CELEX: 51987PC0322
Language: en
Date: 1987-08-21
Title: PROPOSAL FOR A COUNCIL DIRECTIVE COMPLETING AND AMENDING DIRECTIVE 77/388/EEC REMOVAL OF FISCAL FRONTIERS

No C 252/2                                Official Journal of the European Communities                                    22.9. 87
                                                                  II
                                                          (Preparatory Acts)
                                                    COMMISSION
                       Proposal for a Council "Directive completing and amending Directive 7 7/3 8 8/EEC
                                                  — Removal of fiscal frontiers —
                                                        COM(87) 322 final/2
                                  (Submitted by the Commission to the Council on 7 August 1987)
                                                           (87/C 252/02)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                               2. Article 7 is replaced by the following:
Having regard to the Treaty establishing the European                      Article 7
Economic Community, and in particular Article 99
thereof,                                                                  Importation of goods shall mean the entry of goods
                                                                          from third countries into the territory of the country
Having regard to the proposal from the Commission,                        as defined in Article 3.'
Having regard to the opinion of the European Par-
liament,                                                               3. Article 8 (2) is replaced by the following:
Having regard to the opinion of the Economic and                          '2.     By way of derogation from paragraph 1 (a),
Social Committee,                                                         where the place of departure of the consignment or
                                                                          transport of goods is in a third country, the place of
Whereas completing the internal market, which is one of                   the supply by the importer within the meaning of
the fundamental objectives of the Community, requires                     Article 21 (2) and the place of any subsequent
that fiscal frontiers be abolished, that is to say that the               supplies shall be deemed to be within the country of
system of remission of tax on exportation and the                         import of the goods.'
imposition of tax on importation and of frontier controls
on taxable persons as well as on private persons be                    4. Article 9 (2) (b) is replaced by the following:
discontinued;
                                                                          '(b) the place where transport services are supplied
"Whereas the abolition of the remission of taxation on                          shall be the pkce of departure.
exports and of the charging of tax on imports must not,
as regards Community trade between taxable persons,                             "Place of departure" shall mean the place where
interfere with the principle that the tax revenue arising                       the transport operation actually commences as
from the application of the tax at the final consumption                        given on the ticket or waybill, without taking
stage should be assigned to the Member State where that                         any intermediate stops into consideration.
final consumption occurs;                                                       However, where several suppliers in turn take
                                                                                part in the same transport operation, the place
Whereas consequently Council Directive 77/388/                                  of departure shall mean each place where the
EEC (*), last amended by the Act of Accession of Spain                          service supplied by each such person begins. For
and Portugal, should be amended, and the Directives                             the purposes of this provision, the place of
dealing with exemption at importation should be                                 departure for a feeder transport operation to a
modified,                                                                       port, airport or, more generally, to the point
                                                                                where main transport operation starts shall not
                                                                                be regarded as the place of departure for that
HAS ADOPTED THIS DIRECTIVE:                                                     main operation.
                            Article 1                                           In the case of an outward and inward transport
Directive 77/388/EEC is replaced by the following:                              operation, even if this is carried out by the same
                                                                                supplier of services, the return journey shall be
  1. Article 2 (2) is replaced by the following:                                regarded as a separate service, whose place of
                                                                                departure shall be determined in accordance
     '2. The importation of goods from third countries'.                       with the previous subparagraph. However, with
                                                                                regard to outward and inward transport
                                                                                operations between one bank and the other of a
(') O J N o L 145, 13.6. 1977, p. 1.                                           waterway performed under a single contract,
 ---pagebreak--- 22.9. 87                                  Official Journal of the European Communities                              No C 252/3
          the place for the whole transport operation,               14. Article 15 (3) is replaced by the following:
          shall be that where the outward journey
          commences.'                                                    '3. the supply of services consisting of work on
                                                                              movable property acquired or imported for the
                                                                             purpose of undergoing such work within the
 5. The introductory phrase of Article 9 (2) (e) is
                                                                             territory as defined in Article 3, and dispatched
    replaced by the following:
                                                                              or transported out of the Community by the
                                                                             person providing the services or by the customer
    'the place where the following services are supplied                     if established in a third country or on behalf of
    when performed for customers established outside                         either of them;'.
    the Community, or for taxable persons established in
    the Community by suppliers established outside the
    Community, shall be the place where the customer                 15. In Article 15 (4) (a), the words 'to third countries'
    has established his business or has a fixed                          are added after the words 'carrying passengers for
    establishment to which the service is supplied or, in                reward'.
    the absence of such a place, the place where he has
    his permanent address or usually resides:'.                      16. In Article 15 (6), the words 'to third countries' are
                                                                         added after the words 'for reward chiefly on inter-
 6. Article 11 B is amended as follows:                                  national routes'.
    — Paragraph 1 is replaced by the following:                      17. Article 15 (11) is deleted.
