CELEX: 51992PC0580
Language: en
Date: 1992-12-21
Title: Proposal for a COUNCIL REGULATION (EEC) amending Council Regulation (EEC, Euratom) No 1553/89 of 29 May 1989 on the definitive uniform arrangements for the collection of own resources accruing from value added tax

9 . 2 . 93                                      Official Journal of the European Communities                                     No C 35 /9
                                                                           II
                                                                  (Preparatory Acts)
                                                            COMMISSION
                 Proposal for a Council Regulation amending Regulation (EEC, Euratom) No 1553/89 of 29
                 May 1989 on the definitive uniform arrangements for the collection of own resources accruing
                                                               from value added tax
                                                                    (93 / C 35 / 12)
                                                                 COM(92) 580 final
                                               (Submitted by the Commission on 21 December 1992)
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                                     Whereas common methods should be laid down for the
                                                                               calculation of certain elements of the base for own
                                                                               resources accruing from value added tax in order to
 Having regard to the Treaty establishing the European                         ensure uniform application of Regulation (EEC ,
 Economic Community, and in particular Article 209                             Euratom) No 1553 / 89 ,
 thereof,
 Having regard to the Treaty establishing the European                         HAS ADOPTED THIS REGULATION :
 Atomic Energy Community, and in particular Article 183
 thereof,
                                                                                                         Article 1
 Having regard to Council Decision 88 /376/EEC,                                Regulation (EEC , Euratom) No 1553 / 89 is amended as
 Euratom of 24 June 1988 on the system of the                                  follows :
 Communities' own resources ('), and in particular Article
 8 (2) thereof,                                                                in Article 2
 Having regard to the proposal from the Commission,                            — paragraph 1 is replaced by the following :
 Having regard to the opinion of the European                                      '1.    The VAT resources base shall be determined
 Parliament,                                                                       from the taxable transactions referred to in Articles 2
                                                                                   and 28a of Council Directive 77/ 388 / EEC , as last
 Having regard to the opinion of the Court of Auditors,                            amended by Directive 91 /680 / EEC , with the
                                                                                   exception of transactions exempted under Articles 1 3
Whereas following the adoption of directives on the                                to 16 , 28c and 28k of that Directive or to which
harmonization of national legislation relating to VAT                              exemption from VAT applies under Directive
which supplement or amend the Sixth Council Directive                              69/ 169/EEC O as last amended by Article 2 (3) of
77/388 /EEC of 17 May 1977 on the harmonization of                                 Directive 91 /680 /EEC (2).
the laws of the Member States relating to turnover taxes
— Common system of value added tax : uniform basis of
assessment (2)        —        and       in     particular   Directive             O OJNo L 133 , 4 . 6 . 1969 , p. 6 .
91 /680/EEC (3), which includes provision for the
                                                                                   (2) OJ No L 376 , 31 . 12 . 1991 , p . 1 .'
application, with effect from 1 January 1993, of tran­
sitional arrangements for the taxation of trade between
Member States , it is necessary to adjust Council Regu­                       — in the third indent of paragraph 2 , the words 'or
lation (EEC, Euratom) No 1553 / 89 of 29 May 1989 on                               which they exempt' are inserted after the words
the definitive uniform arrangements for the collection of                          'continue to exempt' and the words 'and ( 3a)' are
own resources accruing from value added tax (4) ;                                  inserted after the words 'Article 28 (3) (b)' ;
                                                                              in Article 4
(')   OJ   No L 185 , 15 . 7 . 1988 , p . 24 .
O    OJ   No  L 145 , 13 . 6 . 1977 , p . 1 .                                 — in paragraph 1 the phrase 'or for which there is no
(3)  OJ   No  L 376 , 31 . 12 . 1991 , p . 1 .                                     longer exemption or repayment of VAT pursuant to
(4)  OJ   No  L 155 , 7 . 6 . 1989, p . 9 .                                        Directive 69/ 169/EEC as last amended by Article 2
 ---pagebreak--- No C 35 / 10                                   Official Journal of the European Communities                                           9 . 2 . 93
    (3) of Directive 91 /680/EEC' is inserted after the                             'In the cases provided for in Articles 2 (3), 4 (7) and
    words    'which       do    not    entitle  the    customer to                  6 ( 1 ), (2) and (4), the VAT resources base shall be
    deduction of VAT';                                                              calculated by applying the common calculation
                                                                                   method set out in the Annex.'
— in the introductory phrase of paragraph 2 the words
    'or non-repayable' are inserted after the word
    'non-deductible';                                                                                      Article 2
— the following subparagraph is added at the end of                            This Regulation shall enter into force on the day
    paragraph 2 :                                                              following its publication in the Official Journal of the
                                                                               European Communities.
    'These categories shall also include supplies subject to
   VAT in the Member State concerned but consumed
                                                                               It shall apply from 1 January 1993 .
    or used for gross fixed capital formation in another
    Member State .';
                                                                               It shall not apply, however, to the production or
                                                                               correction of statements of the VAT resources base for
in Article 6
                                                                               years before 1993 which have been produced in
                                                                               accordance with Regulation (EEC, Euratom) No
— in the second indent of paragraph 2 the words 'or
   which they exempt' are inserted after the words
                                                                               1553/89, which remains in force in respect of the
                                                                               statements concerned .
    'continue to exempt' and the words 'and (3a)' are
   inserted after the words 'Article 28 (3) (b)\
                                                                              This Regulation shall be binding in its entirety and
— paragraph 5 is replaced by the following :                                   directly applicable in all Member States .
