Harmonisation of turnover taxes

1) OBJECTIVE

To phase in a common system of value-added tax.

2) COMMUNITY MEASURES

First Council Directive 67/227/EEC of 11 April 1967 on the harmonisation of legislation of Member States concerning turnover taxes.

Amended by the following measures:

Council Directive 69/463/EEC of 9 December 1969;

Council Directive 77/388/EEC of 17 May 1977.

3) CONTENTS

The following text contains a consolidation of the Directives.

By 1 January 1972 at the latest each Member State is to replace, its system of turnover taxes by the common system of value-added tax, but without an accompanying harmonisation of rates and exemptions.

The common system is to be based on the neutrality principle: within each Member State similar goods and services are to bear the same tax burden, whatever the length of the production and distribution chain.

The structure of, and the procedure for applying, the common system of value-added tax are to be the subject of a second Directive.

During a second stage and on a proposal from the Commission presented before 1 January 1969, the Council is to adopt measures relating to the abolition of tax controls at intra-Community frontiers.