|Author (Corporate)||Council of the European Union|
|Series Title||Official Journal of the European Union|
On 29 October 2009 the European Commission presented a proposal for a Council Decision authorising 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 VAT Directive). The Council of the European Union adopted the Decision on 22 December.
According to Article 168 of the VAT Directive, a taxable person is entitled to deduct the VAT charged on purchases of goods and services made for the purposes of his taxed transactions.
The derogating measure requested by Austria excludes VAT borne on goods and services that are used for more than 90% for private or non-business purposes by a taxable person entirely from the right of deduction. The derogation was initially granted by Decision 2004/866/EC for a period until 31 December 2009.
The Commission has previously accepted that this derogation is based on the need to simplify the procedure for charging VAT while, at the same time, it affects the amount of tax due at the final consumption stage only to a negligible extent. The derogation should therefore be extended until 31 December 2012.
|Subject Tags||Value Added Tax [VAT]|
|Countries / Regions||Austria|
|International Organisations||European Union [EU]|