Decision (EU) 2018/2060 amending Decision 2009/791/EC authorising Germany to continue to apply a measure derogating from Articles 168 and 168a of Directive 2006/112/EC

Summary:

On 20 November 2018 the European Commission presented a proposal for a Council Implementing Decision authorising Germany to continue to apply a measure derogating from Articles 168 and 168a of the VAT Directive. The Council of the European Union adopted the Decision on 20 December.

Further information:

In September 2018 Germany 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.

This derogating measure was initially granted in 2000 and has been extended several times, most recently by Decision (EU) 2015/2428 until 31 December 2018. In its latest request, Germany indicated that the application of the derogating measure has proven to be very effective and constitutes a major simplification for the collection of VAT. It also helps to prevent tax evasion and avoidance.

The Commission understands that the special measure provides a facilitation for both tax administrations and businesses. Therefore, it proposed to extend the derogation until the end of 2021.

Official

EUR-Lex: COM(2018)750: Proposal to amend Decision 2009/791/EC authorising Germany 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:2018:750:FIN

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