Considerations on COM(2007)746 - Implementing measures for the VAT Directive, as regards the treatment of insurance and financial services - Main contents
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dossier | COM(2007)746 - Implementing measures for the VAT Directive, as regards the treatment of insurance and financial services. |
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document | COM(2007)746 ![]() |
date | November 28, 2007 |
(2) Directive 2006/112/EC has been amended by Directive 20XX/XXX/EC as regards the treatment of insurance and financial services in order to reflect developments in the financial services market. In order to ensure a uniform application of Article 135(1)(a) to (g) and Article 135a of Directive 2006/112/EC and to develop a uniform understanding of whether a given supply is exempt under those provisions, it should be made clear which services are covered by, and which services are excluded from, the categories referred to in points (a) to (g) of Article 135(1) of that Directive.
(3) It is appropriate to lay down rules in response to specific questions of application in order to bring consistency of treatment throughout the Community to those questions. Clarification should be provided in respect of services covered by Article 135(1)(a) to (g) and (1a) of Directive 2006/112/EC. In light of the complexity of the financial services markets and the continued development of new products, the enumeration of cases which are covered by or excluded from the exemptions should not be exhaustive.
(4) There is uncertainty as to the VAT treatment of certain services which form a distinct whole whilst also being a constituent element of an insurance or financial service. It is therefore appropriate to specify certain services which have the specific and essential character of the exempt services concerned and others which do not. In the light of the criteria developed in the case-law of the Court of Justice of the European Communities, regard should be had to whether the services in question change the financial or legal situation of the parties to an exempt transaction or whether by contrast they are mere material or technical supplies.
(5) In accordance with the principle of proportionality, it is necessary and appropriate in order to achieve the objective of ensuring a more uniform application of the current value added tax system to lay down rules implementing Article 135(1)(a) to (g) and (1a) and Article 135a of Directive 2006/112/EC. This Regulation does not go beyond what is necessary in order to achieve the objectives pursued, in accordance with the third paragraph of Article 5 of the Treaty.
(6) It is appropriate and necessary that Directive 20XX/XXX/EC and this Regulation apply from the same date.