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"B COUNCIL DECISION
of 18 January 1999
authorising the Kingdom of Spain to apply a measure derogating from Articles 2 and 28a(1) of the Sixth
Directive (77/388/EEC) on the harmonisation of the laws of the Member States relating to turnover taxes
(1999/81/EC)
(OJ L 27, 2.2.1999, p. 26)
Amended by:
Official Journal
No page date
"M1 Council Decision 2001/243/EC of 19 March 2001 L 88 15 28.3.20011999D0081 — EN — 01.01.2001 — 001.001 — 1
COUNCIL DECISION
of 18 January 1999
authorising the Kingdom of Spain to apply a measure derogating from
Articles 2 and 28a(1) of the Sixth Directive (77/388/EEC) on the
harmonisation of the laws of the Member States relating to turnover taxes
(1999/81/EC)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to the Sixth Council Directive (77/388/EEC) of 17 May 1977
on the harmonisation of the laws of the Member States relating to turnovertaxes — common system of value-added tax: uniform basis for assessment (
1)
and in particular Article 27 thereof,
Having regard to the proposal from the Commission,
Whereas, pursuant to Article 27(1) of Directive 77/388/EEC, the Council,
acting unanimously on a proposal from the Commission, may authorise anyMember State to introduce special measures for derogation from that
Directive in order to simplify the procedure for charging the tax or to prevent
certain types of tax evasion and avoidance;
Whereas, by letter registered with the Commission on 23 January 1998, the
Kingdom of Spain requested authorisation to introduce a measure derogating
from Articles 2 and 28a(1) of Directive 77/388/EEC;
Whereas, in accordance with Article 27(3) of Directive 77/388/EEC, the other
Member States were informed on 18 February 1998 of the request submitted
by the Kingdom of Spain;
Whereas the first purpose of the special measure is to exempt the supply and
intra-Community acquisition of used and waste materials consisting of paper,board or glass, in the case of taxable persons whose sales of such products in
the previous year were worth not more than PTA 50 million;
Whereas the second purpose of the measure is to exempt the supply and
intra-Community acquisition of used and waste material consisting of ferrousmetals, in the case of taxable persons whose sales of such products in the
previous year were worth not more than PTA 200 million;
Whereas the third purpose of the measure is to exempt the supply and
intra-Community acquisition of non-ferrous metals, irrespective of theturnover for sales of such goods;
Whereas traders are not entitled to deduct V AT in respect of transactions
exempted under these special measures;
Whereas the taxable persons whose transactions are covered by the above
exemptions may, subject to the conditions laid down by the Kingdom of
Spain, be authorised not to apply that measure to their transactions;
Whereas this measure both simplifies matters and helps to combat fraud since
a category of taxable persons where checks and efforts at collection would bedisproportionate to the revenue generated can be excluded from the V AT
system;
Whereas, consequently, the special measure satisfies the conditions laid down
in Article 27 of Directive 77/388/EEC;
Whereas the Commission adopted on 10 July 1996 a work programme,
together with a timetable, for the phased introduction of a common system of
V AT for the single market;
Whereas authorisation should be granted until 31 December 2000 so that an
assessment can then be made of the compatibility of the measure with the
overall approach adopted for the new common system of V AT;
Whereas this derogation will have no impact on the European Communities’
own resources accruing from V AT,!B
(1) OJ L 145, 13. 6. 1977, p. 1. Directive as last amended by Directive 96/95/EC (OJ L
338, 28. 12. 1996, p. 89).1999D0081 — EN — 01.01.2001 — 001.001 — 2
HAS ADOPTED THIS DECISION:
Article 1
The Kingdom of Spain is hereby authorised until 31 December 2003 to apply
a special measure for taxation of used and waste materials that containsprovisions derogating from the Sixth Directive 77/388/EEC.
The provisions in question are laid down in Articles 2, 3 and 4 below.
Article 2
By way of derogation from Article 2(1) of Directive 77/388/EEC, the
following shall be exempt from V AT:
— the supply of used and waste materials consisting of paper, board or glass,
in the case of taxable persons whose sales of such products in the
previous year were worth not more than PTA 50 million,
— the supply of used and waste materials consisting of ferrous metals, in the
case of taxable persons whose sales of such products in the previous year
were worth not more than PTA 200 million,
— the supply of non-ferrous metals.
Article 3
By way of derogation from Article 28a(1)(a) of Directive 77/388/EEC, the
following shall be exempt from V AT:
— the intra-Community acquisition of used and waste materials consisting
of paper, board or glass, in the case of taxable persons whose sales of
such products in the previous year were worth not more than PTA 50million,
— the intra-Community acquisition of used and waste materials consisting
of ferrous metals, in the case of taxable persons whose sales of such
products in the previous year were worth not more than PTA 200 million,
— the intra-Community acquisition of non-ferrous metals.
Article 4
Taxable persons whose transactions come within the scope of the exemptions
laid down in Articles 2 and 3 may be authorised not to subject such supplies
and intra-Community acquisitions to the particular arrangements laid down in
this Decision.
Article 5
This Decision is addressed to the Kingdom of Spain.!B
!M1
!B1999D0081 — EN — 01.01.2001 — 001.001 — 3