Decision (EU) 2016/1206 amending Decision 2013/676/EU authorising Romania to continue to apply 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 18 July 2016 authorising Romania to continue to apply the reverse charge mechanism to supplies of wood products.

Further information:

On 9 February 2016, Romania requested an extension of the derogation from Article 193 of the VAT Directive in order to apply the reverse charge mechanism to supplies of wood products. Under this procedure, the taxable person, to whom the supplies are made, becomes liable for the payment of the VAT.

According to Romania, designating the recipient as the person liable for the payment of VAT for supplies of the above-mentioned wood products had the effect of preventing tax evasion and avoidance in this sector which is characterised by a large number of small resellers and intermediaries which have proved difficult to control. An extension for another limited period seems therefore justifiable as it would not appear that the measure has had a negative impact on fraud at the retail level, in other sectors or in other Member States.

However, any new extension should be limited in time in order to assess whether the conditions on which it is based would still be valid. The Commission therefore proposed that the request should be granted until 31 December 2019 and that Romania should again present a report, including a review of the efficiency of the measure and an evaluation of the risk of fraud in the wood sector, if a new extension request would be envisaged beyond that date.

EUR-Lex: COM(2016)354: Proposal for a Decision amending Decision 2013/676/EU authorising Romania to continue to apply 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:2016:354:FIN

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