Considerations on COM(2003)234 - Amendment of Directive 77/388/EEC as regards VAT on services provided in the postal sector - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2003)234 - Amendment of Directive 77/388/EEC as regards VAT on services provided in the postal sector. |
|---|---|
| document | COM(2003)234  |
| date | May 5, 2003 |
(2) The proper functioning of the internal market requires that wherever possible, such distortions be eliminated.
(3) The Commission is committed to a strategy of modernising and simplifying the operation of the VAT system within the context of the internal market i.
(4) As regards to the application of VAT to postal services all such services should be made taxable by treating them as goods transport services, thereby allowing postal operators to deduct input tax incurred on purchases. In consequence, overall net prices should decrease and any overall price increase arising from the introduction of VAT would be unlikely to be equal to the standard rate percentage applying in each Member State.
(5) In order to counter gross price increases in certain limited areas, for private consumers, it is appropriate to apply a reduced rate, which produces the same revenue effect as the current exemption. However, a reduced rate across the sector should not be introduced, since it would lead to greater instances of distortion.
(6) The place-of-supply-rules for letter post should be amended in order to reduce the possibilities for error or fraud, provide simplification and ensure that the Community system is comparable to other similar systems.
(7) In order to enhance the efficiency of a simplified accounting scheme for postal operators, it should be possible to treat postage stamps as goods but ignore them for tax purposes when they are supplied for the purpose of obtaining postal services.
(8) Given the differing levels of technology used by national postal operators, it should be left to Member States to design the most appropriate special accounting system.
(9) In principle, a refund of VAT would be available to postal operators established in third countries, under the Thirteenth Council Directive 86/560/EEC of 17 November 1986 on the harmonisation of laws of the Member States relating to turnover taxes - Arrangements for the refund of value added tax to taxable persons not established in the Community Territory. i However, given that the activities of some state owned postal operators might not be considered to be economic activities, thus preventing such refund, exemption with the right of deduction should be provided for any terminal dues within the meaning of Article 2(15) of Directive 97/67/EC of the European Parliament and of the Council of 15 December 1997 on common rules for the development of the internal market of Community postal services and the improvement of quality of service i, in respect of the distribution of incoming cross-border mail from third countries.
(10) Since the objectives of this Directive cannot be sufficiently achieved by the Member States for the above mentioned reasons and can therefore be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve those objectives.
(11) Directive 77/388/EEC should therefore be amended accordingly.