THE RELEVANT EXCHANGE OF EU COMMON SYSTEM OF VAT

The Council of the European Union Council adopted Council Directive 2006/112/EC whereby repealed Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment (The Sixth Directive). The Sixth Directive has been significantly amended on several occasions and for reasons of clarity and rationalisation that Directive should been recasted. Directive 2006/112/EC recast debugged text of the repealed directive and enter new change in the incorporate provisions presented in a clear and rational manner The concept of „taxable transaction“ should therefore be clarified, and the term „taxable person“ is defined in such a way that the Member States may use it to cover persons who occasionally carry out certain transactions. The supply of electricity and gas at the final stage, that is to say, from traders and distributors to the final consumer, should be taxed at the place where the customer actually uses and consumes the goods. The application of the normal VAT rules to gold constitutes a major obstacle to its use for financial investment purposes and therefore justifies the application of a special tax scheme, with a view also to enhancing the international competitiveness of the Community gold market