Sundheds- og Ældreudvalget 2016-17
SUU Alm.del Bilag 391
Offentligt
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EUROPEAN COMMISSION
DIRECTORATE-GENERAL
TAXATION AND CUSTOMS UNION
Indirect Taxation and Tax administration
Value added tax
taxud.c.1(2017)3063070
EN
Brussels, 29 May 2017
VALUE ADDED TAX COMMITTEE
(A
RTICLE
398
OF
D
IRECTIVE
2006/112/EC)
W
ORKING PAPER
N
O
925 FINAL
M
INUTES
108
TH
MEETING
27
AND
28 M
ARCH
2017
Commission européenne, B-1049 Bruxelles / Europese Commissie, B-1049 Brussel
Belgium
Tel.: +32 2 299 11 11.
SUU, Alm.del - 2016-17 - Bilag 391: Orientering vedrørende sag om momsfritagelse af fertilitetsbehandling, fra skatteministeren
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th
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The Chair welcomed the delegations to the 108
th
meeting of the VAT Committee.
Procedural and housekeeping points
Language regime: It was possible to speak in and listen to FR-DE-EN-ES-IT-PL.
The secretariat of the VAT Committee should be notified in a timely manner about any
staff changes that affect the composition of national delegations and the access rights to
the CIRCABC site.
Next meeting: The next meeting will probably take place at the beginning of December
2017.
Topical issues in the Council
The Chair briefly mentioned the latest developments in Council:
-
-
E-commerce: The discussions on the proposal are progressing well. The following
meeting was scheduled for 4 April 2017.
Generalised Reverse Charge: The proposal was put on the agenda of the ECOFIN
Council meeting of 21 March 2017 in order to exchange views and give
orientations on the approach to take in future discussions of the Working Party on
Tax Questions.
VAT rates for e-publications: The proposal was also discussed in the ECOFIN
Council meeting of 21 March and is to be taken up again in the Working Party on
Tax Questions to continue the technical work.
-
Other topical issues
-
Fiscalis 2020 Workshop on "Review of the special scheme for small enterprises
under the VAT Directive 2006/112/EC" in
Wrocław
on 20-22 March 2017: The
Chair thanked the Polish delegation for their administration's successful
organisation of the Workshop. The Workshop had been an opportunity for
exchanges between administrations and other stakeholders from which the
Commission services had taken home important input for the preparation of their
legislative proposal for a comprehensive simplification package for SMEs.
A
DOPTION OF THE AGENDA
(Document taxud.c.1(2017)1563116 REV)
The agenda was adopted as proposed. Changes in the order of treatment of a number
of agenda points were explained and agreed.
1.
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2.
R
EPORT ON THE RESULTS OF THE WRITTEN PROCEDURES
The Chair stated that the minutes of the 107
th
meeting of 8 July 2016 had been
agreed in written procedure with comments sent by one delegation regarding the
quality of the machine translation into German.
As to the sets of guidelines already agreed in written procedure, these were all made
available on CIRCABC and had also been made available on the Directorate
General's public website. All guidelines resulting from the last meeting had been
agreed, however, a very limited number of written procedures on guidelines from
previous meetings are still on hold.
A consultation request by Croatia pursuant to Article 102 of the VAT Directive had
been successfully concluded in written procedure on 16 January 2017.
3.
I
NFORMATION POINTS
The Chair informed delegations that contrary to previous meetings there was
nothing particular to report back from OECD activities on VAT issues.
4.
4.1
LEGISLATION
M
ATTERS CONCERNING
RECENTLY ADOPTED
EU VAT
PROVISIONS
N
EW
THE
IMPLEMENTATION
OF
Commission
Article 58 and Annex II of the VAT Directive
Article 7 and Annex I of the VAT Implementing Regulation
Subject:
VAT 2015: Scope of the notion of electronically supplied
services; minimal human intervention (second follow-up)
(Document taxud.c.1(2017)1270284
Working paper No 919)
The Commission services introduced the Working paper. Delegations were
reminded of the work that had already been undertaken with regard to the issue.
