Keywords
Summary

Keywords

1 . TAX PROVISIONS - HARMONIZATION OF LAWS - TURNOVER TAXES - COMMON SYSTEM OF VALUE-ADDED TAX - SIXTH DIRECTIVE - DOUBLE TAXATION IN INTRA-COMMUNITY TRADE - INCOMPATIBLE WITH ARTICLE 95 OF THE TREATY - ELIMINATION - ROLE DEVOLVING UPON THE COURT PENDING ACTION BY THE COMMUNITY LEGISLATURE

( EEC TREATY , ART . 95 ; COUNCIL DIRECTIVE NO 77/388/EEC , ARTS 2 AND 11 )

2 . TAX PROVISIONS - HARMONIZATION OF LAWS - TURNOVER TAXES - COMMON SYSTEM OF VALUE-ADDED TAX - VAT CHARGED ON THE IMPORTATION , FROM ANOTHER MEMBER STATE , OF GOODS SUPPLIED BY A NON-TAXABLE PERSON - METHOD OF CALCULATION

( EEC TREATY , ART . 95 ; COUNCIL DIRECTIVE NO 77/388/EEC )

Summary

1 . THE PRACTICAL APPLICATION OF THE COMMON SYSTEM OF VAT INTRODUCED BY THE SIXTH DIRECTIVE HAS GIVEN RISE TO INSTANCES OF DOUBLE TAXATION IN INTRA-COMMUNITY TRADE . ALTHOUGH IT IS FOR THE COMMUNITY LEGISLATURE TO ESTABLISH A SYSTEM OF COMPLETE COMPETITIVE NEUTRALITY INVOLVING , IN CASES WHERE GOODS ARE SUPPLIED BY ONE PRIVATE PERSON TO ANOTHER PRIVATE PERSON RESIDING IN ANOTHER MEMBER STATE , FULL REMISSION OF TAX ON EXPORTATION , UNTIL SUCH A SYSTEM HAS BEEN ESTABLISHED ARTICLE 95 OF THE TREATY PREVENTS AN IMPORTING MEMBER STATE FROM APPLYING ITS VAT RULES TO IMPORTED GOODS IN A MANNER CONTRARY TO THE PRINCIPLES EMBODIED IN THAT ARTICLE . CONSEQUENTLY , PENDING THE ADOPTION OF A LEGISLATIVE SOLUTION , IN CHARGING VAT ON IMPORTS ACCOUNT MUST BE TAKEN OF THE EFFECT OF ARTICLE 95 OF THE TREATY . IT IS THEREFORE FOR THE COURT TO LAY DOWN GUIDELINES COMPATIBLE WITH ARTICLE 95 OF THE TREATY , CONSISTENT WITH THE GENERAL SCHEME OF THE SIXTH DIRECTIVE AND SUFFICIENTLY SIMPLE TO BE ABLE TO BE APPLIED IN A UNIFORM MANNER THROUGHOUT THE MEMBER STATES .

2 . WHERE A MEMBER STATE CHARGES VAT ON THE IMPORTATION , FROM ANOTHER MEMBER STATE , OF GOODS SUPPLIED BY A PRIVATE PERSON , BUT DOES NOT CHARGE VAT ON THE SUPPLY BY A PRIVATE PERSON OF SIMILAR GOODS WITHIN ITS OWN TERRITORY , THE VAT PAYABLE ON IMPORTATION MUST BE CALCULATED BY TAKING INTO ACCOUNT THE AMOUNT OF VAT PAID IN THE MEMBER STATE OF EXPORTATION THAT IS STILL CONTAINED IN THE VALUE OF THE GOODS AT THE TIME OF IMPORTATION IN SUCH A WAY THAT THAT AMOUNT IS NOT INCLUDED IN THE TAXABLE AMOUNT AND IS IN ADDITION DEDUCTED FROM THE VAT PAYABLE ON IMPORTATION .

THE AMOUNT OF VAT PAID IN THE MEMBER STATE OF EXPORTATION THAT IS STILL CONTAINED IN THE VALUE OF THE GOODS AT THE TIME OF IMPORTATION IS EQUAL :

IN CASES IN WHICH THE VALUE OF THE GOODS HAS DECREASED BETWEEN THE DATE ON WHICH VAT WAS LAST CHARGED IN THE MEMBER STATE OF EXPORTATION AND THE DATE OF IMPORTATION : TO THE AMOUNT OF VAT ACTUALLY PAID IN THE MEMBER STATE OF EXPORTATION , LESS A PERCENTAGE REPRESENTING THE PROPORTION BY WHICH THE GOODS HAVE DEPRECIATED ;

IN CASES IN WHICH THE VALUE OF THE GOODS HAS INCREASED OVER THAT SAME PERIOD : TO THE FULL AMOUNT OF THE VAT ACTUALLY PAID IN THE MEMBER STATE OF EXPORTATION .