# Council Implementing Decision of 15 November 2013 authorising Romania to continue to apply a special measure derogating from            Article 193 of Directive 2006/112/EC on the common system of value added tax (2013/676/EU)         

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U.K.

# Council Implementing Decision

# of 15 November 2013

# authorising Romania to continue to apply a special measure derogating from Article 193 of Directive 2006/112/EC on the common                        system of value added tax                     

# (2013/676/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 13 March 2013, Romania requested authorisation for                              the extension of a special measure derogating from Article 193 of Directive 2006/112/EC in relation to supplies of wood products.

(2)In accordance with the second subparagraph of Article 395(2) of Directive 2006/112/EC, the Commission informed the other Member                              States by letter dated 17 June 2013 of the request made by Romania. By letter dated 18 June 2013, the Commission notified                              Romania that it had all the information it considered necessary for appraisal of the request.

(3)Article 193 of Directive 2006/112/EC provides that the taxable person supplying the goods or services is, as a general rule,                              liable for the payment of value added tax (VAT) to the tax authorities.

(4)Council Implementing Decision 2010/583/EU(2) authorised Romania to apply a derogating measure pursuant to Article 395 of Directive 2006/112/EC in order to designate the                              recipient as the person liable for the payment of VAT in the case of supplies of wood products by taxable persons.

(5)Prior to the former authorisation to apply reverse charge to the supplies of wood, Romania had encountered problems in the                              timber market because of the nature of the market and the businesses involved. There is a large number of small enterprises                              in this sector which the Romanian authorities have found difficult to control. Designating the recipient as the person liable                              for the payment of VAT has, according to the Romanian authorities, had the effect of preventing tax evasion and avoidance                              in this sector and therefore remains justified.

(6)The measure is proportionate to the objectives pursued since it is not intended to apply generally, but only to very specific                              operations in a sector which poses considerable problems of tax evasion or avoidance.

(7)The measure should not, in the Commission’s view, have any adverse impact on the prevention of fraud at the retail level or                              in other sectors or in other Member States.

(8)The authorisation should be limited in time until 31 December 2016.

(9)In the event that Romania requires a further extension beyond 2016, a report together with the extension request should be                              submitted to the Commission no later than 1 April 2016. In light of the experience gained up to that date, an assessment should                              be made on whether or not the derogation remains justified.

(10)The derogation has no adverse impact on the Union's own resources accruing from VAT,

HAS ADOPTED THIS DECISION:

# Article 1U.K.

By way of derogation from Article 193 of Directive 2006/112/EC, Romania is hereby authorised until [F131 December 2019] to designate the taxable person to whom the supplies of goods or services referred to in Article 2 of this Decision are made                     as the person liable for the payment of the tax.                  

Textual Amendments

F1Substituted by Council Implementing Decision (EU) 2016/1206 of 18 July 2016 amending Implementing Decision 2013/676/EU authorising Romania                                 to continue to apply a special measure derogating from Article 193 of Directive 2006/112/EC on the common system of value                                 added tax.

# Article 2U.K.

The derogation provided for in Article 1 shall apply to supplies of wood products by taxable persons including standing timber,                     round or cleft working wood, fuel wood, timber products, as well as square edged or chipped wood and wood in the rough, processed                     or semi-manufactured wood.                  

# Article 3U.K.

Any request for the extension of the measure provided for in this Decision shall be submitted to the Commission no later than                     [F11 April 2019], and shall be accompanied by a report which includes an assessment of the efficiency of the measure and an evaluation of                     the risk of fraud in the wood sector.                  

Textual Amendments

F1Substituted by Council Implementing Decision (EU) 2016/1206 of 18 July 2016 amending Implementing Decision 2013/676/EU authorising Romania                                 to continue to apply a special measure derogating from Article 193 of Directive 2006/112/EC on the common system of value                                 added tax.

# Article 4U.K.

This Decision is addressed to Romania.

1

OJ L 347, 11.12.2006, p. 1.                           

2

Council Implementing Decision 2010/583/EU of 27 September 2010 authorising Romania to introduce a special measure derogating                              from Article 193 of Directive 2006/112/EC on the common system of value added tax (OJ L 256, 30.9.2010, p. 27).