Following first discussions during the 102
nd
meeting guidelines were agreed in
Working paper No 862 FINAL regarding the notion of electronically supplied
services. These guidelines contained first indicators to help assess whether there is
only "minimal human intervention" in a supply which is one of the essential
elements to qualify a service as an electronically supplied service.
On the basis of Working paper No 896, an exchange of views in the 106
th
meeting
followed up on those initial discussions. Possible additional indicators were
presented and the notion of "minimal human intervention" was further analysed.
During the exchanges it was remarked that Working paper No 896 focused too much
on online gambling services whilst more examples were needed from different
sectors to better capture the meaning of "minimal human intervention". The
Commission services therefore invited delegations after that meeting to contribute
with additional examples from their experience.
The present Working paper No 919 in its section 2 sets out the indicators agreed in
the guidelines resulting from the 102
nd
meeting and the further indicators mentioned
3/16
Origin:
References:
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in Working paper No 896. Section 3 of the Working paper presents a set of
14 additional examples provided by delegations and analyses them with the help of
the indicators already agreed or developed to test whether these are robust and
whether other indicators could be identified in addition. At the end of the Working
paper three additional indicators for "minimal human intervention" were presented
taking into account the analysed examples.
The Chair thanked delegations who had submitted examples for analysis in the
Working paper and then opened the floor for discussions.
Less than half of the delegations took the floor. Apart from some comments on
specific examples in the Working paper there was overall agreement with the
Commission services' analysis. One delegation specifically agreed to the drafting of
guidelines but voiced caution that these should not be overly prescriptive
considering that services were continuously developing.
The Chair concluded that the drafting of guidelines would be attempted taking into
account the remarks made during the discussions.
4.2
Origin:
Subject:
(oral
exchange)
Commission
VAT treatment of vouchers
The Commission services had arranged for an oral exchange in order to facilitate
transposition by Member States of Council Directive (EU) 2016/1065 into their
national law.
Delegations discussed between them a number of issues raised as to the
interpretation of that Directive as regards the VAT treatment of vouchers whose
provisions will be applicable from 1 January 2019.
5.
5.1
Q
UESTIONS CONCERNING THE APPLICATION OF
EU VAT
PROVISIONS
Origin:
Denmark
Reference:
Article 132(1)(b) and (c)
Subject:
VAT treatment of fertility treatments
(Document taxud.c.1(2017)751354
Working paper No 916)
The Commission services presented the Working paper that had been drafted
following a request from Denmark. The Danish authorities asked to which extent
fertility treatment is covered by the exemption of Article 132 of the VAT Directive.
They explained that their national case-law had resulted in a practice by which
fertility treatment can only be exempted in certain cases. An ongoing debate at
national level, however, was strongly advocating a general exemption for fertility
treatments and therefore the Danish authorities were also interested in hearing other
delegations' views on the issue.
The Commission services reminded delegations of previous discussions in the VAT
Committee with regard to the exemption for medical care and specifically the
exchanges held on cosmetic surgery for which it also had been difficult to delimit
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the cases where the granting of the exemption could be seen in line with the wording
of the provisions of the VAT Directive. The Commission services stressed that,
given that the pertinent VAT legislation dates from 1977 and medical science and
technology had in the meantime evolved considerably, interpretation issues had
become inevitable. The doctrine derived from rulings of the Court of Justice of the
European Union (CJEU), however, clearly demanded a strict interpretation of the
exemptions and therefore caution and unanimity would be needed in order to agree
on a broader approach.
The Chair invited the Danish delegation to take the floor. The Danish delegation
thanked the Commission services for their analysis of the issues tabled and stated
that they were particularly content that the Commission services shared their view
that the exemption could apply even when the fertility treatment is given to the
partner in a heterosexual couple who does not suffer from infertility or reduced
fertility. They insisted, however, that the exemption should also be extended to
cover single women or women in a homosexual relationship with no indication of
infertility/reduced fertility.
In the ensuing discussions less than half of the delegations asked for the floor. The
majority of them favoured a broad application of the exemption for fertility
treatments, even in cases where no medical condition exists. A few delegations,
however, stated that the wording of the Directive should be respected and that
fertility treatments should be exempt for medical reasons only.
