Pursuant to Article 395(1) of Council Directive 2006/112/EC of 28 November 2006 on the
common system of valued added tax (‘the VAT Directive’), 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 1 March 2021, Poland requested authorisation to
continue applying the derogating measure consisting in granting a VAT exemption to taxable
persons whose annual turnover is no higher than the equivalent in national currency of EUR
40 000 until 31 December 2024.
In accordance with Article 395(2) of the VAT Directive, the Commission informed the other
Member States by letter dated 25 March 2021, and Cyprus on 26 March 2021 of the request
made by Poland. The Commission notified Poland by letter dated 29 March 2021 that it had
all the information necessary to consider the request.