|Author (Corporate)||Council of the European Union|
|Series Title||Official Journal of the European Union|
On 16 July 2009 the European Commission presented a proposal for a Council Decision authorising Germany to continue to apply a special measure derogating from Article 168 of Directive 2006/112/EC on the common sytem of value added tax (the VAT Directive). The Council of the European Union adopted the Decision on 20 October.
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 Germany 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.
This derogating measure was initially granted by Decision 2000/186/EC for a period until 31 December 2002 and was subsequently extended by Decision 2003/354/EC until 30 June 2004, and again by Decision 2004/817/EC until 31 December 2009.
The Commission considers that the 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 extension should therefore be granted until 31 December 2012.
|Subject Tags||Value Added Tax [VAT]|
|Countries / Regions||Germany|
|International Organisations||European Union [EU]|