Decision 2011/363/EU authorising Romania to introduce a special measure derogating from Article 193 of Directive 2006/112/EC on the common system of value added tax

Summary:

Council Implementing Decision of 20 June 1011 authorising Romania to apply the reverse charge procedure to supplies of wheat, rye, barley, maize, soya, rapeseed and sunflower seed.

Further information:

In 2009, and again in 2010, Romania requested authorisation to introduce a special measure derogating from Article 193 of the VAT Directive in order to designate the taxable recipients of supplies of wheat, rye, barley, maize, soya, rapeseed and sunflower seed as the persons liable to pay VAT instead of the suppliers (reverse charge procedure).

Romania has found cases of tax evasion in the trade in certain unprocessed agricultural products, cereals and oilseeds. Some operators do not pay VAT after delivering their products, especially if they have acquired them without payment of input tax. Their customers, however, are entitled to deduct the VAT as they are in possession of a valid invoice.

Designating the taxable person to whom the goods are supplied as liable for the VAT instead of the supplier would be a temporary emergency measure that would put an end to this form of evasion. Application of that special measure for 2 years, from 1 June 2011 until 31 May 2013, should give Romania time to introduce in the agricultural sector definitive measures compatible with Directive 2006/112/EC that would prevent and combat this form of evasion.

• Primary Source

EUR-Lex: COM(2011)235: Proposal for a Decision authorising Romania to introduce a special measure derogating from Article 193 of Directive 2006/112/EC on the common system of value added tax https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2011:235:FIN

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