The Chair concluded that delegations seemed to be in favour of a broad application
of the exemption and announced that the Commission services would proceed with
drawing up guidelines on the issue, paying particular attention to ensuring a
unanimously agreed line.
5.2
Origin:
Reference:
Subject:
France
Article 135(1)(b)
Possible qualification of advisory services
intermediaries as negotiation of credit
(Document taxud.c.1(2016)6870737
Working paper No 912)
by
credit
The Commission services introduced the Working paper established in response to a
request from France. The scenario submitted by the French authorities for analysis
and discussion is the following: A taxable person, the "credit intermediary", supplies
financial advisory services in respect of credits relating to immovable property to his
client, a potential borrower. The financial advice would consist in making personal
recommendations to the client in view of the client's signing of a mortgage contract
with a third party credit provider, for example a bank. Such financial advice would
be part of preparatory work leading to the negotiation of credit and independent
from the conclusion of a possible mortgage agreement with a third party. The "credit
intermediary" in this scenario gives his advice to the borrower independently and
does not act as a mediator between the parties to the credit contract.
The Commission services had arrived at the conclusion that considering the current
VAT provisions and the pertinent case-law it would seem that the "credit
intermediary" in the scenario at hand provides financial advice only and that
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therefore the exemption pursuant to Article 135(1)(b) of the VAT Directive cannot
be granted on the basis of it constituting "negotiation of credit". "Negotiation of
credit" which could be exempted would require a distinct act of mediation between
the two parties to a credit contract which is not the case in the scenario at hand.
If, however, the "credit intermediary" acted as an intermediary between the two
parties to the credit contract his provision of financial advice could be seen as
ancillary to an exempt principal supply which consists in the negotiation of credit
and could thus also be exempted.
The Chair invited the French delegation to take the floor. The French delegation
explained the context that had triggered their question and thanked the Commission
services for having taken it up.
Several other delegations contributed to the exchange with some stating that they
shared the Commission services' analysis. One delegation pointed out that their
national rulings on the matter were contrary to the position taken by the Commission
services.
In reply to doubts voiced, the Commission services remarked that in their view it is
not important for the VAT treatment whether a credit agreement is finally concluded
or not. Negotiation that in the end does not lead to a credit contract could still fall
under negotiation of credit and could be exempted. They further underlined that
there is no legal basis to exempt mere advisory services under Article 135(1)(b)
unless provided in the context of a distinct act of intermediation, as already
explained.
Concluding, the Chair stated that the preparation of guidelines might be useful.
5.3
Commission
Articles 2(1)(c) and 135(1)(b) and (d)
VAT treatment of transactions involving non-performing loans
(NPLs)
(Document taxud.c.1(2017)829746
Working paper No 917)
The Commission services briefly presented the Working paper which they had
prepared at their own initiative in order to discuss and assure a consistent VAT
treatment of transactions dealing with non-performing loans (NPLs) which are still a
common feature in the aftermath of the economic crisis. They explained that the
Working paper looks into the VAT treatment of the sale of NPLs from the point of
view of the seller and from that of the purchaser as well as that of services consisting
in the management of NPLs that are supplied by so-called servicing companies to
holders of NPLs. For all cases an assessment is carried out whether there is a taxable
supply of services and, if that is found to be the case, it is examined whether an
exemption pursuant to Article 135(1) could be applicable.
Following the presentation a short discussion took place with the participation of
several delegations that shared the analysis of the Commission services and also
made some remarks on specific points or asked for clarifications.
Origin:
References:
Subject:
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The Chair announced the drafting of guidelines that would also try to address the
issues raised during discussions.
5.4
Origin:
Reference:
Subject:
Commission
Article 11
Meaning of "financial, economic and organisational links"
among VAT group members
(Document taxud.c.1(2017)982178
Working paper No 918)
The Commission services gave their introduction to the Working paper. They
explained that it had been established in follow-up to the in-depth discussions held
during the Fiscalis 2020 Seminar on "Modernising VAT Groups" in Dublin in
September 2016 which had brought together representatives of national
administrations in the Group on the Future of VAT (GFV) and business
representatives who are members of the VAT Expert Group (VEG).
