Brussels, 06/01/2010 (Agence Europe) - At the end of December, the Council definitively adopted a draft directive amending the European Value Added Tax (VAT) system, extending the right of VAT deduction to mixed-use immovable property, that is, for both professional and private usage. Despite opposition from the European Parliament (see EUROPE 10028), the draft directive authorises member states to apply this right of deduction to other assets that form part of the company. The new directive extends the VAT system applicable to natural gas and electricity to the supply and import of gas through gas pipelines and transport vessels. Supply of heating and cooling by means of heating and cooling networks will be subject to the same tax rules as those that apply to the supply of natural gas and electricity. Joint ventures, funded by the EU under Community research and development programmes and not exercising any business activity, will enjoy the exemption provided for international bodies. Without this amendment, VAT on upstream purchases would unduly contribute to the revenue of the countries where these joint ventures were established. The new directive will become applicable on 1 January 2011. (M.B./transl.rt)