Legal provisions of COM(2021)626 - Authorisation of Estonia to derogate from Article 26(1), point (a), and Articles 168 and 168a of the VAT Directive - Main contents

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dossier	COM(2021)626 - Authorisation of Estonia to derogate from Article 26(1), point (a), and Articles 168 and 168a of the VAT Directive.
document	COM(2021)626
date	November 15, 2021

Article 1
Article 2
Article 3
Article 4
Article 5

Article 1

By way of derogation from Articles 168 and 168a of Directive 2006/112/EC, Estonia is authorised to limit to 50 % the right to deduct the value added tax on expenditure on passenger cars not wholly used for business purposes where that expenditure covers the purchase, leasing, intra-Community acquisition or importation of passenger cars not wholly used for business purposes, as well as on expenditure related to the maintenance and repair of such cars and to the purchase of fuel for them.

Article 2

By way of derogation from Article 26(1), point (a), of Directive 2006/112/EC, Estonia shall not treat as supplies of services for consideration the use for non-business purposes of a passenger car included in the assets of a taxable person’s business, where that car has been subject to a limitation authorised under Article 1 of this Decision.

Article 3

1. This Decision shall only apply to passenger cars with a maximum authorised weight not exceeding 3 500 kilograms and having not more than eight seats in addition to the driver’s seat.

2. This Decision shall not apply to the following categories of passenger cars:

(a)cars purchased for resale, hire or lease;

(b)cars used for transportation of passengers for a fee, including taxi services;

(c)cars used for the provision of driving lessons.

Article 4

This Decision shall expire on 31 December 2024. Any request for the extension of the authorisation provided for in this Decision shall be submitted to the Commission by 31 March 2024 and shall be accompanied by a report which includes a review of the percentage set out in Article 1.

Article 5