No L 102/18 Official Journal of the European Communities 5.5 95 COUNCIL DIRECTIVE 95/7/EC of 10 April 1995 amending Directive 77/388/EEC and introducing new simplification measures with regard to value added tax — scope of certain exemptions and practical arrangements for implementing them THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 99 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament, Having regard to the opinion of the Economic and Social Committee, . Whereas the operation of the internal market can be. improved by introducing’ common rules clarifying the scope of, and arrangements for, applying some of the exemptions provided for in Articles 14 (1), 15, point 2, and 16 (1) of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonization of the laws of the Member States relating to turnover taxes — common system of value added tax: uniform basis of assess- ment (') ; whereas the introduction of such common rules is provided for by the aforesaid Directive, and in par- ticular Articles 14 (2) and 16 (3) thereof; Whereas Article 3 of Council Directive 92/111/EEC of 14 December 1992 amending Directive 77/388/EEC and introducing simplification measures with regard to value added tax (3 provides for the adoption of special rules for the taxation of chain transactions between taxable persons ; - whereas such rules must ensure not only compliance with the principle of neutrality of the common system of value added tax as regards the origin of goods and services but also compliance with the choices made as to the principles governing value added tax and its monitoring arrangements during the transi- tional period; Whereas it is appropriate to include in the taxable amount on importation all ancillary costs arising from the transport of goods to any place of destination in the Community since that place is known at the time the importation is carried out; whereas, as a result, the () OJ No L 145, 13. 6. 1977, p. 1. Directive as last amended by Directive 94/76/EC (OJ No L 365, 31. 12. 1994, p. 53). @) OJ No L 384, 30. 12. 1992, p. 47. supplies of services in question enjoy the exemptions provided for in Article 14 (1) (i) of Directive 77/388/EEC ; Whereas Article 15 (2) of that Directive provides that the Commission shall submit to the Council proposals to establish Community tax rules specifying the scope of, and practical arrangements for implementing, the export exemptions applicable to supplies of goods carried in the personal luggage of travellers ; Whereas it is appropriate that the period serving as a basis for calculating the adjustments provided for by Article 20 (2) of the said Directive should be extended up to 20 years by Member States for immovable property acquired as capital goods, bearing in mind the duration of their economic life ; Whereas Member States should be enabled to maintain the rate applicable to goods after making up work which they carried out under a contract to make up work on 1 January 1993; Whereas the rules governing territorial application and the tax arrangements applicable in the field of intra- Community goods-transport services function in a simple and satisfactory manner for both traders and the author- ities in the Member States ; Whereas, by treating a transport operation within a Member State as an intra-Community goods-transport operation where it is directly linked to a transport opera- tion between Member States, it is possible to simplify not only the principles and arrangements for taxing those domestic transport services but also the rules applicable to ancillary services and to services supplied by intermedi- aries involved in the supply of these various services; Whereas the qualification of certain works on movable property as work carried out under a contract to make up work is a source of difficulty and should be eliminated ; Whereas, with a view to facilitating intra-Community trade in the field of work on movable tangible property, the tax arrangements applicable for these transactions should be modified when they are carried out for a person who is identified for value added tax purposes in a Member State other than that of their physical execution ;