                                                                     ANNEX
                                                 COMMON CALCULATION METHOD ( l)
              1 . Article 2 (3 )
                  (a) For taxed transactions by taxable persons whose annual turnover does not exceed ECU 10 000, the
                       VAT resources base is determined :
                       — by adding to this base the net prices of goods and services — purchased by these taxable persons
                            — bearing VAT which is deductible under Article 17 of Directive 77/388 /EEC,
                       — by subtracting from this base the value of goods and services supplied by these taxable persons to
                            non-taxable persons.
                  (b) For exempt transactions by businesses whose annual turnover does not exceed ECU 10 000, the
                       VAT own resources base is determined :
                       — by subtracting from this base the net prices of goods and services — purchased by these busi­
                            nesses — bearing VAT which is deductible under Article 17 of Directive 77/ 388 /EEC .
              (') In this Annex supplies to taxable persons or purchases by taxable persons are supplies or purchases on which the
                  taxable purchasers — given that the operations concerned are or would be taxed — are or would be entitled to deduct
                  the VAT.
                  Supplies to non-taxable persons or purchases by non-taxable persons are supplies or purchases on which the
                  non-taxable purchasers — given that the transactions concerned are or would be taxed — are not or would not be
                  entitled to the VAT.
 ---pagebreak--- 9 . 2 . 93                                  Official Journal of the European Communities                                          No C 35 / 11
           2 . Article 4 (7)
               The first subparagraph of Article 4 (7) provides for the calculation of two partial weighted average rates
               and hence the calculation of two partial intermediate VAT bases.
               In order to calculate the weightings to be applied to the old rates (and/or old legislation) and the new
               rates (and/or the new legislation), the purchases and supplies referred to in Article 4 (2) are broken
               down on the basis of the periods of the calendar year during which the VAT revenue was yielded at the
               old rates (and/or under the old legislation) and at the new rates (and/or under the new legislation).
               The second subparagraph of Article 4 (7) provides for a single weighted average rate to be calculated
               and to be applied to the total net receipts for the year.
               At an intermediate stage two weighted average rates are calculated, on an annual basis, using, in the
               first case, the old rates (and/ or the old legislation) and, in the second case, the new rates (and /or the
               new legislation).
               The single weighted average rate is calculated as the weighted sum of each of the average rates
               calculated as above, taking into account the length of the period during which the VAT was yielded at
               the old rates (and/or under the old legislation) and at the new rate (and/or under the new legislation).
           3 . Article 6 ( 1 ) and (2)
               (a) Method to be applied in respect of :
                    — operations by taxable persons whose annual turnover exceeds ECU 10 000 but who are
                        exempted,
                    — the transactions listed in Annex F to Directive 77 / 3 8 8 /EEC which Member States continue to
                        exempt, or which they exempt.
                    The VAT resources base is determined :
                    — by subtracting from this base the net prices of goods and services purchased by these taxable
                        persons bearing VAT which is deductible under Article 17 of Directive 77/ 388 /EEC ,
                    — by adding to this base the value of goods and services supplied by these taxable persons to
                        non-taxable persons .
                    In addition :
                    the VAT on the net prices of goods and services bearing VAT which is deductible under Article 17
                    of Directive 77/388 /EEC, corresponding to supplies to non-taxable persons, is subtracted from the
                    VAT resources base, and the VAT on the net prices of goods and services bearing VAT which is
                    deductible under Article 17 of Directive 77/388 /EEC, corresponding to supplies to taxable persons
                    who themselves will supply direct, or via other supplies to taxable persons, to non-taxable persons, is
                    subtracted from the VAT resources base (').
               (b) For the operations listed in Annex E to Directive 77/388 /EEC which Member States continue to
                    tax, the VAT resources base is determined :
                    — by adding to this base the net prices of goods and services purchased by these taxable persons
                        bearing VAT which is deductible under Article 17 of Directive 77 / 388 /EEC,
                    — by subtracting from this base the value of goods and services supplied by these taxable persons to
                        non-taxable persons.
                    In addition :
                    the VAT on the net prices of goods and services bearing VAT which is deductible under Article 17
                    of Directive 77 / 388 /EEC, corresponding to supplies to taxable persons who themselves will supply
                    direct, or via other supplies to taxable persons, to non-taxable persons, is added to the VAT
                    resources base (').
           (') These provisions apply only if the data required for determining the deductible VAT on the net prices of the goods
               and services in question are derived from precise statistical data.
 ---pagebreak--- No C 35 / 12                              Official Journal of the European Communities                                    9 . 2 . 93
                 (c) For the operations referred to in Annex G ( 1 ) (a) to Directive 77/ 388 /EEC which are taxed by
                     virtue of an option given to taxable persons by the Member States, the VAT resources base is
                     determined in accordance with the calculation rules set out at (b) above.
             4 . Article 6 (4 )
                 (a) Where a Member State restricts the exercise of the right to deduct in respect of the purchase of
                     passenger cars used for business purposes, and of expenditure relating to the leasing, hiring, main­
                     tenance and repair of such cars, the VAT resources base is determined :
                     — by subtracting from this base the net prices of such purchases and such expenditure by taxable
                         persons who have no right or only a limited right to deduct the VAT concerned, provided these
                         cars are used for business purposes,
                     — by adding to this base the net prices of used cars supplied by these taxable persons to
                         non-taxable persons.
                 (b) Where a Member State restricts the exercise of the right to deduct in respect of purchases of
                     petroleum products used for business purposes, the VAT resources base is determined by subtracting
                     from this base the net prices of such products purchased by taxable persons having no right or only
                     a limited right to deduct the VAT concerned, provided these products are used for business
                     purposes .