(Consultation procedure)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2005)0334)(1),

–   having regard to Article 93 of the EC Treaty, pursuant to which the Council consulted Parliament (C6-0322/2005),

–   having regard to Rule 51 of its Rules of Procedure,

–   having regard to the report of the Committee on Economic and Monetary Affairs and the opinion of the Committee on Culture and Education (A6-0153/2006),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

3.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4.  Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;

5.  Instructs its President to forward its position to the Council and the Commission.

Text proposed by the Commission   Amendments by Parliament Amendment 1 RECITAL 1 (1)  The realisation of the internal market, globalisation, deregulation and technology change have all combined to create enormous changes in the volume and pattern of trade in services. It is increasingly possible for a number of services to be supplied at a distance. In response, piecemeal steps have been taken to address this over the years and many defined services are in fact at present taxed on the basis of the destination principle. (1)  The realisation of the internal market, globalisation, deregulation and technology change have all combined to create enormous changes in the volume and pattern of trade in services. It is increasingly possible for a number of services, such as electronically delivered services and telecommunication services, to be supplied at a distance. In response, piecemeal steps have been taken to address this over the years and many defined services are in fact at present taxed on the basis of the destination principle. Amendment 2 RECITAL 6 (6)  In certain circumstances, the general rules as regards the place of supply of services for both taxable and non-taxable persons are not applicable and specified exclusions apply. These exclusions should be largely based on existing criteria and reflect the principle of taxation at the place of consumption, while not imposing disproportionate administrative burdens upon certain traders. (6)  In certain circumstances, the general rules as regards the place of supply of services for both taxable and non-taxable persons are not applicable and specified exclusions apply. These exclusions should be largely based on existing criteria and reflect the principle of taxation at the place of consumption, while not imposing disproportionate administrative burdens upon certain traders, and this requires value added tax obligations to be simplified by measures such as the introduction of a 'one-stop scheme'. Amendment 3 RECITAL 8 A (new) (8a) In order to ensure the proper application of VAT on services that are subject to the reverse charge mechanism, the data collected by the Member State where the supplier is established should be communicated to the Member State where the recipient is established. Council Regulation (EC) No 1798/2003 of 7 October 2003 on administrative cooperation in the field of value added tax1 should provide for such communication and should be amended accordingly. The adoption of this Directive is closely linked to the necessary amendments of Regulation (EC) No 1798/2003, as well as to the effective modification of the VAT information exchange system (VIES) in order to include services in the exchange of information. ____ 1 OJ L 264, 15.10.2003, p. 1. Amendment 4 ARTICLE 1, POINT 1 Article 6, paragraph 6 (Directive 77/388/EEC) (6)  Where a single legal entity has more than one fixed establishment, services rendered between establishments shall not be treated as supplies. deleted Amendment 5 ARTICLE 1, POINT 2 Article 9, paragraph 3 (Directive 77/388/EEC) 3.  For the purposes of paragraphs 1 and 2, where a person is a taxable person who also performs activities or transactions that are not considered to be taxable supplies of goods and services, he shall be deemed to be a taxable person in respect of all services supplied to him except where the services are for his own private use or that of his staff. 3.  For the purposes of paragraphs 1 and 2, where a person is a taxable person who also performs activities or transactions that are not considered to be taxable supplies of goods and services, he shall be deemed to be a taxable person in respect of all services supplied to him. Amendment 6 ARTICLE 1, POINT 2 Article 9g, paragraph 1, point (c) (Directive 77/388/EEC) (c) radio and television broadcasting services; (c) linear and non-linear radio, television, and other audiovisual media services;

(1) Not yet published in OJ.