain derogations provided
         for in Article 28(3 ) of Directive 77 / 388 / EEC - Common system
                                of value added tax
  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
  Having regard to the Treaty establishing the European Economic Commu¬
 nity , 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^,
                                                            4
Whereas Article 28(3 ) of Counci l Directi ve 77 / 388 / EEC , as last amended by .
 . , permitsthe Member States to apply measures derogati ng from the normal
 rules of the common system of value added tax during a transitional period ; whereas
 that transitional period was originally fixed at five years ; whereas
the Council undertook to act , before the expiry of that period , on the
abolition , where appropriate , of some or all of those derogations ;
Whereas many of thos derogations give rise , under the own resources
system , to difficulties in calculating the compensation provided for in
Council Regulation ( EEC , Euratom, ECSC ) No 2892 /77^; whereas , in order
to ensure that that system operates more efficiently , it is              necessary
to abolish those derogations ;
1
   OJ n° C 347 of   29.12.1984 , P. 3
2
3
4
   OJ n' C 218 of 29.08.1985 , p. 11
5 OJ  No L 145 , 13.6.1977 , p. 1
  OJ No L 336 , 27.12.1977 , p. 8
 ---pagebreak--- Whereas the abolition of those derogations will also contribute to
greater neutrality of the value added tax system at Community level
Whereas it is necessary to draw up a timetable for that abolition ;
whereas that timetable should be phased according to the economic ,
social and budgetary impact which the abolition of the various
derogations is likely to have ,
HAS ADOPTED THIS DIRECTIVE :
 ---pagebreak---                                     1
                                                                       f
                               Artide 1
1.      With effect from 1 January 1986 , the following transactions
shall be deleted from Annex E to Directive 77 / 388 / EEC :
   1 .  Transactions referred to in Article 13A(1)(a ) in so far as
        they relate to parcel post services ;
   3.   Transactions referred to in Article 13A(1)(f ) other than
        those of groups of a medical or paramedical nature ;
   4.   Transactions referred to in Article 13A(1)(m );
   5.   Transactions referred to in Article 13A(1)(n );
  6.    Transactions referred to in Article 13A(1)(p );
  8.    Transactions referred to in Article 13B(d)(2 ) in so far as
       they relate to the services of intermediaries ;
  9.   Transactions referred to in Article 138(d)(5 ) in so far as
       they relate to the services of intermediaries ;
  10 . Transactions referred to in Article 13B(d)(6 );
 12 .  Supplies of goods referred to in Article 15(2 );
 13 .  Transactions referred to in Article 15(6 ) and ( 9 );
 14 .  Supplies referred to in Article 15(12 );
 15 .  The services of travel agents referred to in Article 26 ,
       and those of travel agents acting in the name and on
       account of the traveller , for journeys outside the Community .
 ---pagebreak---                                  - 2 -                                       î
 2.          With effect from 1 January 1988 , the following transactions
 shall be deleted from Annex E to Directive 77 / 388 / EEC :
     2.   Transactions referred to in Article 13A(1)(e ).
 3.         With effect from 1 January 1990 , the following transactions
 shall be deleted from Annex E to Directive 77 / 388 / EEC :
    7.    Transactions referred to in Article 13A(1)q ;
     11 . Supplier covered by Article 13BCg ) in so far as they are made by
          taxable persons who were entitled to deduction of input tax on the
          building concerned .
                                  Article 2
1.        With effect from 1 January 1986 , the following transactions
shall be deleted from Annex F to Directive 77 / 388 / EEC :
   3.     Supply of services by means of agricultural machinery for
          individual or associated agricultural undertakings ;
   4.     Supply of greyhounds and thoroughbred horses ;
   11 .   Services of experts in connection with insurance claim
          assessments ;
   13 .   Management of credit and credit guarantees by a person or
          a body other than the one which granted the credits ;
   14 .   Debt collection ; .
   15 .   The safekeeping and management of shares , interests in
          companies and associations , debentures and other securities
          or negotiable instruments , excluding documents establishing
          title to goods or securities referred to in Article 5(3 );
 ---pagebreak---                                  - 3 -
   18 .  The supply , modification , repair , maintenance , chartering
         and hiring of commercial inland waterway vessels and the
         supply , hiring , repair and maintenance of equipment
         incorporated or used therein ;
   19 .  Supplies of some capital goods after the expiry of the
        adjustment period for deductions ;
   20 .  Supplies of recuperable material and fresh industrial waste ;
   21 .  Goods for the fuelling and provisioning of private boats
        proceeding outside the national territory ;
   22 .  Goods for the fuelling and provisioning of aircraft for
        private use proceeding outside the national territory ;
   23 . The supply , modification , repair , maintenance , chartering
        and hiring of aircraft , including equipment incorporated or
        used therein , used by State institutions ;
   24 . The transport of goods on the Rhine and the canalized Moselle -,
        and transactions linked thereto ;
2.      With effect from 1 January 1988 , the following transactions
shall be deleted from Annex F to Directive 77 / 388 / EEC :
    1.  Admission to sporting events ;
    2.  Services supplied by lawyers and members of other professions ,
        except the medical and paramedical professions , in so far as
        these are not services specified in Annex B to the Second
        Council Directive of 11 April 1967 ;
    6.  Services supplied by undertakers and cremation services , together
        with goods related thereto ;
    7.  Transactions carried out by blind persons or workshop for the
        blind provided these exemptions do not give rise to significant
        distorsion of competition ;
 ---pagebreak---      9.   Treatment of animals by veterinary surgeons ;
    12 .  The supply of water by public authorities ;
    25 .  The supply , modification , repair , maintenance , chartering
          and hiring of warships ;
    27 .  The services of travel agents referred to in Article 26 , and
          those of travel agents acting in the name and on account of
          the traveller , for journeys within the Community .
3.        With effect from 1 January 1990 , the fol lowing transactions
shall be deleted from Annex F to Directive 77 / 388 / CEE ;
     5.   Telecommunications services supplied by public postal services
          and supplies of goods incidental thereto ;
     8.  The supply of goods and services to official bodies responsible
         for the construction , setting out and maintenance of cemeteries
         graves and monuments commemorating war dead ;
   16 .  Supplies of those buildings and land described in Article 4(3 )
  17 .   Passenger transport .
         The transport of goods such as luggage or motor
         vehicles accompanying passengers and the supply of
         services related to the transport of passengers ,
         shall only be exempted in so far as the transport
         of the passengers themselves is exempt ."
 ---pagebreak---                                                  5 -
                                      Artide 3
1.      Point ( g) of Article 28(3 ) of Directive 77 / 388 / EEC shall be
deleted from 1 January 1988 .
 2.     Points ( d ) and ( f ) of Article 28(3 ) of Directive 77 / 388 / EEC
 shall be deleted from 1 January 1990 .
                                  Article 4
1 .     Member States shall bring into force the measures necessary to
comply with this Directive not later than the dates laid down in
Articles 1 , 2 and 3 .
2.      Member States shall inform the Commission of the provisions
which they adopt for the purpose of implementing this Directive .
                                  Art i c le 5
        This Directive is addressed to the Member States .
Done at Brussels , 12 June 1987                 For the Council
                                                 The President