Implementing decision 2021/86 - Authorisation of Lithuania to derogate from Article 287 of the VAT Directive - Main contents
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official title
Council Implementing Decision (EU) 2021/86 of 22 January 2021 authorising the Republic of Lithuania to apply a special measure derogating from Article 287 of Directive 2006/112/EC on the common system of value added tax| Legal instrument | implementing decision |
|---|---|
| Number legal act | Implementing decision 2021/86 |
| Original proposal | COM(2020)812  |
| CELEX number i | 32021D0086 |
| Document | 22-01-2021; Date of adoption |
|---|---|
| Publication in Official Journal | 28-01-2021; OJ L 30 p. 2-3 |
| Effect | 01-01-2021; Application See Art 2 28-01-2021; Takes effect Date notif. |
| End of validity | 31-12-2024; See Art. 2 |
| Notification | 28-01-2021; {titleAndReference.draft.disclaimer.new|http://publications.europa.eu/resource/authority/fd_365/titleAndReference.draft.disclaimer.new} |
28.1.2021 |
EN |
Official Journal of the European Union |
L 30/2 |
COUNCIL IMPLEMENTING DECISION (EU) 2021/86
of 22 January 2021
authorising the Republic of Lithuania to apply a special measure derogating from Article 287 of Directive 2006/112/EC on the common system of value added tax
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (1), and in particular the first subparagraph of Article 395(1) thereof,
Having regard to the proposal from the European Commission,
Whereas:
(1) |
Under Article 287 of Directive 2006/112/EC, Lithuania is able to exempt from value added tax (‘VAT’) taxable persons whose annual turnover is no higher than the equivalent in national currency of EUR 29 000 at the conversion rate on the day of its accession to the Union. Lithuania was authorised by Council Implementing Decision 2011/335/EU (2) to exempt from VAT taxable persons whose annual turnover was no higher than the equivalent in national currency of EUR 45 000 at the conversion rate on the day of its accession to the Union, until 31 December 2020. |
(2) |
By letter registered with the Commission on 18 June 2020, Lithuania requested an authorisation to continue applying a special measure derogating from Article 287 of Directive 2006/112/EC (the ‘derogating measure’) from 1 January 2021 until 31 December 2024, and to increase the threshold of that exemption to EUR 55 000 (the ‘increased threshold’). By 31 December 2024 Member States are to adopt and publish the laws, regulations and administrative provisions necessary to comply with Article 1 of Council Directive (EU) 2020/285 (3), which lays down simpler VAT rules for small enterprises and, inter alia, deletes Article 287 of Directive 2006/112/EC with effect from 1 January 2025. |
(3) |
On the basis of the derogating measure, taxable persons whose annual turnover is no higher than EUR 55 000 will be exempt from certain or all of the obligations in relation to VAT laid down in Chapters 2 to 6 of Title XI of Directive 2006/112/EC. |
(4) |
A higher threshold for the special scheme for small enterprises set out in Articles 281 to 294 of Directive 2006/112/EC is a simplification measure, as it may significantly reduce the VAT obligations of small enterprises. The requested increased threshold is consistent with Article 284 of Directive 2006/112/EC. |
(5) |
In accordance with the second subparagraph of Article 395(2) of Directive 2006/112/EC, the Commission transmitted the request made by Lithuania to the other Member States by letters dated 10 August 2020 and 11 August 2020. By letter dated 12 August 2020, the Commission notified Lithuania that it had all the information it considered necessary for appraisal of the request. |
(6) |
The derogating measure is optional for taxable persons, who will still be able to opt for the regular VAT arrangements in accordance with Article 290 of Directive 2006/112/EC. |
(7) |
According to the information provided by Lithuania, the derogating measure will only have a negligible impact on the overall amount of tax revenue collected at the stage of final consumption. |
(8) |
The derogating measure will not have a negative impact on the Union’s own resources accruing from VAT because Lithuania will carry out a compensation calculation in accordance with Article 6 of Council Regulation (EEC, Euratom) No 1553/89 (4). |
(9) |
Given that the increased threshold is expected to reduce VAT obligations and thus compliance costs for small enterprises, as well as the administrative burden for the tax authorities, and as the impact on the total VAT revenue generated is negligible, Lithuania should... |
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