Article 2
1. The VAT resources base shall be determined from the taxable transactions referred to in Article 2 of 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 assessment (7) as last amended by Decision 84/386/EEC (8), with the exception of transactions exempted under Articles 13 to 16 of that Directive. 2. For the purposes of applying paragraph 1, the following shall be taken into account for determining VAT resources: - transactions which, in accordance with Article 28 (2) of Directive 77/388/EEC, are subject to exemption with refund of the tax paid at the preceding stage, - transactions which Member States continue to subject to tax pursuant to Article 28 (3) (a) of Directive 77/388/EEC, - transactions which Member States continue to exempt pursuant to Article 28 (3) (b) of Directive 77/388/EEC, - transactions which are taxed under the right of option granted to taxable persons by Member States pursuant to Article 28 (3) (c) of Directive 77/388/EEC. 3. By way of derogation from paragraph 1, Member States shall have the option of leaving out of account, for the purpose of determining VAT resources, the transactions of taxable persons whose annual turnover, determined in accordance with the rules laid down in Article 24 (4) of Directive 77/388/EEC, does not exceed ECU 10 000 converted into national currency at the average rate for the financial year concerned; Member States may round upwards or downwards, by up to 10 %, the amounts which result from the conversion. TITLE III Method of calculation