Report from the Commission to the Council presented in accordance with Article 2 of the Council Decision 89/488/EEC of 28 July 1989. Application of a measure derogating from Article 17(2) of the sixth Directive 77/388/EEC on the harmonization of the laws of the Member States relating to turnover taxes. Proposal for a Council Decision authorizing the French Republic to extend the application of a measure derogating from Article 17(2) of the sixth Council Directive 77/388/EEC on the harmonization of the laws of the Member States relating to turnover taxes.

Abstract

ay Council :Dec.i·sion -89 /'48Boj:EEC of 28 July 1.989,1 the :French Republi!c was authori•ed ·on the basis of Aiticle 27 of the sixth VAT Directive, still in 'force, to derogate from Article 17·(2) of the sixth VAT Directive. The-derogation consists in excluding altogether from the right to deduct VAT previously charged ·expenditure in respect of goods and .services in cases where private use of 'those _goods and ser.vices accounts .for more than 90% of ·.their ·total use. The Council 'Decision authorizes application of that derogation until 31 :December 1992. Ar.t'ic1e ·2 .st·ipulates that the Commiss-ion is ;to present to ';the :council., ·prior to the date of expir:y O:f the derogation, a -r~port on its applicat-ion, ·accompanied, .if ·appropriate, by a proposal for a Council Decisi:on authorizing i:ts extension. Th·e pur,pose o"f .the present r.~port :i;s .to ·give .an account of the 'application o.f the derogation. and ·to ex·amine the application for an ·extension submitted ··by ·,the French .Republic by .letter registered by t·he Secretariat-General of ·the ~commiss.ion on :2·2 i.bc;tober 199.2·.