CELEX: 51986PC0135
Language: en
Date: 1986-03-12
Title: PROPOSAL FOR A COUNCIL DECISION AUTHORIZING THE UNITED KINGDOM TO APPLY A SPECIAL MEASURE IN RESPECT OF THE NON-DEDUCTIBLE VALUE ADDED TAX CHARGED ON FUEL USED IN COMPANY CARS

26.6.86                                   Official Journal of the European Communities                             No C 159/5
                                                                 II
                                                         (Preparatory Acts)
                                                   COMMISSION
               Proposal for a Council Decision authorizing the United Kingdom to apply a special measure in
                     respect of the non-deductible value-added tax charged on fuel used in company cars
                                                        COM(86) 135 final
                                 (Submitted by the Commission to the Council on 18 March 1986)
                                                          (86/C 159/05)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                             HAS ADOPTED THIS DECISION:
Having regard to the Treaty establishing the European                                          Article 1
Economic Community,
                                                                     The United Kingdom is hereby authorized to fix on a
Having regard to the Sixth Council Directive                         flat-rate basis the proportion of VAT relating to
77/388/EEC of 17 May 1977 on the harmonization of                    expenditure on fuel used for private purposes in
the laws of the Member States relating to turnover taxes             company cars.
— Common system of value added tax: uniform basis of
assessment ('), as last amended by Directive 84/386/                                           Article 2
EEC (2), and in particular Article 27 thereof,
                                                                     For a transitional period, the proportion of VAT
Having regard to the proposal from the Commission,                   referred to in Article 1 may be expressed in fixed
                                                                     amounts determined according to engine capacity or
Whereas, under the terms of Article 27 (1) of Directive              type of vehicle. These fixed amounts shall be adjusted
77/388/EEC, the Council, acting unanimously on a                     annually in line with changes in the average cost of fuel.
proposal from the Commission, may authorize any
Member State to introduce special measures for dero-                                           Article 3
gation from the provisions of that Directive, in order to
simplify the procedure for charging the tax or to prevent            Where Article 2 is applied, the United Kingdom shall
certain types of tax evasion or avoidance;                           communicate to the Commission annually the following
                                                                     information, broken down by vehicle category:
Whereas the United Kingdom has requested authoriz-                   1. the average cost of fuel per kilometre,
ation to apply a special measure designed to determine
on a flat-rate basis the proportion of value-added tax               2. the average distance covered per vehicle each year on
relating to expenditure on fuel used for private purposes                private journeys, and
in company cars; whereas that measure derogates from                 3. an estimate of the number of vehicles affected by this
the provisions of Article 5 (6) and Article 17 (6) of                    Decision.
Directive 77/388/EEC;
                                                                     The system which has been set up will be reviewed on
Whereas it is appropriate to accede to that request                  the basis of this information and taking account of the
subject to certain conditions relating to the adjustment,            harmonization of expenditure not giving rise to a
renewal and period of application of the measure in                  deduction of VAT envisaged in Article 17 (6) of
question,                                                            Directive 77/388/EEC.
                                                                                               Article 4
(') O J N o L 145, 13.6. 1977, p. 1.
O OJ No L 208, 3. 8. 1984, p. 58.                                    This Decision is addressed to the United Kingdom.