Proposal for a COUNCIL IMPLEMENTING DECISION amending Decision 2009/791/EC authorising Germany to continue to apply a measure derogating from Article 168 of Directive 2006/112/EC on the common system of value added tax: COM/2021/435 final
EXPLANATORY MEMORANDUM
Pursuant to Article 395(1) of Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (‘the VAT Directive’ 1 ), the Council, acting unanimously on a proposal from the Commission, may authorise any Member State to apply special measures for derogation from the provisions of that Directive, in order to simplify the procedure for collecting VAT or to prevent certain forms of tax evasion or avoidance.
By letter registered with the Commission on 19 February 2021, the Federal Republic of Germany (hereinafter Germany) requested the authorisation to continue to apply a measure derogating from Articles 168 and 168a of the VAT Directive, 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 their private use or for that of their employees, or in general, for non-business purposes or non-economic activities. The request was accompanied by a report on the application of this measure as required by Article 2 of Council Decision 2009/791/EC of 20 October 2009 2 as amended by Council Implementing Decision (EU) 2018/2060 of 20 December 2018 3 .
In accordance with Article 395(2) of the VAT Directive, the Commission informed the other Member States by letters dated 17 March 2021 of the request made by Germany. By letter dated 18 March 2021, the Commission notified Germany that it had all the information necessary to consider the request.
Source: europa.eu
