HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"EN
1.5.2012 Official
Journal
of
the
European
Union L
117/7
DECISIONS
COUNCIL IMPLEMENTING DECISION
of 26 April 2012
authorising Romania to apply measures derogating from Article 26(1)(a) and Article 168 of
Directive 2006/112/EC on the common system of value added tax
(2012/232/EU)
THE COUNCIL OF THE EUROPEAN UNION,
(4)
The non-business use of vehicles is difficult to identify
accurately and even where it is possible, the mechanism
for doing so is often burdensome. Under the requested
Having regard to the Treaty on the Functioning of the European
measures, the amount of VAT on expenditure eligible for
Union,
deduction concerning motorised road vehicles which are
not used exclusively for business purposes should, with
some exceptions, be set at a flat percentage rate. Based
on currently available information, Romania believes that
Having regard to Council Directive 2006/112/EC of
a rate of 50 % is justifiable. At the same time, to avoid
28 November 2006 on the common system of value added
double taxation, the requirement for accounting for VAT
tax ( 1 ), and in particular Article 395(1) thereof,
on the non-business use of a motorised road vehicle
should be suspended where it has been subject to this
restriction. These measures can be justified by the need to
simplify the procedure for charging VAT and to prevent
Having regard to the proposal from the European Commission,
evasion through incorrect record-keeping and false tax
declaration.
Whereas:
(5) The
restriction
on
the
right
of
deduction
under
the
special measures should apply to VAT paid on the
(1) By letter registered
with the Commission on
purchase, intra-Community acquisition, importation,
27 September 2011, Romania requested authorisation
hire or leasing of specified motorised road vehicles and
to introduce special measures concerning certain
on expenditure related thereto, including the purchase of
motorised road vehicles derogating from those provisions
fuel.
laid down in Directive 2006/112/EC which govern a
taxable person’s right to deduct VAT paid on the
purchase of goods and services and those which
(6) Certain
types
of
motorised
road
vehicles
should
be
require tax to be accounted for on business assets used
excluded from the scope of the special measures since,
for non-business purposes.
due to their nature or the type of business they are used
for, any non-business use thereof is considered to be
negligible. Therefore, the special measures should not
(2) In
accordance
with
the
second
subparagraph
of
apply to vehicles with more than nine seats including
Article 395(2) of Directive 2006/112/EC, by letter
the driver’s, or with a maximum permissible laden
dated 1 December 2011, the Commission informed the
mass of more than 3 500 kilograms. In addition, a
other Member States of the request made by Romania.
detailed list of specific types of vehicles excluded from
By letter dated 5 December 2011, the Commission
that restriction should be provided, based on their
notified Romania that it had all the information
particular use.
necessary to consider the request.
(7) These
derogating
measures
should
be
limited
in
time
to
(3) Article
168
of
Directive
2006/112/EC
establishes
a
allow for an evaluation of their effectiveness and of the
taxable person’s right to deduct VAT charged on
appropriate percentage, since the proposed percentage is
supplies of goods and services received by him for the
based on initial findings regarding business use.
purposes of his taxed transactions. Point (a) of
Article 26(1) of that Directive contains a requirement
to account for VAT when a business asset is put to
(8) Where
Romania
considers
an
extension
of
the
derogating
use for the private purposes of the taxable person or
measures is necessary, a report on the application of the
his staff or, more generally, for purposes other than
measures in question, which includes a review of the
those of his business.
percentage applied, should be submitted to the
Commission together with the request for an extension
( 1 ) OJ L 347, 11.12.2006, p. 1.
in a timely manner.

---

L 117/8
EN
Official Journal of the European Union
1.5.2012
(9) On
29
October
2004,
the
Commission
adopted
a (d) vehicles used for the supply of services for consideration,
proposal ( 1 ) for a Council Directive amending Directive
including hire or driving lessons provided by driving
77/388/EEC, now Directive 2006/112/EC, that includes
schools;
the harmonisation of the categories of expenses for
which exclusions from the right of deduction may
(e) vehicles used for hire or leasing;
apply. Under that proposal, exclusions from the right
to deduct could be applied to motorised road vehicles.
The derogating measures provided for in this Decision
(f) vehicles used as commodities for trading purposes.
should expire on the date of the entry into force of such
an amending Directive, if that date is earlier than the date
Article 3
of expiry provided for in this Decision.
By way of derogation from point (a) of Article 26(1) of
Directive 2006/112/EC, Romania is authorised not to treat as
(10) The derogation will have only a negligible effect on the
a supply of services for consideration the private use by a
overall amount of tax revenue collected at the stage of
taxable person or his staff or, more generally, for purposes
final consumption and will have no impact on the
other than those of his business, of a vehicle to which the
Union’s own resources accruing from value added tax,
restriction referred to in Article 1 of this Decision applies.
HAS ADOPTED THIS DECISION:
Article 4
1. This
Decision
shall
expire
on
the
date
of
entry
into
force
Article 1
of Union rules determining the expenditure relating to
By way of derogation from Article 168 of Directive
motorised road vehicles that is not eligible for full deduction
2006/112/EC, Romania is hereby authorised to limit to 50 %
of VAT, or on 31 December 2014, whichever is the earlier.
the right to deduct the VAT on the purchase, intra-Community
acquisition, importation, hire or leasing of motorised road
2. Any request for the extension of the measures provided
vehicles as well as the VAT charged on expenditure related to
for in this Decision shall be submitted to the Commission by
those vehicles, where the vehicle is not used exclusively for
31 March 2014.
business purposes.
Such request shall be accompanied by a report which includes a
The restriction set out in the first subparagraph shall not apply
review of the percentage restriction applied on the right to
to motorised road vehicles with a maximum permissible laden
deduct VAT on the basis of this Decision.
mass of more than 3 500 kg or with more than nine seats
including the driver’s seat.
Article 5
This Decision shall take effect on the day of its notification.
Article 2
The first subparagraph of Article 1 shall not apply to the
Article 6
following categories of motorised road vehicles:
This Decision is addressed to Romania.
(a) vehicles used exclusively for emergency services, for security,
protection and courier services;
Done at Luxembourg, 26 April 2012.
(b) vehicles used by sales agents and by purchasing agents;
For the Council
(c) vehicles used for the transport of passengers for consider
The President
ation, including taxi services;
M. GJERSKOV
( 1 ) COM(2004) 728 final.

---

Document Outline

• �

---