Legal provisions of COM(2004)400 - Authorisation of the United Kingdom to derogate from Article 11 of the Sixth Directive 77/388/EEC on the harmonisation of the laws of the Member States relating to turnover taxes

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dossier COM(2004)400 - Authorisation of the United Kingdom to derogate from Article 11 of the Sixth Directive 77/388/EEC on the harmonisation of ...
document COM(2004)400 EN
date October 21, 2004

Contents

Article 1

By way of derogation from Article 11(A)(1)(a) of Directive 77/388/EEC, the United Kingdom is hereby authorised, until 31 December 2009, in the case of a supply of services consisting in the use of a motor car, where the supplier and the recipient are connected persons in the motor trade, to treat the open market value of that supply as the taxable amount.

Article 2

Article 1 shall apply only if the following conditions are met:

(a)the supplier has the right to deduct, in whole or in part, the value added tax applied to the motor car;

(b)the recipient is not a fully taxable person and is linked to the supplier by employment ties specified in national legislation;

(c)it is reasonable to conclude from the circumstances of the case that the employment ties referred to in point (b) have influenced the taxable amount, as determined in accordance with Article 11(A)(1)(a) of Directive 77/388/EEC.

Article 3

This Decision is addressed to the United Kingdom of Great Britain and Northern Ireland.