Decision (EU) 2018/1487 authorising Austria to continue to apply a measure derogating from Articles 168 and 168a of Directive 2006/112/EC

Summary:

On 18 July 2018 the European Commission presented a proposal for a Council Implementing Decision authorising Austria to continue to apply a measure derogating from Articles 168 and 168a 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 2 October 2018.

Further information:

In March 2018 Austria 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.

The derogating measure for Austria was initially granted in 2004, for a period until 31 December 2009. This has since been extended three times, most recently by Decision (EU) 2015/2428 until 31 December 2018. In its latest request, Austria indicated that the measure is very useful in terms of simplifying VAT collection and preventing tax evasion and avoidance, as well as enhancing fairness in taxation, thus resulting in an increase of tax compliance.

The proposal is designed to simplify the procedure for collecting VAT and has, therefore, a potential positive impact for both businesses and administrations. The solution has been identified by Austria as a suitable measure and is comparable to other past and present derogations. The Commission therefore proposes to extend the derogation until the end of 2021.

Official

EUR-Lex: COM(2018)539: Proposal to amend Decision 2009/1013/EU authorising Austria to continue to apply a measure derogating from Articles 168 and 168a of Directive 2006/112/EC https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2018:539:FIN

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