Article 1 
By way of derogation from Article 11(A)(1)(a) of Directive 77/388/EEC, the Republic of Cyprus is hereby authorised to use the open market value as the taxable amount of a supply in the circumstances described in Article 2.
Article 2 
The open market value may be applied only when all the following conditions are met: 1. The consideration paid is less than the open market value of the supply; 2. The recipient of the supply does not have a right to deduct in full; 3. The person making the supply and the recipient are connected by family, business or legal ties, as defined in national legislation; 4. A number of facts make it possible to conclude that these family, business or legal ties have influenced the determination of the taxable amount provided for in Article 11(A)(1)(a) of Directive 77/388/EEC.
Article 3 
The authorisation granted under Article 1 shall expire on the date of entry into force of a Directive rationalising the derogations pursuant to Article 27 of Directive 77/388/EEC which counter avoidance of VAT through the valuation of supplies between connected persons, or on the 1 June 2009, whichever is the earlier.
Article 4 
This Decision is addressed to the Republic of Cyprus.