Proposal for a Council Decision authorising Bulgaria and Romania to apply measures derogating from Article 5 of Directive 2006/112/EC on the common system of value added tax

Pursuant to Article 395 of Directive 2006/112/EC of 28 November 2006 on the common system of value added tax ('VAT Directive'), the Council, acting unanimously on a proposal from the Commission, may authorise any Member State to apply special measures for derogation from the provisions of that Directive, in order to simplify the procedure for collecting value added tax (VAT) or to prevent certain forms of tax evasion or avoidance.

Bulgaria and Romania decided, in order to facilitate road and rail traffic between their territories, to sign an agreement on 5 June 2000 for the construction of a border bridge over the river Danube between Vidin (Bulgaria) and Calafat (Romania).

In this context, Bulgaria and Romania requested to be authorised to apply derogating measures as regards the VAT rules on territoriality for the maintenance and repair of that bridge and the charging of the toll for the crossing (the construction of the border bridge was explicitly excluded from the derogation request).

This proposal aims at simplifying the VAT collection as regards certain services related to the border bridge.

• Primary Source

EUR-Lex: COM(2012)611: Follow the progress of this document through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2012:611:FIN

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