        '1.    The taxable amount shall be the value for             18. In Article 15 (12), the words 'to third countries' are
        customs purposes, determined in accordance with                  added after the words 'which export them'.
        Council Regulation (EEC) No 1224/80 (x).
                                                                     19. In Article 15 (13), the words 'to third countries' are
         O O J N o L 134,31. 5. 1980, p. 1.'                             added after the words 'the export of goods'.
    — Paragraph 2 is deleted.                                        20. In Article 15 (14), the words 'outside the territory of
                                                                         the country as defined in Article 3' are replaced by
                                                                         the words 'outside the Community'.
 7. In Article 11 B (5), the words 'outside the
    Community' are added after the words 'have been
    temporarily exported'.                                           21. The second paragraph of Article 15 (14) is deleted.
 8. The following subparagraph is added to Article                   22. Article 15 (15) is replaced by the following:
    13 B:
                                                                         '15. air and sea transport operations to or from the
    '(i) supplies of gold to Central Banks.'                                   islands which make up the autonomous regions
                                                                               of the Azores and Madeira, or carried out
                                                                               between the said islands.'
 9. Article 13 C (b) is replaced by the following:
                                                                     23. Article 16 (2) is replaced by the following:
    '(b) the transactions covered in B (g) and (h) above.'
                                                                         '2. Subject to the consultation provided for in Article
10. In Article 14 (1) (c), (d), (e) and (g), the words 'or               29, Member States may opt to exempt imports for
    which would (so) qualify (therefore) . . . if they were              and supplies of goods to a taxable person intending
    imported from a third country' are deleted.                          to export them to third countries as they are or after
                                                                         processing, as well as supplies of services linked to
                                                                         that export business, up to a maximum equal to the
11. Article 14 (1) (f) is deleted.                                       value of exports to third countries during the
                                                                         preceding 12 months.'
12. The title of Article 15 is replaced by the following:
                                                                     24. In the introductory phrase of Article 17 (2), the
    'Exemption of exports to third countries,              like          words 'within the country' are added after the words
    transactions and international transport'.                           'for the purposes of his taxable transactions'.
13. In Article 15 (1) and (2), the words 'outside the                25. In Article 17 (2) (a), the words 'liable to pay tax
    territory of the country as defined in Article 3' are                within the Community' are added after the words
    replaced by the words 'outside the Community'.                       'by another taxable person'.
 ---pagebreak--- No C 252/4                             Official Journal of the European Communities                                  22.9.87
26. The following subparagraph (d) is added to Article                                       Article 3
     17(3):
                                                                   1.    The following Directives shall cease to apply on 31
    '(d) transactions exempted under Article 13 B (i).'           December 1992:
27. Article 17 (4) is replaced by the following:                  — Directive 79/1072/EEC,
    '4.    As regards taxable persons not established
    within the territory of the Community, entitlement            — Directive 83/182/EEC,
    to a refund shall be determined in accordance with
                                                                  — Directive 83/183/EEC,
    Council Directive 86/560/EEC (').
                                                                  — Directive 74/651/EEC.
    O OJ No L 326, 21. 11. 1986, p. 40.'
                                                                  2.     The following Directives shall cease to apply on 31
28. The following subparagraph is added to Article (2):
                                                                  December 1992, in respect of intra-Community trade
    'Where deductible tax is expressed in the national            relations:
    currency of a Member State other than that in which
    it is to be deducted, or in the currency of a third           — Directive 69/169/EEC,
    country, the amount to be deducted shall be
    converted into the currencies of the taxable person's         — Directive 83/181/EEC.
    country using the average exchange rate for the
    declaration period'.                                                                     Article 4
29. The following subparagraph is added to Article 22             On a proposal from the Commission, the Council shall
    (4):                                                          adopt the procedures which will make it possible to
    'The return must also contain on the one hand a               establish a clearing-house system with regard to VAT on
    declaration of the total amount of VAT relating to            intra-Community sales.
    transactions carried out for taxable persons in other
    Member States, and on the other hand a declaration                                       Article 5
    of the total amount of deductible VAT relating to
    transactions carried out by taxable persons in other          Member States shall adopt the necessary provisions to
    Member States. This provision shall not apply to              comply with this Directive by 31 December 1992 at the
    taxable persons whose annual turnover does not                latest. They shall notify the Commission immediately.
    exceed 35 000 ECU.'
                                                                  The Member States shall send the Commission the text
                                                                  of any provisions of national law which they adopt in the
                          Article 2
                                                                  field governed by this Directive.
The provisions brought into force by the Member States
under Article 28 of Directive 77/388/EEC shall cease to                                      Article 6
apply on 31 December 1992 at the latest in each of the
Member States concerned.                                          This Directive is addressed to the Member States.