|Author (Corporate)||European Commission|
|Series Title||Official Journal of the European Union|
|Series Details||L 329|
On 20 November 2018 the European Commission presented a proposal for a Council Implementing Decision authorising Germany to continue to apply a measure derogating from Articles 168 and 168a of the VAT Directive. The Council of the European Union adopted the Decision on 20 December.
In September 2018 Germany requested authorisation to continue to apply a measure derogating from Articles 168 and 168a of Directive 2006/112/EC, in order to exclude from the right of deduction the VAT borne on goods and services which are used for more than 90% by the taxable person for his private use or for that of his employees, or in general, for non-business purposes or non-economic activities.
This derogating measure was initially granted in 2000 and has been extended several times, most recently by Decision (EU) 2015/2428 until 31 December 2018. In its latest request, Germany indicated that the application of the derogating measure has proven to be very effective and constitutes a major simplification for the collection of VAT. It also helps to prevent tax evasion and avoidance.
The Commission understands that the special measure provides a facilitation for both tax administrations and businesses. Therefore, it proposed to extend the derogation until the end of 2021.
|Subject Tags||Value Added Tax [VAT]|
|Countries / Regions||Germany|
|International Organisations||European Union [EU]|