Keywords
Summary

Keywords

1 . TAX PROVISIONS - HARMONIZATION OF LEGISLATION - TURNOVER TAXES - COMMON SYSTEM OF VALUE-ADDED TAX - SIXTH DIRECTIVE - TERRITORIAL SCOPE - TAXATION BY A MEMBER STATE OF SERVICES PERFORMED OUTSIDE ITS SOVEREIGN TERRITORY ON BOARD A VESSEL OVER WHICH IT HAS JURISDICTION - ADMISSIBILITY

( COUNCIL DIRECTIVE 77/388 , ARTS 3 AND 9 )

2 . TAX PROVISIONS - HARMONIZATION OF LEGISLATION - TURNOVER TAXES - COMMON SYSTEM OF VALUE-ADDED TAX - SUPPLY OF SERVICES - DETERMINATION OF THE POINT OF REFERENCE FOR TAX PURPOSES - OPTIONS AVAILABLE TO THE MEMBER STATES - CRITERION - APPROPRIATENESS FOR TAX PURPOSES

( COUNCIL DIRECTIVE 77/388 , ART . 9 ( 1 ))

3 . TAX PROVISIONS - HARMONIZATION OF LEGISLATION - TURNOVER TAXES - COMMON SYSTEM OF VALUE-ADDED TAX - SUPPLY OF SERVICES - DETERMINATION OF THE POINT OF REFERENCE FOR TAX PURPOSES - ' FIXED ESTABLISHMENT ' WITHIN THE MEANING OF THE SIXTH DIRECTIVE - CONCEPT - OPERATION OF GAMING MACHINES ON BOARD A VESSEL ON THE HIGH SEAS

( COUNCIL DIRECTIVE 77/388 , ART . 9 ( 1 ))

4 . TAX PROVISIONS - HARMONIZATION OF LEGISLATION - TURNOVER TAXES - COMMON SYSTEM OF VALUE-ADDED TAX - EXEMPTIONS PROVIDED FOR IN THE SIXTH DIRECTIVE - EXEMPTION OF SERVICES TO MEET THE DIRECT NEEDS OF SEA-GOING VESSELS - OPERATION OF GAMING MACHINES INSTALLED ON BOARD - EXCLUSION

( COUNCIL DIRECTIVE 77/388 , ART . 15 ( 8 ))

Summary

1 . THE TERRITORIAL SCOPE OF THE SIXTH DIRECTIVE , DIRECTIVE 77/388 , ON THE HARMONIZATION OF THE LAWS OF THE MEMBER STATES RELATING TO TURNOVER TAXES COINCIDES , IN THE CASE OF EACH MEMBER STATE , WITH THE SCOPE OF ITS VALUE-ADDED-TAX LEGISLATION . HENCE , ARTICLE 9 OF THE DIRECTIVE , CONCERNING THE PLACE WHERE A SERVICE IS DEEMED TO BE SUPPLIED , DOES NOT PREVENT THE MEMBER STATES FROM TAXING SERVICES PROVIDED OUTSIDE THEIR TERRITORIAL JURISDICTION ON BOARD SEA-GOING SHIPS OVER WHICH THEY HAVE JURISDICTION .

2 . IN ORDER TO DETERMINE THE POINT OF REFERENCE FOR TAX PURPOSES FOR THE PROVISION OF SERVICES IT IS FOR EACH MEMBER STATE TO DETERMINE FROM THE RANGE OF OPTIONS SET FORTH IN DIRECTIVE 77/388 WHICH POINT OF REFERENCE IS MOST APPROPRIATE FROM THE POINT OF VIEW OF TAX . ACCORDING TO ARTICLE 9 ( 1 ) OF THE DIRECTIVE , THE PLACE WHERE THE SUPPLIER HAS ESTABLISHED HIS BUSINESS IS A PRIMARY POINT OF REFERENCE INASMUCH AS REGARD IS TO BE HAD TO ANOTHER ESTABLISHMENT FROM WHICH THE SERVICES ARE SUPPLIED ONLY IF THE REFERENCE TO THE PLACE WHERE THE SUPPLIER HAS ESTABLISHED HIS BUSINESS DOES NOT LEAD TO A RATIONAL RESULT FOR TAX PURPOSES OR CREATES A CONFLICT WITH ANOTHER MEMBER STATE .

3 . ARTICLE 9 ( 1 ) OF DIRECTIVE 77/388 , ON THE PLACE WHERE A SERVICE IS DEEMED TO BE SUPPLIED FOR TAX PURPOSES , MUST BE INTERPRETED AS MEANING THAT AN INSTALLATION FOR CARRYING ON A COMMERCIAL ACTIVITY , SUCH AS THE OPERATION OF GAMING MACHINES , ON BOARD A SHIP SAILING ON THE HIGH SEAS OUTSIDE THE NATIONAL TERRITORY MAY BE REGARDED AS A FIXED ESTABLISHMENT WITHIN THE MEANING OF THAT PROVISION ONLY IF THE ESTABLISHMENT ENTAILS THE PERMANENT PRESENCE OF BOTH THE HUMAN AND TECHNICAL RESOURCES NECESSARY FOR THE PROVISION OF THOSE SERVICES AND IT IS NOT APPROPRIATE TO DEEM THOSE SERVICES TO HAVE BEEN PROVIDED AT THE PLACE WHERE THE SUPPLIER HAS ESTABLISHED HIS BUSINESS .

4 . ARTICLE 15 ( 8 ) OF DIRECTIVE 77/388 , ON THE EXEMPTION OF SERVICES TO MEET THE DIRECT NEEDS OF SEA-GOING VESSELS , MUST BE INTERPRETED AS MEANING THAT THE EXEMPTION FOR WHICH IT PROVIDES DOES NOT APPLY TO THE OPERATION OF GAMING MACHINES INSTALLED ON BOARD SEA-GOING VESSELS .