CELEX: 51984PC0084
Language: en
Date: 1984-02-16
Title: Amendment to the proposal for a Twelfth Directive relating to the common system of valued added tax: expenditure not eligible for deduction of value added tax

29.2.84                                Official Journal of the European Communities                             No C 56/7
                                                              II
                                                      (Preparatory Acts)
                                                 COMMISSION
               Amendment to the proposal for a Twelfth Directive relating to the common system of
                      valued added tax: expenditure not eligible for deduction of value added tax (')
                                                      COM(84) 84 final
               (Submitted by the Commission to the Council pursuant to Article 149 (2) of the EEC Treaty
                                                    on 20 February 1984)
                                                        (84/C 56/10)
                          Article 1                               'Passenger car' means any road vehicle (including any
                                                                  trailer) other than one which, by its design and
1.  In the first subparagraph of paragraph 2, the                 equipment, is intended solely for the transport of
    words 'passenger cars' and 'or motor cycles' are              goods or is intended for industrial or agricultural use
    deleted.                                                      or has a seating capacity of more than nine persons
                                                                  including the dirver' (Text of the third subparagraph
    The second subparagraph of paragraph               1 is       of Article 1 (1) of the initial proposal.)
    unchanged.
    The third subparagraph of paragraph 1 is                      2.    The beginning of paragraph 2 is amended as
    transferred to the end of paragraph la, set out                     follows:
    below.
                                                                        'The exclusions from the right to deduct value
la. The following paragraph          la is inserted    after            added tax referred to in paragraphs 1 and la shall
    paragraph 1:                                                        not apply to vehicles or craft which are:'
    'The right to deduct value added tax in respect of                  (a) '
    expenditure on the purchase, manufacture,                           (b)
                                                                                 text unchanged.
    importation, leasing or hire, use, modification,                    (c)
    repair or maintenance of passenger cars and
                                                                        (d) J
    motor cycles shall be subject to the following
    restrictions in all Member States:
    (a) within a period of two years at the most after                                     Article 2
         the entry into force of this Directive, the
         right to deduct value added tax charged in               Paragraph 1 is amended to read as follows:
         respect of the abovementioned vehicles shall
         be set at a level between not less than 25 %                  '1.    The right to deduct value added tax
         and not more than 75 % of the tax charged;                    charged in respect of transport expenses incurred
                                                                       on business travel by a taxable person or by
    (b) within a period of four years at the most after                members of his staff shall be limited in the same
         the entry into force of this Directive, the                   proportions and in accordance with the same
         right to deduct value added tax charged in                    timetable as specified in Article 1 (la). "Business
         respect of the abovementioned vehicles shall,                 travel" means a journey undertaken by a taxable
         in all Member States, be fixed at 50 % of the                 person or by a member of his staff for business
         tax charged.                                                  reasons away from their place of establishment or
                                                                       away from the place at which they carry on their
    In the case of value added tax charged in respect                  trade.'
    of expenditure on supplies (fuels, lubricants, spare
    parts, etc.) for, or services performed in relation           Paragraph 2 is unchanged.
    to, such vehicles and craft, the same rules on
    deductibility shall apply.
                                                                                            Article 3
C) O J N o C 3 7 , 10.2. 1983, p. 8.                              Unchanged.
 ---pagebreak--- No C 56/8                          Official Journal of the European Communities                           29.2.84
                      Article 3a                                 Member States shall maintain in force or
                                                                 introduce arrangements for verifying ex post facto
This new Article reads as follows:
                                                                 that such expenditure was indeed            made
   'A taxable person may request application of                  exclusively for business purposes.
   Article 17 (2) of Directive 77/388/EEC in respect             They shall notify the Commission of the
   of the items of expenditure listed in Articles 1, 2           provisions adopted to this end.'
   and 3 above if he can furnish proof that such
   expenditure has been made exclusively for                                      Articles 4 to 9
   business purposes.                                         Unchanged.