Keywords
Summary

Keywords

TAX PROVISIONS - HARMONIZATION OF LAWS - TURNOVER TAXES - COMMON SYSTEM OF VALUE-ADDED TAX - TAXABLE AMOUNT - TRADE-IN OF SECOND-HAND GOODS BY WAY OF PART-PAYMENT - NATIONAL RULES PROVIDING THAT THE VALUE OF THE GOODS TRADED IN IS NOT PART OF THE TAXABLE AMOUNT - PERMISSIBILITY - CONDITIONS

( COUNCIL DIRECTIVE NO 77/388 , ARTS 11 A 1 ( A ) AND 32 )

Summary

A NATIONAL SYSTEM OF VALUE-ADDED TAX WHICH WAS IN EXISTENCE WHEN THE SIXTH DIRECTIVE ON THE HARMONIZATION OF THE LAWS OF THE MEMBER STATES RELATING TO TURNOVER TAXES ENTERED INTO FORCE AND WHICH , AS REGARDS THE DETERMINATION OF THE TAXABLE AMOUNT IN THE CASE OF THE SUPPLY OF MOVABLE GOODS WHERE SECOND-HAND GOODS ARE TRADED IN , PROVIDES THAT THE VALUE OF THE TRADE-IN IS NOT INCLUDED IN THE CONSIDERATION PAYABLE BY THE PURCHASER , DOES NOT INFRINGE ARTICLE 11 A 1 ( A ) OF THE DIRECTIVE BECAUSE IT IS IN PRINCIPLE COVERED BY ARTICLE 32 OF THE SAME DIRECTIVE , WHICH PENDING THE INTRODUCTION OF A COMMON SYSTEM OF TAXATION OF SECOND-HAND GOODS RE-ESTABLISHING COMPETITIVE NEUTRALITY IN SALES OF SUCH GOODS BETWEEN DIRECT SALES FROM ONE CONSUMER TO ANOTHER AND TRANSACTIONS THROUGH COMMERCIAL CHANNELS , AUTHORIZES MEMBER STATES TO RETAIN NATIONAL SYSTEMS HAVING THE SAME OBJECTIVE . THE OBJECT AND EFFECT OF SUCH A SYSTEM IS TO OFFSET THE RESIDUAL PART OF THE VAT ALREADY BORNE BY THE SECOND-HAND GOODS TRADED IN , SO THAT ON RESALE THOSE GOODS MAY BE SUBJECT TO THE GENERAL SYSTEM OF VAT , AND IS NOT TO EXEMPT FROM TAX PART OF THE CONSIDERATION OBTAINED BY THE TAXABLE PERSON WISHING TO RESELL FOR THE SUPPLY OF THE NEW GOODS .