Proposal for a Council Implementing Decision authorising Latvia to introduce a special measure derogating from point (a) of Article 26(1) and Articles 168 and 168a of Directive 2006/112/EC on the common system of value added tax

Pursuant to Article 395(1) of Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (hereafter "the 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 VAT or to prevent certain forms of tax evasion or avoidance.

By letter registered with the Commission on 8 April 2015, Latvia requested authorisation to continue to apply a measure derogating from the overall principles governing the right of deduction of input VAT in relation to certain passenger cars. Together with the request for extension, Latvia submitted a report covering the application of Council Implementing Decision 2013/191/EU which includes a review of the percentage foreseen for the limitation of the right of deduction.

Given the change in percentage, a new derogation is more suitable than an extension of the existing one. The new derogation should be limited in time to 31 December 2018 in order to assess whether the conditions on which the derogation is based would still be valid. Any extension request should be accompanied by a report which includes a review of the percentage applied and should be sent to the Commission with that request by 31 March 2018.

EUR-Lex: COM(2015)546: Follow the progress of this proposal through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2015:546:FIN

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