Article 28f Sixth Directive 77/388/EEC

1.Article 17 (2), (3) and (4) shall be replaced by the following:

1.‘2. In so far as the goods and services are used for the purposes of his taxable transactions, the taxable person shall be entitled to deduct from the tax which he is liable to pay:

(a)value added tax due or paid within the territory of the country in respect of goods or services supplied or to be supplied to him by another taxable person;

(b)value added tax due or paid in respect of imported goods within the territory of the country;

(c)value added tax due pursuant to Articles 5 (7) (a), 6 (3) and 28a (6);

(d)value added tax due pursuant to Article 28a (1) (a).

1.3. Member States shall also grant every taxable person the right to the deduction or refund of the value added tax referred to in paragraph 2 in so far as the goods and services are used for the purposes of:

(a)transactions relating to the economic activities referred to in Article 4 (2), carried out in another country, which would be deductible if they had been performed within the territory of the country;

(b)transactions which are exempt pursuant to Article 14(1)(g) and (i), 15, 16(1) (B), (C), (D) or (E) or (2) or 28c (A) and (C);

(c)any of the transactions exempt pursuant to Article 13 (B) (a) and (d) (1) to (5), when the customer is established outside the Community or when those transactions are directly linked with goods to be exported to a country outside the Community.

1.4. The refund of value added tax referred to in paragraph 3 shall be effected:

—to taxable persons who are not established within the territory of the country but who are established in another Member State in accordance with the detailed implementing rules laid down in Directive 79/1072/EEC ⁹,

—to taxable persons who are not established within the territory of the Community, in accordance with the detailed implementing rules laid down in Directive 86/560/EEC ¹⁰.’

For the purposes of applying the above:

(a)the taxable persons referred to in Article 1 of Directive 79/1072/EEC shall also be considered for the purposes of applying the said Directive as taxable persons who are not established in the country when, inside the territory of the country, they have only carried out supplies of goods and services to a person who has been designated as the person liable to pay the tax in accordance with Article 21 (1)(a) and (c);

(b)the taxable persons referred to in Article 1 of Directive 86/560/EEC shall also be considered for the purposes of applying the said Directive as taxable persons who are not established in the Community when, inside the territory of the country, they have only carried out supplies of goods and services to a person who has been designated as the person liable to pay the tax in accordance with Article 21 (1) (a);

(c)Directives 79/1072/EEC and 86/560/EEC shall not apply to supplies of goods which are, or may be, exempted under Article 28c (A) when the goods supplied are dispatched or transported by the acquirer or for his account.

2.Article 18 (1) shall be replaced by the following:

2.‘1. To exercise his right of deduction, a taxable person must:

(a)in respect of deductions pursuant to Article 17 (2) (a), hold an invoice drawn up in accordance with Article 22 (3);

(b)in respect of deductions pursuant to Article 17 (2) (b), hold an import document specifying him as consignee or importer and stating or permitting the calculation of the amount of tax due;

(c)in respect of deductions pursuant to Article 17 (2) (c), comply with the formalities established by each Member State;

(d)when he is required to pay the tax as a customer or purchaser where Article 21 (1) applies, comply with the formalities laid down by each Member State;

(e)in respect of deductions pursuant to Article 17 (2) (d), set out in the declaration provided for in Article 22 (4) all the information needed for the amount of the tax due on his intra-Community acquisitions of goods to be calculated and hold an invoice in accordance with Article 22 (3).’

3.The following paragraph shall be inserted in Article 18:

‘3a. Member States may authorize a taxable person who does not hold an invoice in accordance with Article 22 (3) to make the deduction referred to in Article 17 (2) (d); they shall determine the conditions and arrangements for applying this provision.’