Looking back @2021 #19: EU VAT Committee met twice and a proposal to transform it into comitology committee was discussed

What is the VAT Committee?

The VAT Committee was set up under Article 398 of the VAT Directive (Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax) to promote the uniform application of the provisions of the VAT Directive. It consists of representatives of Member States and of the Commission.
Because it is an advisory committee only and has not been attributed any legislative powers, the VAT Committee cannot take legally binding decisions. It can give guidance on the application of the Directive which is not, however, in any way binding on the European Commission nor on Member States.
The guidance takes the form of guidelines agreed by the VAT Committee by varying majority: unanimously, almost unanimously or by large majority.

Did you know that … 

The VAT Committee needs to be consulted if a Member States wants to introduce VAT Grouping (Art 11 of the EU VAT Directive 2006/112/EC), deemed taxable transactions – supply of services, (Art. 27), Taxable amount (Art. 80(3)), VAT Rates (Art. 102), Customs warehouses (Art. 155), Exemption for transactions with a view to export (Art. 164), Right to deduct VAT (Art. 167a, 177, 191, 199), Simplification measures (Art. 238), Special schemes (Art. 281), Margin schemes (Art. 318), Gold market regulations (Art. 352)

On December 18, 2020, a proposal was made to transform the VAT Committee into comitology committee

• The European Commission adopted a proposal to adapt decision-making process for interpreting certain VAT concepts (VAT Committee).
• Today, there is a lack of unanimity of the Member States to accept this proposal

During 2021, the VAT Committee met twice

• April 19, 2021 – 118th meeting – Minutes
  • WP 924 REV8 – Centralised clearance upon importation
  • WP 1013 – Romania – Case law – Video chat services
  • WP 1012 – Italian question on the recharging of electric vehicles
  • WP 1010 – Belgian question on the calculation of threshold
  • WP 1009 – Romanian consultation on cash accounting
  • WP 1008 – Case-law raised by VEG
  • WP 1007 – Polish question on call-off stocks
  • Info paper – Options – Art 80 167a 199 and 199a
  • Info paper – Commission – Recent judgments of the CJEU
• Nov 22, 2021: 119th Meeting
  • WP 1020 – Commission – Case Vega International – Fuel cards
  • WP 1022 – Slovakian question on the transfer of business assets
  • WP 1023 – Commission question on the supply of liquified natural gas
  • WP 1024 – Estonian consultation on the global margin scheme
  • WP 1024 ADD – Estonian consultation on the global margin scheme
  • WP 1025 – Commission – Case Danske Bank – Principal establishment
  • WP 1026 – Latvian question on dietary recommendations
  • WP 1027 – Commission question on VAT group and OSS
  • WP 1028 – Polish consultation on warehousing arrangements – Fuel
  • WP 1028 ADD – Polish consultation on warehousing arrangements – Fuel
  • Info paper – Options – Art 80 167a 199 and 199a
  • Info paper – Commission – Recent judgments of the CJEU

ALL Guidelines of the VAT Committee up till the 118th meeting

• Guidelines Vat Committee Meetings
• Index of guidelines in pdf
• Index of the guidelines in excel

The European Commission published a ”Numerical index of the Working Papers” as per Jan 1, 2021

• EU VAT Committee – Numerical index of the Working Papers

Other newsitems related to the VAT Committee published in 2021

• Looking back @2021 #13: Activities of the VAT Expert Group
• Flashback on ECJ Cases – C-228/05 (Stradasfalti) – VAT Committee need to be consulted if a Member State want to restrict VAT deduction of capital goods
• Implementing regulation on treatment VAT repayments to non-taxable persons and to taxable persons for their exempt activities
• Growing importance of the ECJ case C-235/18 (Vega International) on similar business models, also VAT treatment of charging electric vehicles
• EU – The VAT Commission discussed the OSS regime for VAT groups
• Update on the VAT treatment of charging electric vehicles (e-charging)
• EU VAT Reforms – An ambitious agenda, between success stories and standstills
• Highlights of the Minutes of the 118 th meeting of the VAT Committee
• Remember … VAT Committee WP#791 on ”Clarifications of the concept of fixed establishment”
• EPRS Report: ”The VAT Gap, Reduced VAT Rates and their Impact on Compliance Costs for Businesses and Consumers”
• EU VAT Committee – Addendum published to WP 1009 – Romanian consultation on cash accounting
• EU VAT Committee: VAT aspects of centralised clearance for customs upon importation – Overview per Member State of Postponed Accounting &…
• Management Plan 2021 DG TAXATION AND CUSTOMS UNION
• Workshop on: Missing Trader Fraud: definition, effects, prevention and solutions (May 26, 2021)
• ​EU VAT Committee on VAT call-off stock simplifications following Brexit
• European Council discussed with Member States the evaluation of the VAT travel agent scheme and our VAT Committee proposal
• Proposal ‘Decision-making process for interpretation of VAT concepts’ (VAT Committee)
• EU VAT Committee on VAT call-off stock simplifications following Brexit
• VAT Committee: Call-off stocks and Brexit
• Guidelines resulting from meetings of the EU VAT Committee – Up until 5 March 2021
• EU VAT Committee: Treatment of small losses of goods under call-off stock arrangements
• EU VAT Committee – Brexit and Call-Off stocks
• VAT Expert Group presented its Working Paper on the ECJ Skandia case to the VAT Committee in September 2015
• Remember … VAT Committee WP#923 on VAT implications of Transfer Pricing (Feb 28, 2017)
• VAT Committee – Working Paper 1002 – Consultation from France on VAT Grouping
• Commission’s plans to strengthen the role of the VAT Committee

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Check also the previous articles on ”Looking back @2021”

1. Brexit
2. E-Commerce VAT Directive launched in the EU per July 1, 2021
3. Next to the EU, 14 countries implemented VAT on E-Commerce, another 7 will implement in 2022
4. Saudi-Arabia is the first country in the Middle East launching E-Invoicing, UAE may follow
5. The concept of Fixed Establishments remains a major risk, and even why?
6. Intrastat: Major updates applicable as of Jan 1, 2022
7. Implementation/changes E-Invoicing & Real Time Reporting during 2021
8. ECJ cases decided in 2021 on ”Taxable Amount”

9. Increased focus on Fighting Climate Change – Carbon tax

10. 49 ECJ VAT Cases decided (incl. orders) in 2021
11. Split Payments
12. Poland and France to introduce optional taxation of Financial Services – Exemption may not longer be applied
13. Activities of the VAT Expert Group
14. ECJ cases decided in 2021 on ”Exemptions”
15. Pre-Filled VAT returns
16. SAF-T (or equivalent) regulations, some more countries will implement
17. Environmental Tax – Will Plastic Tax stop pollution?
18. VAT Grouping, a tool to avoid VAT leakage, optimize VAT receivables and simplify processes