Decision (EU) 2018/1919 authorising Poland to apply a measure derogating from Article 287 of Directive 2006/112/EC on the common system of value added tax

Summary:

On 26 October 2018 the European Commission presented a proposal for a Council Implementing Decision amending Decision 2009/790/EC authorising Poland to continue to apply a measure derogating from Article 287 of the VAT Directive. The Council of the European Union adopted the Decision on 4 December.

Further information:

Under Article 287 of the VAT Directive, Poland may exempt from VAT taxable persons whose annual turnover is no higher than the equivalent in national currency of €10,000. In 2009 the Council authorised Poland to increase that amount to €30,000 until 31 December 2012. This derogation was extended until 31 December 2015 and subsequently until 31 December 2018. The exemption threshold was also increased to €40,000.

In May 2018 Poland requested an extension of the measure for another limited period. The special measure simplifies the burden on business for a higher number of taxable persons who have a limited business activity and stimulates the development of such small businesses. At the same time the measure results in the reduction of the administrative burden on the tax administration by limiting the need to control small taxable persons, which is relatively costly in comparison to the amount of VAT at stake.

Given a potential positive impact on the reduction of administrative burden for businesses and tax administration without a major impact on the total VAT revenue, the Commission proposed to extend the derogation for another limited period, until 31 December 2021.

Official

EUR-Lex: COM(2018)713: Proposal for a Council Implementing Decision amending Decision 2009/790/EC authorising Poland to apply a measure derogating from Article 287 of Directive 2006/112/EC https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2018:713:FIN

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