Value added tax VAT: taxation of agricultural outputs (amend. Direct. 77/388/EEC)

OBJECTIVE: consolidating fiscal equality in the internal market by eliminating distortions of competition which have arisen as a result of structural imbalances in the level of VAT rates currently applied by Member States to supplies of agricultural outputs. COMMUNITY MEASURE: Directive 96/42/EC amending Directive 77/388/EEC on the common system of Value Added Tax. SUBSTANCE: the Directive extends to all Member States, on a transitional basis, the option of applying a reduced rate to supplies of agricultural outputs of the floricultural and horticultural sectors (including bulbs, roots and the like, cut flowers and ornamental foliage) and wood for use as firewood. DATE OF ENTRY INTO FORCE: the Directive is applicable from 1 January 1995. �