Implementing decision 2021/1779 - Amendment of Implementing Decision 2009/1013/EU authorising Austria to continue to derogate from Article 168 of the VAT Directive - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
Contents
official title
Council Implementing Decision (EU) 2021/1779 of 5 October 2021 amending Implementing Decision 2009/1013/EU authorising the Republic of Austria to continue to apply a measure derogating from Article 168 of Directive 2006/112/EC on the common system of value added tax| Legal instrument | implementing decision |
|---|---|
| Number legal act | Implementing decision 2021/1779 |
| Regdoc number | ST(2021)11667 |
| Original proposal | COM(2021)458  |
| CELEX number i | 32021D1779 |
| Document | 05-10-2021; Date of adoption |
|---|---|
| Publication in Official Journal | 11-10-2021; OJ L 360 p. 120-121 |
| Effect | 08-10-2021; Takes effect Date notif. See Art 2 |
| End of validity | 31-12-9999 |
| Notification | 08-10-2021 |
11.10.2021 |
EN |
Official Journal of the European Union |
L 360/120 |
COUNCIL IMPLEMENTING DECISION (EU) 2021/1779
of 5 October 2021
amending Implementing Decision 2009/1013/EU authorising the Republic of Austria to continue to apply a measure derogating from Article 168 of Directive 2006/112/EC on the common system of value added tax
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (1), and in particular Article 395(1), first subparagraph, thereof,
Having regard to the proposal from the European Commission,
Whereas:
(1) |
Council Implementing Decision 2009/1013/EU (2) authorised the Republic of Austria (‘Austria’) to apply a special measure derogating from Directive 2006/112/EC (‘the special measure’). Following successive extensions, that authorisation is due to expire on 31 December 2021. |
(2) |
Council Directive 2009/162/EU (3) inserted Article 168a into Directive 2006/112/EC in order to limit the deduction to the proportion of effective business use and thus apply more effectively the principle whereby the deduction arises only in so far as the goods and services concerned are used for the purposes of the taxable person’s business. Article 1 of Implementing Decision 2009/1013/EU has been amended to include a reference to Article 168a of Directive 2006/112/EC. The title of Implementing Decision 2009/1013/EU therefore needs to refer to Article 168a of Directive 2006/112/EC as well. |
(3) |
The special measure derogates from Articles 168 and 168a of Directive 2006/112/EC, which govern taxable persons’ right to deduct value added tax (VAT) charged on goods and services supplied to them for the purposes of their taxed transactions. The special measure is intended to exclude VAT borne on goods and services from the right of deduction where those goods and services are used by the taxable person for more than 90 % for their private purposes or for purposes of their employees, or, in general, for non-business purposes or non-economic activities. |
(4) |
The objective of the special measure is to simplify the procedure for charging and collecting VAT. The amount of tax due at the level of final consumption is only affected to a negligible extent. |
(5) |
By letter registered with the Commission on 19 March 2021, Austria requested to be authorised to continue to apply the special measure (‘the request’). |
(6) |
Pursuant to Article 395(2), second subparagraph, of Directive 2006/112/EC, by letters dated 7 April 2021, the Commission transmitted the request to the other Member States. By letter dated 8 April 2021, the Commission notified Austria that it had all the information necessary to consider the request. |
(7) |
According to Austria, the special measure has proven very effective in simplifying the collection of VAT and preventing tax evasion and avoidance. It reduces administrative burdens for businesses and tax administrations, as there is no need for any monitoring of the subsequent use of the goods and services to which the exclusion from deduction applied at the time of their acquisition. Austria should therefore be authorised to continue to apply the special measure for a further limited period until 31 December 2024. |
(8) |
In the event that Austria considers an extension beyond 2024 to be necessary, it should submit a request to the Commission by 31 March 2024 accompanied by a report on the application of the special measure, including a review of the apportionment rate applied. |
(9) |
The special measure will have no adverse impact on the Union’s own resources accruing from VAT. |
(10) |
Implementing Decision... |
More
This text has been adopted from EUR-Lex.
This dossier is compiled each night drawing from aforementioned sources through automated processes. We have invested a great deal in optimising the programming underlying these processes. However, we cannot guarantee the sources we draw our information from nor the resulting dossier are without fault.
This page is also available in a full version containing the legal context, de Europese rechtsgrond, other dossiers related to the dossier at hand and the related cases of the European Court of Justice.
The full version is available for registered users of the EU Monitor by ANP and PDC Informatie Architectuur.
The EU Monitor enables its users to keep track of the European process of lawmaking, focusing on the relevant dossiers. It automatically signals developments in your chosen topics of interest. Apologies to unregistered users, we can no longer add new users.This service will discontinue in the near future.