The conclusions at the Seminar had been that more clarity was needed on how to
interpret the provisions in Article 11 of the VAT Directive after some recent rulings
handed down by the CJEU that partly run counter to what the Commission had
expressed in its Communication on VAT Grouping in 2009. There had been
consensus among Seminar participants that before contemplating possible legislative
changes to the grouping provisions in the VAT Directive updated guidance on how
to understand the concept of "financial, economic and organisational links" should
be prepared as a short-term realistic goal in order to provide more legal certainty for
both businesses and tax administrations.
After the
CJEU’s
judgments it was clear that the bar had to be lowered as to the
minimum conditions for determining the existence of a financial link between VAT
group members. The Working paper therefore sought to suggest what could be
options for the minimum content of the financial link test and possible presumptions
for the assessment of such link. The Working paper also examined the economic and
organisational links with the objective to clarify their meaning. The Commission
services expressed that this requirement in the VAT Directive is a threefold
cumulative condition, and that the three links have to be assessed separately.
In the ensuing discussions less than half of the delegations asked for the floor with
some of them intervening more than once.
As to the Commission services' approach of the issue as such, delegations were split
in two groups. One group disagreed that there should be uniform EU-wide tests with
regard to the links and insisted that the definition of links should be done at national
level. They held that harmonisation could only be brought about by legislative
changes and not by guidance. It was also said that, while agreeing with the fact that
the three links have to be simultaneously present, it would be better to define one
condition which could cover all of them, rather than laying down three different
definitions (one for each link). The other group followed the Commission services in
that it was appropriate to seek to define minimum standards and concurred that all
three links mentioned in the VAT Directive should be assessed.
The Chair in response to a number of remarks reiterated that at the Fiscalis 2020
Seminar there had been demands expressed for clarification and a wish for guidance
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expressed by both Member States and businesses. As the matter concerned the
interpretation of existing rules, the VAT Committee, and not the GFV, was the
appropriate forum for exchanges with the national administrations. The Commission
services also intended to discuss the Working paper at the next meeting of the VEG.
Further, concerning the links tests, reading Article 11 of the VAT Directive it was
evident that the existence of financial, economic and organisational links was meant
as a cumulative requirement. With intra-group transactions falling outside the scope
of VAT, obviously there should be a minimum of requirements to be met for
forming a VAT group and Member States could not do whatever they wished in that
matter.
During the second part of the exchanges, several delegations took the floor to
comment on the concrete options and presumptions as set out by the Commission
services in the Working paper. In response to the remarks, the Chair gave
clarifications and also stated to take good note of the different opinions expressed.
No firm conclusions could be drawn from the difficult discussions. The Commission
services would reflect on how to take this further and all delegations were invited to
send comments. Discussions with stakeholders on the issue would take place in the
VEG meeting on 24 April 2017.
5.5
Origin:
Commission
References:
Articles 2(1), 72, 73, 80, 83 and 85
Subject:
Possible
VAT implications of Transfer Pricing
(Document taxud.c.1(2017)1280928
Working paper No 923)
The Chair made a few introductory remarks explaining that the Working paper was
on purpose kept high-level, without going into too much detail, to have a first
exchange of views in order to gauge the interest of the delegations and their thinking
regarding the relevance of the issue of transfer pricing with regard to VAT. In
parallel, a "mapping exercise" was being conducted in the EU VAT Forum with
representatives of national administrations and business stakeholders. It was also
foreseen to bring the subject matter to the next meeting of the VEG.
The Commission services then presented the different parts of the Working paper.
Its section 2 is dedicated to the legal framework and the basic concepts of transfer
pricing, such as the arm's length principle and transfer pricing adjustments either
made by the tax administration or by the taxpayer, that are of potential interest from
a VAT perspective.
