Pursuant to Article 395(1) of Council Directive 2006/112/EC of 28 November 2006 on the common system of valued added tax 1 (‘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 9 October 2020, Estonia requested an authorisation to continue to apply, until 31 December 2024, a measure derogating from Article 287 of the VAT Directive, allowing Estonia to exempt from VAT taxable persons whose annual turnover is no higher than EUR 40 000.
In accordance with Article 395(2) of the VAT Directive, the Commission informed the other Member States by letter dated 15 October 2020 of the request made by Estonia. The Commission notified Estonia by letter dated 19 October 2020 that it had all the information necessary to consider the request.
Source: eur-lex.europa.eu
