Decision 2013/53/EU authorising Belgium to apply a special measure derogating from Article 285 of Directive 2006/112/EC

Summary:

On 14 November 2012 the European Commission presented a proposal for a Council Decision authorising Belgium to apply a special measure derogating from Article 285 of Directive 2006/112/EC on the common system of value added tax (the VAT Directive). The Council of the European Union adopted the Decision on 22 January 2013.

Further information:

The VAT Directive allows for the possibility of Member States to apply special schemes for small enterprises, including the possibility of exempting taxable persons below a certain annual turnover. This exemption implies that a taxable person does not have to charge VAT on his supplies and, consequently, he cannot deduct the VAT on his inputs.

Under Article 285 of the VAT Directive, Member States can exempt taxable persons whose threshold is no higher than €5,000. The Belgian Government would like to raise this threshold to €25,000, with the possibility to increase it in order to maintain its value in real terms.

The introduction of such a threshold will simplify the VAT system for small enterprises and significantly reduce the burdens on those businesses eligible for the scheme by releasing them from many of the VAT obligations under the normal VAT arrangements.

The proposed Decision aims at introducing a simplification measure which removes many of the VAT obligations for businesses operating with an annual turnover no higher than €25,000 and therefore has a potential positive impact. The derogation will apply until 31 December 2015.

Official

EUR-Lex: COM(2012)654: Proposal for a Council Decision authorising Belgium to apply a special measure derogating from Article 285 of Directive 2006/112/EC https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2012:654:FIN

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