Decision 2012/181/EU authorising Romania to apply a measure derogating from Article 287 of Directive 2006/112/EC on the common system of value added tax

Summary:

Council Implementing Decision of 26 March 2012 authorising Romania to apply a derogation from Article 287 of the VAT Directive to exempt taxable persons whose annual turnover is no higher than €65,000.

Further information:

Title XII of the VAT Directive allows for the possibility for Member States to apply special schemes for small enterprises, including the possibility of exempting taxable persons below a certain annual turnover. This annual turnover ceiling differs from one Member State to another, particularly according to its date of accession. For Member States that acceded after 1 January 1978, an annual turnover threshold has been fixed by Article 287 of the VAT Directive.

The maximum threshold for Romania was fixed at €35,000 (calculated in accordance with the conversion rate on the day of accession). In 2011, Romania requested authorisation to exempt taxable persons whose annual turnover is no higher than €65,000, with the aim of significantly reducing the burdens on those businesses eligible for the scheme and releasing them from many of the VAT obligations under the normal VAT arrangements.

The measure has no impact on the Union’s own resources accruing from VAT and only a negligible effect on the overall amount of the tax revenue of Romania collected at the stage of final consumption. The Commission therefore proposed that Romania should be authorised to exempt from VAT taxable persons whose annual turnover is no higher than the equivalent in national currency of €65,000 until 31 December 2014.

• Primary Source

EUR-Lex: COM(2012)014: Proposal for a Decision authorising Romania to apply a measure derogating from Article 287 of Directive 2006/112/EC on the common system of value added tax https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2012:014:FIN

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