Section 3.1 looks at the VAT provisions on the taxable amount (Article 73 of the
VAT Directive) and the VAT Directive's equivalent to the arm's length principle
(the open market value pursuant to Articles 72 and 80). According to the settled
case-law of the CJEU, for VAT purposes the taxable amount for the supplies of
goods or services is represented by the consideration actually received for them. The
open market value has a much narrower scope than the arm's length principle for
transfer pricing purposes in direct taxation and only applies under a set number of
exhaustive conditions as an anti-avoidance measure which is to be considered an
exception to the general rule.
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Under section 3.2 it is assessed whether transfer pricing adjustments could have
VAT implications. That might be the case where the transfer pricing adjustment
could be regarded as higher or lower consideration given in exchange for a taxable
supply already made that then leads to a modification of the taxable amount of that
transaction for VAT purposes. A case-by-case analysis would need to establish
whether there is a supply made in exchange for consideration and whether there is a
direct link between the supply and the consideration. However, the general rule as
regards the taxable amount is that laid down in Article 73 and therefore transfer
pricing adjustments for direct taxation purposes should not all result in a
modification of the VAT taxable amount as this would go against the spirit of the
VAT Directive.
Finally, section 3.4 of the Working paper sets out guidance on what has to be kept in
mind when discussing on the interaction between transfer pricing and VAT and the
possible VAT implications of transfer pricing.
After the presentation the Chair invited comments from the delegations. Several
delegations asked for the floor. There was consensus that the Working paper was
most welcome as it raised awareness of the issue. The delegations that engaged in
the discussions all stressed that there were no particular problems that had been
brought to their attention and also reported that the rather keen interest in the subject
matter shown by business stakeholders in the EU VAT Forum was then not followed
up by them concretely with clarifications and examples of cases to discuss.
The Chair concluded the following:
The Commission services had thought it necessary to bring the issue of transfer
pricing to the VAT Committee for a first exchange.
Transfer pricing could have an impact in some concrete cases, but those would
be subject to a case-by-case assessment. In that respect it was noted that whilst
business stakeholders had raised transfer pricing as an issue no concrete
examples had yet been submitted for discussion. The subject matter would
therefore be tabled at the next VEG meeting for exchanges.
The Commission services for the time being would not produce additional
Working papers on the issue unless delegations raised specific angles to assess
more in depth. The present Working paper would, however, be put again on the
agenda of the next VAT Committee as a reminder for delegations to reflect
further and for the Commission services to report back from the feedback
obtained in the VEG meeting.
5.6
Origin:
Reference:
Subject:
Germany
Article 138
Substantive importance of the VAT identification number of the
recipient (acquirer of the goods) for the exemption of intra-
Community supplies
(Document taxud.c.1(2017)1395441
Working paper No 921 REV)
The Commission services presented the Working paper established upon a request
from Germany, already submitted in 2015, and explained that the discussion in the
VAT Committee had been put on hold in the await of the ruling of the CJEU in case
C-24/15,
Plöckl,
delivered on 20 October 2016. Further, this ruling had been
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followed by another one on the same subject matter in case C-21/16,
Euro-Tyre,
delivered on 9 February 2017.
At the time that Germany transmitted the request two CJEU rulings dating back to
September 2012 had already dealt with the importance of the VAT identification
number in the context of intra-Community supplies (cases C-273/11,
Mecsek-
Gabona Kft,
and C-587/10,
VSTR).
After the four aforementioned rulings on this
issue the CJEU had made clear that in the context of intra-Community supplies of
goods the communication of the VAT identification number of the acquirer of the
goods constitutes a formal requirement as regards the right of the supplier to exempt
his intra-Community supply. However, the supplier cannot be refused exemption on
the grounds of not having provided the VAT identification number of the acquirer
when the substantive conditions set out in Article 138(1) of the VAT Directive are
met.
The Commission services concurred with the German delegation that the VAT
identification number is for the supplier a means of proving that the acquirer is a
taxable person acting as such in a Member State other than that where dispatch of
the goods begins and that a missing VAT identification number from the acquirer
should be a signal to the supplier that the transaction is risky. However, the VAT
provisions as they currently stand do not leave room for a blanket refusal of granting
exemption to the supplier when there is conclusive evidence that the substantive
conditions of the exemption have been met. Only a change of the legislative
provisions could enhance the status of the VAT identification number.
