Decision (EU) 2018/1700 amending Decision 2013/54/EU authorising Slovenia to introduce a special measure derogating from Article 287 of Directive 2006/112/EC

Summary:

On 20 September 2018 the European Commission presented a proposal for a Council Implementing Decision authorising Slovenia to continue to apply a special measure derogating from Article 287 of Directive 2006/112/EC on the common system of value added tax. The Council of the European Union adopted the Decision on 6 November.

Further information:

Directive 2006/112/EC (the VAT Directive) allows for the possibility for 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 input.

Under Article 287(15) of the VAT Directive, Slovenia may exempt from VAT taxable persons whose annual turnover is no higher than the equivalent in national currency of €25,000. In 2013 the Council authorised Slovenia to exempt from VAT taxable persons whose annual turnover is no higher than €50,000. This derogation, which was renewed in 2015, is due to expire on 31 December 2018.

In May 2018 Slovenia requested an extension of the derogation. From the information provided by Slovenia, it appears that an increasing number of small businesses are making use of the simplification measure, and the impact of the measure on tax VAT revenue collected at the final consumption stage is negligible. It is therefore proposed to extend the derogation for another limited period until 31 December 2021.

Official

EUR-Lex: COM(2018)653: Proposal to amend Decision 2013/54/EU authorising the Republic of Slovenia to introduce a special measure derogating from Article 287 of Directive 2006/112/EC https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2018:653:FIN

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