Considerations on COM(2023)463 - Amendment of Implementing Decision (EU) 2018/485 as regards an extension of the authorisation for Denmark to derogate from Article 75 of the VAT Directive - Main contents
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| dossier | COM(2023)463 - Amendment of Implementing Decision (EU) 2018/485 as regards an extension of the authorisation for Denmark to derogate from ... |
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| document | COM(2023)463  |
| date | September 25, 2023 |
(2)By letter registered with the Commission on 21 March 2023, Denmark requested an authorisation in accordance with Article 395(2), first subparagraph, of Directive 2006/112/EC to continue to apply the special measure beyond 31 December 2023.
(3)By letters dated 3 May 2023 and 4 May 2023, the Commission transmitted the request submitted by Denmark to the other Member States in accordance with Article 395(2), second subparagraph, of Directive 2006/112/EC. By letter dated 5 May 2023, the Commission notified Denmark that it had all the information necessary for appraisal of the request.
(4)The continued application of the special measure would allow taxable persons who have registered a vehicle only for business purposes to use the vehicle for private purposes, and to calculate the taxable amount of the deemed supply of services pursuant to Article 75 of Directive 2006/112/EC on a daily flat-rate basis, rather than lose their right to deduct the VAT incurred on the purchase cost of the vehicle.
(5)That simplified calculation method should, however, be limited to 20 days of use for private purposes for each calendar year.
(6)According to the information provided by Denmark in its request, the factual situation which justified the application of the special measure has not changed. Denmark submitted to the Commission, together with the request, a report reviewing the flat-rate amount to be paid per day for the use of the vehicle for private purposes. According to that report, Denmark maintains that the amount of VAT collectable per day remains unchanged at DKK 40.
(7)Denmark indicates that the special measure has worked very well in the last years and has been taken up by an increasing number of taxable persons. Denmark also maintains that the special measure aims to simplify the VAT obligations of taxable persons who make occasional use for private purposes of a vehicle that was registered only for business purposes, thereby simplifying the procedure for collecting VAT. However, it would remain possible for a taxable person to choose to register a light goods vehicle as being used for both business and private purposes. In doing so, the taxable person would lose the right to deduct the VAT incurred on the purchase cost of the vehicle but would not be required to pay a daily charge for any use for private purposes.
(8)Authorising a measure which ensures that a taxable person who makes occasional use for private purposes of a vehicle registered only for business purposes is not deprived of the full right to deduct the input VAT on that vehicle is consistent with the general rules on deduction as set out in Directive 2006/112/EC.
(9)It is therefore appropriate to extend the authorisation set out in Implementing Decision (EU) 2018/485. The extension of the authorisation should be limited in time to allow for an evaluation of the effectiveness and appropriateness of the special measure. The authorisation should therefore expire on 31 December 2026.
(10)In the event that Denmark requests a further extension of the special measure beyond 31 December 2026, it should submit a report to the Commission together with the extension request by 31 March 2026.
(11)It is considered that the extension of the special measure would only have a negligible effect on the overall amount of VAT revenue collected at the stage of final consumption and would have no adverse impact on the Union's own resources accruing from VAT.
(12)Implementing Decision (EU) 2018/485 should therefore be amended accordingly.