Notwithstanding the above, where fraud has occurred and the supplier has not acted
in good faith, or has not taken all measures which can be reasonably required to
satisfy himself that the transaction carried out had not resulted in a participation in
VAT fraud, the tax authorities should refuse the exemption. Further, if the supplier
is unable to produce the VAT identification number of the acquirer, Member States
could impose appropriate and proportionate sanctions on that supplier for not having
met this formal condition of the exemption.
The German delegation thanked the Commission services for having treated their
question and for sharing their concerns as to the importance of the VAT
identification number.
The Chair, after reminding delegates that the VAT Committee could only decide on
guidelines but could not discuss legislative proposals, invited all the other
delegations to voice their views.
Less than half of the delegations asked for the floor. They all shared the analysis
made by the Commission services and the concerns uttered by the German
delegation. Nearly all of them also expressly supported the drafting of guidelines
and asked for a legislative proposal on the matter. A few delegations remarked that
guidelines should be drafted with caution as not to undermine the CJEU rulings.
Concluding, the Chair announced that having taken note of all interventions and the
concerns expressed the Commission services would draft a set of guidelines in a
careful manner and would prepare a legislative proposal for adoption by the
Commission during 2017.
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* 5.7
Origin:
References:
Subject:
Austria
Articles 2, 9, 13, 24(2) and 151
VAT treatment of the "EU SatCom project" by the European
Defence Agency
(Document taxud.c.1(2017)1271091
Working paper No 920)
[…]
5.8
Origin:
References:
Subject:
Poland
Articles 167, 168, 173, 174, 184, 185 and 187
Adjustment of input VAT deduction where a taxable person is
carrying out both economic activities and non-economic
activities
(Document taxud.c.1(2017)1279716
Working paper No 922)
The Commission services introduced the Working paper that had been drafted upon
a request by Poland. The Polish authorities sought clarification on the possibility of
adjusting input VAT deduction where a taxable person performs economic activities
as well as non-economic activities outside the scope of VAT, such as activities
performed in his capacity of a public authority or the activities of associations and
foundations which are not carried out for consideration. The Polish authorities asked
concretely whether such a taxable person can perform a positive adjustment in his
favour in respect of input VAT incurred on capital goods used partly for his
economic and partly for his non-economic activities where the initially allocated
part for economic activities has increased.
The Commission services stated that they fully shared the view of the Polish
authorities that there is the obligation for a taxable person to perform a negative
adjustment of the initially deducted input tax in cases where the initial use of the
capital goods for business purposes decreases whilst in the opposite case of a later
increase in the use of the capital goods beyond the initially allocated proportion no
positive adjustment can be carried out.
They further explained that there is extensive case-law by the CJEU that the
deduction scheme established by the VAT Directive relates to all economic
activities, whatever their purpose or results, provided that they are themselves
subject to VAT. Consequently, input VAT incurred by a taxable person on
expenditure relating to non-economic activities, as these fall outside the scope of
VAT, cannot give rise to the right of deduction of VAT. Additionally, where a
taxable person simultaneously carries out economic activities (taxed or exempt) and
non-economic activities falling outside the scope of VAT, deduction is allowed only
to the extent that the expenditure in question is attributable to the taxable person's
economic activity.
Article 167 of the VAT Directive provides for a right to deduct which arises at the
time the deductible tax becomes chargeable which pursuant to Article 63 is the time
when the goods (or services) are delivered. This means for the scenario submitted by
Poland that only the capacity in which a person is acting at the time when the capital
goods are delivered to him can determine the existence of the right to deduct. To
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obtain a right to deduct in respect of these capital goods, the person has to be a
taxable person and act as such at the time of their purchase.
When, for example, bodies governed by public law within the meaning of Article 13
of the VAT Directive at the time of their purchase of capital goods act as public
authorities they shall not be regarded as taxable persons and therefore not have any
right of deduction with regard to that purchase and thus no right to adjustment can
arise.
