Considerations on COM(2024)294 -

Please note

This page contains a limited version of this dossier in the EU Monitor.

 
dossier COM(2024)294 - .
document COM(2024)294
date July 12, 2024
 
(1) Pursuant to Article 193 of Directive 2006/112/EC, the taxable person supplying the goods or services is, as a general rule, liable for the payment of value added tax (VAT) to the tax authorities.

(2) In accordance with Council Implementing Decision (EU) 2021/17780, Germany was authorised to apply, until 31 December 2024, a special measure derogating from Article 193 of Directive 2006/112/EC (‘the special measure’), to designate the taxable person receiving transfers of emission allowances under the BEHG as liable for payment of VAT.

(3) By letter registered with the Commission on 19 February 2024, Germany requested the extension of the special measure granted by Implementing Decision (EU) 2021/1778 and thereby an authorisation to continue to apply the special measure beyond 31 December 2024 (‘the request’).

(4) Pursuant to Article 395(2), second subparagraph of Directive 2006/112/EC, by letters dated 27 March 2024, the Commission transmitted the request to the other Member States and, by letter dated 2 April 2024, it notified Germany that it had all the information necessary to consider the request.

(5) According to the information provided by Germany, the factual situation which justified the application of the special measure has not changed. Germany submitted to the Commission, together with the request, a report on the overall positive practical experience that shows that the use of the reverse charge mechanism in the transfer of emission allowances under the BEHG has proved its worth in practice. The arrangement is an important component in combating VAT fraud, whose importance is expected to increase in the coming years because of changing market conditions.

(6) It is therefore appropriate to extend the authorisation granted in Implementing Decision (EU) 2021/1778. The extension of the authorisation should be limited in time to allow for an evaluation of the effectiveness and appropriateness of the special measure. The derogating measure should therefore expire on 31 December 2026.

(7) If Germany wishes to extend that measure beyond 2026, it should submit a report to the Commission, including a review of the special measure together with the extension request by 31 March 2026 at the latest. That report should include an assessment of the impact of the measure on the fight against VAT fraud and the number of traders and transactions affected by the measure.

(8) The special measure will have no adverse impact on the Union's own resources accruing from VAT.

(9) Implementing Decision (EU) 2021/1778 should therefore be amended accordingly,