- Proposal Overview: The Council of the European Union proposes an implementing decision to amend Decision 2009/791/EC, allowing Germany to continue applying a measure that derogates from Articles 168 and 168a of Directive 2006/112/EC on VAT.
- Germany’s Request: On 19 February 2024, Germany requested to continue excluding VAT deduction on goods and services used over 90% for private or non-business purposes. This request is supported by a report on the measure’s application.
- Effectiveness and Simplification: Germany’s special measure has been effective in simplifying VAT collection and preventing tax evasion, reducing administrative burdens as it eliminates the need to monitor the business vs. private use of acquired goods and services.
- Extension Period: The proposed extension will allow Germany to continue applying this measure until 31 December 2027, with a requirement to submit a review report and extension request by 31 March 2027 if further extension is needed.
- Consistency and Impact: The special measure aligns with existing VAT provisions and has no negative impact on the EU’s VAT revenue, maintaining consistency with the Union’s fiscal policies.
Source eur-lex.europa.eu
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