Sixth Council Directive of 17 May 1977 on the harmonization of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment (77/388/EEC)

Published date01 January 2006
Subject MatterValue added tax,Approximation of laws,Taxation,Internal market - Principles
Official Gazette PublicationOfficial Journal of the European Communities, L 145, 13 June 1977
Consolidated TEXT: 31977L0388 — EN — 01.01.2006

1977L0388 — EN — 01.01.2006 — 013.001

This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents

►B SIXTH COUNCIL DIRECTIVE of 17 May 1977 on the harmonization of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment (77/388/EEC) (OJ L 145 13.6.1977, p. 1)

Amended by:

Official Journal
No page date
M1 ELEVENTH COUNCIL DIRECTIVE of 26 March 1980 (80/368/EEC) L 90 41 3.4.1980
►M2 TENTH COUNCIL DIRECTIVE of 31July 1984 (84/386/EEC) L 208 58 3.8.1984
►M3 EIGHTEENTH COUNCIL DIRECTIVE of 18 July 1989 (89/465/EEC) L 226 21 3.8.1989
►M4 COUNCIL DIRECTIVE of 16 December 1991 (91/680/EEC) L 376 1 31.12.1991
►M5 COUNCIL DIRECTIVE 92/77/EEC of 19 October 1992 L 316 1 31.10.1992
►M6 COUNCIL DIRECTIVE 92/111/EEC of 14 December 1992 L 384 47 30.12.1992
►M7 COUNCIL DIRECTIVE 94/4/EC of 14 February 1994 L 60 14 3.3.1994
►M8 COUNCIL DIRECTIVE 94/5/EC of 14 February 1994 L 60 16 3.3.1994
►M9 COUNCIL DIRECTIVE 94/76/EC of 22 December 1994 L 365 53 31.12.1994
►M10 COUNCIL DIRECTIVE 95/7/EC of 10 April 1995 L 102 18 5.5.1995
►M11 COUNCIL DIRECTIVE 96/42/EC of 25 June 1996 L 170 34 9.7.1996
M12 COUNCIL DIRECTIVE 96/95/EC of 20 December 1996 L 338 89 28.12.1996
►M13 COUNCIL DIRECTIVE 98/80/EC of 12 October 1998 L 281 31 17.10.1998
►M14 COUNCIL DIRECTIVE 1999/49/EC of 25 May 1999 L 139 27 2.6.1999
►M15 COUNCIL DIRECTIVE 1999/59/EC of 17 June 1999 L 162 63 26.6.1999
►M16 COUNCIL DIRECTIVE 1999/85/EC of 22 October 1999 L 277 34 28.10.1999
►M17 COUNCIL DIRECTIVE 2000/17/EC of 30 March 2000 L 84 24 5.4.2000
►M18 COUNCIL DIRECTIVE 2000/65/EC of 17 October 2000 L 269 44 21.10.2000
►M19 COUNCIL DIRECTIVE 2001/4/EC of 19 January 2001 L 22 17 24.1.2001
►M20 COUNCIL DIRECTIVE 2001/115/EC of 20 December 2001 L 15 24 17.1.2002
►M21 COUNCIL DIRECTIVE 2002/38/EC of 7 May 2002 L 128 41 15.5.2002
M22 COUNCIL DIRECTIVE 2002/93/EC of 3 December 2002 L 331 27 7.12.2002
►M23 COUNCIL DIRECTIVE 2003/92/EC of 7 October 2003 L 260 8 11.10.2003
►M24 COUNCIL DIRECTIVE 2004/7/EC of 20 January 2004 L 27 44 30.1.2004
M25 COUNCIL DIRECTIVE 2004/15/EC of 10 February 2004 L 52 61 21.2.2004
►M26 COUNCIL DIRECTIVE 2004/66/EC of 26 April 2004 L 168 35 1.5.2004
►M27 COUNCIL DIRECTIVE 2005/92/EC of 12 December 2005 L 345 19 28.12.2005
►M28 COUNCIL DIRECTIVE 2006/18/EC of 14 February 2006 L 51 12 22.2.2006

Amended by:

A1 ACT concerning the conditions of accession of the Hellenic Republic and the adjustments to the Treaties L 291 17 19.11.1979
►A2 ACT concerning the conditions of accession of the Kingdom of Spain and the Portuguese Republic and the adjustments to the Treaties L 302 23 15.11.1985
►A3 ACT concerning the conditions of accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic and the adjustments to the Treaties on which the European Union is founded L 236 33 23.9.2003

Corrected by:

