# Council Implementing Decision of 15 November 2013 authorising Luxembourg to introduce a special measure derogating from Article            285 of Directive 2006/112/EC on the common system of value added tax (2013/677/EU)         

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U.K.

# Council Implementing Decision

# of 15 November 2013

# authorising Luxembourg to introduce a special measure derogating from Article 285 of Directive 2006/112/EC on the common system                        of value added tax                     

# (2013/677/EU)

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 Article 395(1) thereof,                        

Having regard to the proposal from the European Commission,

Whereas:

(1)By letter registered with the Secretariat-General of the Commission on 24 October 2012, Luxembourg requested authorisation                              to apply a measure derogating from Article 285 of Directive 2006/112/EC, allowing Luxembourg to exempt from value added tax                              (VAT) taxable persons whose annual turnover is no higher than EUR 25 000. Through that measure, those taxable persons would                              be exempted from all or some of the obligations in relation to VAT referred to in Chapters 2 to 6 of Title XI of Directive                              2006/112/EC.

(2)In accordance with Article 395(2) of Directive 2006/112/EC, the Commission informed the other Member States of the request                              made by Luxembourg by letter dated 9 November 2012. By letter dated 12 November 2012, the Commission notified Luxembourg that                              it had all the information necessary to consider the request.

(3)According to Article 285 of Directive 2006/112/EC, Member States, which have not exercised the option under Article 14 of                              Second Council Directive 67/228/EEC(2), may exempt from VAT taxable persons whose annual turnover is no higher than EUR 5 000 or the equivalent in national currency                              and may also grant graduated tax relief to taxable persons whose annual turnover exceeds the ceiling fixed by them for its                              application.

(4)Luxembourg has informed the Commission that it currently exempts from VAT taxable persons whose annual turnover is no higher                              than EUR 10 000 and that it makes use of the option of granting graduated tax relief with respect to taxable persons whose                              annual turnover is between EUR 10 000 and EUR 25 000. Luxembourg has requested the authorisation to exempt from VAT, as a                              derogating measure, taxable persons whose annual turnover is no higher than EUR 25 000.

(5)A higher threshold for the special scheme is a simplification measure, in so far as it may significantly reduce the VAT obligations                              of small businesses and would enable Luxembourg to cease applying the graduated tax relief scheme that is burdensome for businesses.                              Taxable persons should be still able to opt for the normal VAT arrangements.

(6)On 29 October 2004, the Commission has adopted a proposal for a Council Directive amending Sixth Council Directive 77/388/EEC(3) with a view to simplifying valued added tax obligations, which included provisions aimed at allowing Member States to set                              the annual turnover ceiling for the VAT exemption scheme at up to EUR 100 000 or the equivalent in national currency, with                              the possibility of updating that amount each year. This Decision is in line with that proposal.

(7)The derogating measure has only a negligible effect on the overall amount of tax collected at the stage of final consumption                              and will not adversely affect the Union’s own resources accruing from VAT,

HAS ADOPTED THIS DECISION:

# [F1Article 1U.K.

By way of derogation from Article 285 of Directive 2006/112/EC, Luxembourg is authorised to exempt from VAT taxable persons                        whose annual turnover is no higher than EUR 35 000.                   

Textual Amendments

F1Substituted by Council Implementing Decision (EU) 2019/2210 of 19 December 2019 amending Implementing Decision 2013/677/EU authorising Luxembourg                                 to introduce a special measure derogating from Article 285 of Directive 2006/112/EC on the common system of value added tax.

# Article 2U.K.

This Decision shall apply until the earlier of the following two dates:                   

31 December 2022;                            

the date from which Member States are to apply any national provisions that they are required to adopt in the event that a                                 directive is adopted amending Articles 281 to 294 of Directive 2006/112/EC on a special scheme for small enterprises.]                            

Textual Amendments

F1Substituted by Council Implementing Decision (EU) 2019/2210 of 19 December 2019 amending Implementing Decision 2013/677/EU authorising Luxembourg                                 to introduce a special measure derogating from Article 285 of Directive 2006/112/EC on the common system of value added tax.

# Article 3U.K.

This Decision is addressed to the Grand Duchy of Luxembourg.

1

OJ L 347, 11.12.2006, p. 1.                           

2

Second Council Directive 67/228/EEC of 11 April 1967 on the harmonization of legislation of Member States concerning turnover                              taxes, structure and procedures for application of the common system of value added tax (OJ 71, 14.4.1967, p. 1303/67).                           

3

Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonization of the laws of the Member States relating to turnover                              taxes — Common system of value added tax: uniform basis of assessment (OJ L 145, 13.6.1977, p. 1).