According to the case-law of the CJEU the term "for purposes other than those of his
business" in Article 26 of the VAT Directive has to be interpreted as meaning that
the provision only applies where the goods concerned are put to private use and not
where they are put to another use as part of a non-taxable activity. Activities which
are outside the scope of VAT, such as those performed as a public authority or of
associations and foundations which are not carried out for consideration and which
constitute the main corporate purpose of a taxable person, cannot be considered as
activities made "for purposes other than those of his business" within the meaning of
Article 26.
Therefore, the settled case-law of the CJEU on the mixed use of capital goods and
the option to allocate such assets wholly to the assets used as a taxable person,
which in principle allows the input VAT to be deducted immediately and in full,
cannot be transposed to the scenario submitted by Poland.
Upon invitation by the Chair, the Polish delegation took the floor to thank the
Commission services for the analysis which they fully shared. They further
remarked that whilst a provision in the VAT Directive regarding the issue was
lacking there existed extensive case-law on the matter.
In the ensuing discussions several delegations intervened. Apart from a few
delegations that shared the Commission services' analysis, all others which
intervened advocated room for positive adjustments and pointed to Article 168a of
the VAT Directive and the principle of neutrality. One delegation announced to
transmit written input after the meeting.
The Commission services explained that the introduction of Article 168a had at the
time been meant as a quick fix and that the Article had to be looked at together with
the provisions in Article 26 with the same underlying concept and for which there
exists settled case-law. Delegations were reminded that the principle of neutrality
cannot change existing rules but can only apply to legislation as it stands and they
were in this respect referred to the CJEU's ruling of 15 September 2016 in
Potsdam-
Mittelmark
(case C-400/15).
The Chair concluded that the Commission services would reflect on the follow-up to
be given to the issue considering that in light of the discussions unanimity
a priori
appeared to be excluded when trying to agree guidelines.
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5.9
Origin:
Reference:
Subject:
Commission
Article 211
VAT aspects of centralised clearance for customs upon
importation
(Document taxud.c.1(2017)1561748
Working paper No 924)
When introducing the agenda point, the Chair reminded delegations that the
outcome of discussions of a Customs 2020 Project Group held on 13 March 2017
had had to be awaited before the Working paper could be finalised and was made
available to the VAT Committee members on 14 March. Delegations had been
informed in advance of the expected delay that deviated from the normally respected
provisions in the VAT Committee's Rules of Procedure.
The Commission services briefly presented the Working paper. Under centralised
clearance economic operators make customs declarations and pay customs duties in
the supervising Member State. However, import declarations and the payment of
import VAT have to be done in the Member State of presentation. The requirements
regarding data, format and timescale for the submission of import VAT declarations
are not harmonised and vary from one Member State to the other.
As explained in the Working paper, the Customs 2020 Project Group is discussing
the development and deployment of an electronic system, "Centralised Clearance for
Import" (CCI), whose launch is envisaged for 1 October 2020. Technical
specifications will need to be agreed on by the second quarter of 2018. Once in
place, the CCI system will provide for a harmonised and automated information
exchange between national customs offices which should also include a harmonised
solution for the exchange of VAT data providing that only the VAT taxable amount
and the method of VAT payment should be communicated by the supervising
Member State to the participating Member States. This data should be sufficient for
the participating Member States to correctly assess and levy the import VAT due.
The Working paper was prepared 1) to inform the delegations of the state of play of
discussions in that Customs 2020 Project Group with regard to the VAT solution of
the CCI system and obtain their feedback and 2) to invite all delegations to send any
updates or confirmation of correctness of the data concerning their national VAT
payment and collection regimes as mentioned in the Annex to the Working paper to
the Commission services by 30 April 2017.
In the ensuing exchange several delegations asked for the floor, mainly to provide
first information on their national payment methods for import VAT. A number of
delegations took the floor expressly to support the solution proposed as well as the
additional recommendations set out in the Working paper.
