In order to guarantee an adequate representation of SMEs, a fixed allowance should be provided for those participating in the work of the EPG who are employed by an SME.

Except where the place of residence of a SNE is 150 km or less from the place of secondment, he shall, where appropriate, receive an additional flat-rate allowance equal to the difference between the gross annual salary (less family allowances) paid by his employer plus the subsistence allowances paid by the GSC and the basic salary payable to an official in step 1 of grade A 8 or grade B 5, depending on the category to which he is assimilated.

On application to the financial authorities, they later receive a refund calculated as a flat-rate percentage(41) applied to their sales in compensation for the VAT which they have paid on their purchases.

and/or VAT other than that mentioned under (i), paid on purchases for which farmers subject to the flat-rate system are not fully compensated via the selling price or via reimbursement.

While accepting that reimbursements by way of daily allowances could be based on actual costs incurred rather than on a flat-rate arrangement, the Council nevertheless considers that, for practical reasons, the present system should be retained,

The difference between the flat-rate compensation granted to farmers who are subject to the flat-rate systems and the VAT which they would have been able to deduct if they had been subject to the standard VAT system represents over- or under-compensation.

The difference between the deductible VAT which agricultural units under the flat-rate system could have deducted, if they had been subject to the standard VAT scheme, and the flat-rate compensation represents VAT over-compensation or under-compensation.

A financial correction may include application of flat rate corrections in cases where controls have not correctly been established or executed by the Sapard agency and refusal of compensation of the foreseen financial correction with expenditure for other projects.

In this case, the taxable person to whom the goods or services are supplied shall be authorized, following the procedure laid down by the Member States, to deduct from the value added tax for which he is liable, the amount of the flat-rate compensation has paid to the flat-rate farmers;

The Member States shall fix the standard value to be used in calculating the flat-rate compensation and the advances relating thereto, broken down according to the destination of the products withdrawn as referred to in Article 1(b), (c), and (d) of Regulation (EEC) No 1501/83.

In addition, in calculating the amount of the refund for products listed in sections (a), (c) and (d) of the Annex, and in section (b) under subheadings 0202 20 30, 0202 20 50, 0202 20 90, 0202 30 and 0206 29 91, the flat-rate coefficients set for each of the products concerned may be taken into account.

In that event, the taxable purchaser or customer shall be authorized, as provided for in Article 17 and in accordance with the procedures laid down by the Member States, to deduct from the tax for which he is liable within the territory of the country the amount of the flat-rate compensation he has paid to flat-rate farmers.

Whereas, to avoid confusion and to facilitate the applicaton of the system of compensatory aid for loss of income from marketing, the value in ecus of the flat-rate reference income fixed in Article 2 (2) of Regulation (EEC) No 1858/93 should be replaced with effect from the start of the marketing period which covers the months of March and April 1995;

Whereas, in accordance with the Commission's undertaking when the Council adopted decisions concerning various agricultural products for the 1998/99 marketing year and the new import arrangements were adopted for bananas, the flat-rate reference income should be increased in order to fix compensation for 1998 and from 1999 onwards;

Nevertheless, the Commissioner responsible for enterprise policy may decide that members, observers or experts who are employed by a small or medium-sized enterprise(2), may also be compensated for the costs resulting from preparatory work and of being away from their enterprise, by a fixed allowance of EUR 500 a day, to a maximum of 10 days a year.

The revenue collected by a Member State shall be corrected if the flat-rate compensation percentage fixed pursuant to Article 25 (3) of Directive 77/388/EEC applicable to transactions carried out by flat-rate farmers does not correspond to the percentage of the input VAT charge which was actually applied to such transactions with the exception of that relating to consumption on the farm and direct sales to final consumers during the year in question.

In order to calculate the weighting of the various rates as referred to in Article 3, the Member State shall break down, by VAT rate applied, all transactions which are taxable under its national legislation and which do not entitle the customer to deduction of VAT, account being taken of Article 17 of Directive 77/388/EEC, and consumption on the farm by flat-rate farmers and their direct sales to final consumers.

In the interests of harmonisation and simplification, the procedures required in the context of flat-rate aid should be the same as those which apply to financial compensation and carry-over aid, as set out in Commission Regulation (EC) No 2509/2000 of 15 November 2000 laying down detailed rules for the application of Council Regulation (EC) No 104/2000 as regards granting financial compensation for withdrawals of certain fishery products(3) and Commission Regulation (EC) No 2814/2000 of 21 December 2000 laying down the detailed rules for the application of Council Regulation (EC) No 104/2000 as regards the grant of carry-over aid for certain fishery products(4).