51994PC0584

Proposal for a Council Directive amending Directive 77/388/EEC on the common system of value added tax (taxation of agricultural outputs) (94/C 389/14) COM(94) 584 final - 94/0324(CNS)

(Submitted by the Commission on 13 December 1994)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 99 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Whereas Article 12 (3) (d) of Directive 77/388/EEC (1), as last amended by Directive 94/5/EC (2), lays down that the rules concerning the taxation of agricultural outputs other than those falling within category 1 of Annex H are to be decided unanimously by the Council before 31 December 1994 on the basis of a Commission proposal; whereas until that date, those Member States which had already been applying a reduced rate might continue to do so while those applying a standard rate could not apply a reduced rate; whereas that allowed a two-year postponement in the application of the standard rate;

Whereas experience has shown that the structural imbalance in the VAT rates applicable by Member States to agricultural outputs of the floricultural and horticultural sectors has led to reported cases of fraudulent activities; whereas that structural imbalance is a direct result of the application of Article 12 (3) (d) and should be redressed accordingly;

Whereas the most appropriate solution would be to extend to all Member States, on a transitional basis, the option of applying a reduced rate to supplies of agricultural outputs of the floricultural and horticultural sectors and of wood used as firewood,

HAS ADOPTED THIS DIRECTIVE:

Article 1

Directive 77/388/EEC is hereby amended as follows:

1. Article 12 (3) (d) is deleted.

2. The following indent is inserted in Article 28 (2):

'(g) Member States may apply a reduced rate to supplies of live trees and other plants (including bulbs, roots and the like, cut flowers and ornamental foliage) and wood for use as firewood.`

The present indent (g) becomes indent (h).

Article 2

1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 1 January 1995 at the latest. They shall fortwith inform the Commission thereof.

When Member States adopt these provisions, these shall contain a reference to this Directive or shall be accompanied by such reference at the time of their official publication. The procedure for such reference shall be adopted by Member States.

2. Member States shall communicate to the Commission the text of the provisions of domestic law which they adopt in the field covered by this Directive.

Article 3

This Directive shall enter into force on the day of its publication in the Official Journal of the European Communities.

Article 4

This Directive is addressed to the Member States.

(1) OJ No L 145, 13. 6. 1977, p. 1.

(2) OJ No L 60, 3. 3. 1994, p. 16.