Responding to a few specific questions, the Commission services explained the
following: the supervising Member State cannot validate VAT rates of the
participating Member States as all data would be automated and information on the
VAT taxable amount and other information on the goods import (in particular CN
codes) would be sufficient for the participating Member States to correctly assess
and levy import VAT. One delegation commented that the participating Member
State does need to know the VAT taxable amount per VAT rate in order to be able
to levy import VAT and that the supervising Member State does not need to validate
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VAT rates because this information only relates to value added taxation. The
Commission services responded that the participating Member States have to require
a separate import declaration from the importer for VAT purposes (except where
import VAT can be paid in the VAT return as provided for in the second paragraph
of Article 211 of the VAT Directive). Further, they explained that information on
currency exchange rates would already be included in the customs declaration. The
system would concern B2B supplies of big companies and was not meant for small
consignments. With regard to excise duties, it was envisaged to exclude excisable
goods from phase 1 of the project.
The Chair closed the discussions reminding all delegations to send their feedback
regarding the data required by the deadline stipulated.
6.
6.1
C
ASE LAW
I
SSUES ARISING FROM RECENT JUDGMENTS OF THE COURT OF JUSTICE
OF THE
E
UROPEAN
U
NION
Origin:
Commission
Subject:
Recent judgments of the Court of Justice of the European Union
(Document taxud.c.1(2017)1276391– Information paper)
Delegations took note of the Information paper. No delegation took the floor to
request the assessment of a listed judgment.
7.
7.1
A
NY OTHER
B
USINESS
Origin:
Subject:
Commission
Informing the VAT Committee of options exercised under
Articles 80, 167a, 199 and 199a of Directive 2006/112/EC
(Document taxud.c.1(2017)1275987
Information paper)
The Chair briefly drew delegations' attention to the Information paper regarding
recently notified options exercised under Article 199a, thanked the delegations
concerned and invited all delegations to notify without delay whenever necessary.
Conclusion
The Chair closed the meeting by thanking specifically the interpreters for their much
appreciated contribution to the long meeting.
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ANNEX
LIST OF PARTICIPANTS - LISTE DES PARTICIPANTS - TEILNEHMERLISTE
BELGIQUE/BELGIË/BELGIUM
ЪЛГ РИЯ/BULGARIA
ČESKÁ REPUBLIKA/CZECH REPUBLIC
DANMARK/DENMARK
DEUTSCHLAND/GERMANY
EESTI/ESTONIA
ÉIRE/IRELAND
ΛΛÁ Α/GREECE
ESPAÑA/SPAIN
FRANCE
HRVATSKA/CROATIA
ITALIA/ITALY
KYIIPOΣ/CYPRUS
LATVIJA/LATVIA
LIETUVA/LITHUANIA
LUXEMBOURG
MAGYARORSZÁG/HUNGARY
MALTA
NEDERLAND/NETHERLANDS
15/16
Ministry of Finance
Ministry of Finance
NRA
Ministry of Finance
Ministry of Taxation
Customs and Tax Administration
BMF
Länderbeobachter (Bundesrat)
Ministry of Finance
Permanent Representation
Revenue Commissioners
Permanent Representation
Ministry of Finance
Permanent Representation
Ministry of Finance
Ministry of Finance
Agenzia delle Entrate
Dipartimento delle Finanze
Ministry of Finance
Ministry of Finance
State Revenue Service
Ministry of Finance
AED
Ministry for National Economy
Permanent Representation
Ministry of Finance
Ministry of Finance
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ÖSTERREICH/AUSTRIA
POLSKA/POLAND
PORTUGAL
ROMÂNIA/ROMANIA
SLOVENIJA/SLOVENIA
SLOVENSKO/SLOVAKIA
SUOMI/FINLAND
SVERIGE/SWEDEN
UNITED KINGDOM
EUROPEAN COMMISSION
Ministry of Finance
Ministry of Finance
Permanent Representation
Ministry of Finance
Ministry of Finance
Ministry of Finance
Ministry of Finance
Ministry of Finance
Tax Administration
Ministry of Finance
Tax Agency
HMRC
16/16