Extension of the authorisation for Romania to continue to apply a reverse charge for wood supplies

On 15 December 2022 the Council received the Commission proposal1 on the
abovementioned subject.
2. There were no objections raised against the substance of this derogation within the Working
Party on Tax Questions (Indirect Taxation).
3. In view of the above, the Permanent Representatives Committee is invited to suggest that the
‒ adopt the abovementioned Implementing Decision as finalised by the legal/linguistic
experts and set out in document 5082/23 as an “A” item on the agenda of a forthcoming
– agree on the publication of the abovementioned Implementing Decision in the Official

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.

Romania requested in 2009 a derogation in order to be authorised to apply the reverse charge mechanism to, inter alia, supplies of wood products. Under this procedure, the taxable person, to whom the supplies are made, becomes liable for the payment of the VAT. These woods products include, more specifically, standing timber, round or cleft working wood, fuel wood, timber products, as well as square-edged or chipped wood and wood in the rough, processed or semi-manufactured wood.

By letter registered with the Commission on 8 April 2022, the Republic of Romania (hereinafter Romania) requested the authorisation to continue to apply a measure derogating from Article 193 of the VAT Directive, which determines the person liable for the payment of VAT. By letter registered on the 28 June 2022 the Commission requested additional information concerning the request from Romania, which provided its reply by letter registered on 22 August 2022.

In accordance with Article 395(2) of the VAT Directive, the Commission informed all Member States, except Spain, on 1 September 2022 and Spain on 2 September 2022, of the request made by Romania. By letter dated 5 September 2022, the Commission notified Romania that it had all the information necessary to consider the request.




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