
Article 1 

1. In compiling national accounts aggregates for the purpose of Regulation (EC, Euratom) No 1287/2003, repayments of VAT incurred on purchases, made to non-taxable persons or to taxable persons for their exempt activities, shall be treated in ESA95 as other current transfers (D7) or capital transfers (D9), and not as if they were deductible VAT.
2. For the purposes of paragraph 1, the term ‘taxable person’ shall have the meaning given to it by Article 4 of the Sixth Directive 77/388/EEC, Euratom, and the notion of exempt activities shall be understood as being the activities listed in Article 13 of that Directive.
Article 2 
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 26 January 2005.
For the Commission
Joaquín ALMUNIA
Member of the Commission