►C1 Corrigendum, OJ L 272, 17.9.1992, p. 72 (91/680)
►C2 Corrigendum, OJ L 197, 6.8.1993, p. 57 (92/111)
C3 Corrigendum, OJ L 026, 27.1.2001, p. 40 (2001/41/EC)
C4 Corrigendum, OJ L 018, 23.1.2003, p. 55 (2002/92/EC)

NB: This consolidated version contains references to the European unit of accout and/or the ecu, which from 1 January 1999 should be understood as references to the euro — Council Regulation (EEC) No 3308/80 (OJ L 345, 20.12.1980, p. 1) and Coundil Regulation (EC) No 1103/97 (OJ L 162, 19.6.1997, p. 1).



of 17 May 1977

on the harmonization of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment



Having regard to the Treaty establishing the European Economic Community, and in particular Articles 99 and 100 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament ( 1 ),

Having regard to the opinion of the Economic and Social Committee ( 2 );

Whereas all Member States have adopted a system of value added tax in accordance with the first and second Council Directives of 11 April 1967 on the harmonization of the laws of the Member States realting to turnover taxes ( 3 );

Whereas the Decision of 21 April 1970 on the replacement of financial contributions from Member States by the Communities' own resources ( 4 ) provides that the budget of the Communities shall, irrespective of other revenue, be financed entirely from the Communities' own resources; whereas these resources are to include those accruing from value added tax and obtained by applying a common rate of tax on a basis of assessment determined in a uniform manner according to Community rules;

Whereas further progress should be made in the effective removal of restrictions on the movement of persons, goods, services and capital and the integration of national economies;

Whereas account should be taken of the objective of abolishing the imposition of tax on the importation and the remission of tax on exportation in trade between Member States; whereas it should be ensured that the common system of turnover taxes is non-discriminatory as regards the origin of goods and services, so that a common market permitting fair competition and resembling a real internal market may ultimately be achieved;

Whereas, to enhance the non-discriminatory nature of the tax, the term ‘taxable person’ must be clarified to enable the Member States to extend it to cover persons who occasionally carry out certain transactions;

Whereas the term ‘taxable transaction’ has led to difficulties, in particular as regards transactions treated as taxable transactions; whereas these concepts must be clarified;

Whereas the determination of the place where taxable transactions are effected has been the subject of conflicts concerning jurisdiction as between Member States, in particular as regards supplies of goods for assembly and the supply of services; whereas although the place where a supply of services is effected should in principle be defined as the place where the person supplying the services has his principal place of business, that place should be defined as being in the country of the person to whom the services are supplied, in particular in the case of certain services supplied between taxable persons where the cost of the services is included in the price of the goods;

Whereas the concepts of chargeable event and of the charge to tax must be harmonized if the introduction and any subsequent alterations of the Community rate are to become operative at the same time in all Member States;

Whereas the taxable base must be harmonized so that the application of the Community rate to taxable transactions leads to comparable results in all the Member States;

Whereas the rates applied by Member States must be such as to allow the normal deduction of the tax applied at the preceding stage;

Whereas a common list of exemptions should be drawn up so that the Communities own resources may be collected in a uniform manner in all the Member States;

Whereas the rules governing deductions should be harmonized to the extent that they affect the actual amounts collected; whereas the deductible proportion should be calculated in a similar manner in all the Member States;

Whereas it should be specified which persons are liable to pay tax, in particular as regards services supplied by a person established in another country;

Whereas the obligations of taxpayers must be harmonized as far as possible so as to ensure the necessary safeguards for the collection of taxes in a uniform manner in all the Member States; whereas taxpayers should, in particular, make a periodic aggregate return of their transactions, relating to both inputs and outputs where this appears necessary for establishing and monitoring the basis of assessment of own resources;

Whereas Member States should nevertheless be able to retain their special schemes for small undertakings, in accordance with common provisions, and with a view to closer harmonization; whereas Member States should remain free to apply a special scheme involving flat rate rebates of input value added tax to farmers not covered by normal schemes; whereas the basic principles of this scheme should be established and a common method adopted for calculating the value added of these farmers for the purposes of collecting own resources;

Whereas the uniform application of the provisions of this Directive should be ensured; whereas to this end a Community procedure for consultation should be laid down; whereas the setting up of a Value Added Tax Committee would enable the Member States and the Commission to cooperate closely;

Whereas Member States should be able, within certain limits and subject to certain conditions, to take or retain special measures derogating from this Directive in order to simplify the levying of tax or to avoid fraud or tax avoidance;

Whereas it might appear appropriate to authorize Member States to conclude with non-member countries or international organizations agreements containing derogations from this Directive;

Whereas it is vital to provide for a transitional period to...

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