Legal provisions of COM(2005)285 - Authorisation of the Netherlands to derogate from Article 11 of the Sixth Council Directive 77/388/EEC on the harmonisation of the laws of the Member States relating to turnover taxes

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dossier COM(2005)285 - Authorisation of the Netherlands to derogate from Article 11 of the Sixth Council Directive 77/388/EEC on the harmonisation ...
document COM(2005)285 EN
date February 27, 2006

Contents

Article 1

By way of derogation from Article 11(A)(1)(a) of Directive 77/388/EEC, the Kingdom of the Netherlands is hereby authorised to take the open-market value, as defined in Article 11(A)(1)(d) of Directive 77/388/EEC, as the taxable amount for the supply of capital items or any other supply of services whereby the capital item is put at the disposal of the recipient, where the following conditions are met:

1.the recipient does not have the right to full or almost full deduction of VAT;

2.the supplier and the recipient are directly or indirectly connected persons according to national legislation;

3.facts make it possible to conclude from the circumstances of the case that the relationship between those connected persons has influenced the taxable amount, as determined in accordance with Article 11(A)(1)(a) of Directive 77/388/EEC.

For the purposes of this Article, capital item shall mean capital goods as defined by the Kingdom of the Netherlands in accordance with Article 20(4) of Directive 77/388/EEC and, as far as they are not covered by this definition, services of substantial value which can be amortised.

Article 2

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 linked to the taxable amount, or on 31 December 2009, whichever is the earlier.

Article 3

This Decision is addressed to the Kingdom of the Netherlands.