Considerations on COM(2003)116 - Authorisation of Germany to derogate from Article 17 of the Sixth Directive (77/388/EEC) on the harmonisation of the laws of the Member States relating to turnover taxes - Main contents
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dossier | COM(2003)116 - Authorisation of Germany to derogate from Article 17 of the Sixth Directive (77/388/EEC) on the harmonisation of the laws of ... |
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document | COM(2003)116 ![]() |
date | May 13, 2003 |
(2) The other Member States were informed of the request on 17 January 2003.
(3) The derogating measure is intended to exclude expenditure on goods and services completely from the right to deduct VAT when the goods and services are used more than 90 % for the private purposes of the taxable person, or of his employees, or for non-business purposes in general. This measure is a derogation from Article 17 of Directive 77/388/EEC, as amended by Article 28f of that Directive and is justified by the need to simplify the procedure for charging VAT; it affects the amount of tax due at the final consumption stage only to a negligible extent.
(4) The authorisation expired on 31 December 2002, although the legal situation and the facts which justified application of the simplification measure in question have not changed and continue to exist.
(5) The duration of the new authorisation should however be limited to 30 June 2004. This maximum period will allow the derogation to be evaluated in the light of the ruling on Case C-17/01, which the Court will probably deliver in the course of 2003.
(6) The derogation will not adversely affect the Communities' own resources from VAT.