EN   EN 
 
 
 EUROPEAN  
COMMISSION   
Brussels, 23.11.2021  
COM(2021) 711 final  
2021/0369 (NLE)  
 
Proposal for a  
COUNCIL IMPLEMENTING DECISION  
amending Implementing Decision 2013/53/EU as regards authorisation to the Kingdom 
of Belgium to apply for a further period the special measure derogating from Article 285 
of Directive 2006/112/EC   
EN 1  EN EXPLANATORY MEMORANDUM  
Pursuant to Article 395(1) of Council Directive 2006/112/EC of 28 November 2006 on the 
common system of valued added ta x (‘the VAT Directive’), the Council, acting unanimously 
on a proposal from the Commission, may authorise any Member State to apply special 
measures for derogation from the provisions of that Directive in order to simplify the 
procedure for collecting VAT o r to prevent certain forms of tax evasion or avoidance.  
By letter regi stered with the Commission on 5  May 2021, Belgium requested an authoris ation 
to continue to apply, until 31 December 2024, a mea sure derogating from Article 285  of the 
VAT Directive, all owing Belgium  to exempt from VAT taxable persons whose annual 
turnover is no higher than EUR 25  000. 
In accordance with Article 395(2), second subparagraph, of the VAT Directive, the 
Commission informed the other Member States by letter dated 29  June 2021 of the request 
made by Belgium . The Commission notified Belgium  by letter dated 30 June 2021 that it had 
all the information necessary to consider the request.  
1. CONTEXT  OF THE  PROPOSAL  
• Reasons for and objectives of the proposal  
Chapter 1 of Title XII of the VAT Directive allows for the possibility for Member States to 
apply special schemes for small enterprises, including the possibility of exempting taxable 
persons below a certain annual turnover. This exemption implies that a taxable person does 
not have to charge VAT on his supplies and, consequently, he or she cannot deduct the VAT 
on his inputs.  
Under Article 285  of the VAT Directive, Member States which did not make use of Article 14 
of Council Directive 67/228/E EC1, can exempt taxable persons whose threshold is no higher 
than EUR 5 000. As Belgium did not make use of this option, this resulted in the application 
of a particularly low threshold which in 2012 corresponded to EUR 5 580.  
At the request of Belgium, by Council Implementing Decision 2 013/53/EU2 the Council 
authorised Belgium to exempt from VAT taxable persons whose annual turnover is no higher 
than EUR 25 000 until 31 December 2015. This decision was first prolonged until 31 
December 2018 by Council Implementing Decision (EU) 2015/23483, and then until 31 
December 2021 by Council Implementing Decision (EU) 2018/20774. 
Belgium requested another extension of that measure for a limited period. Belgium indicated 
that the special measure reduces administrative burden for both taxable persons  and the tax 
                                                 
1 OJ 71, 14.4.1967, p. 1303/67.  
2 Council Implementing Decision 2013/53/EU of 22 January 2013 authorising the Kingdom of Belgium 
to introduce a special measure derogating from Article 285 of Directive 2006/112/EC on the common 
system of value added tax, OJ L 22, 25.1.2013, p. 13. 
3 Council  Implementing Decision (EU) 2015/2348 of 10 December 2015 amending Implementing 
Decision 2013/53/EU authorising the Kingdom of Belgium to introduce a special measure derogating 
from Article 285 of Directiv e 2006/112/EC on the common sys tem of value added t ax, OJ L 330, 
16.12.2015, p. 51. 
4 Council  Implementing Decision (EU) 2018 /2077 of 20 December 2018  amending Implementing 
Decision 2013/53/EU authorising the Kingdom of Belgium to introduce a special measure derogating 
from Article 285 of Directiv e 2006/11 2/EC on the common sys tem of value  added tax, OJ L 331, 
28.12.2018 , p. 222. 
EN 2  EN authority. It therefore contributes to the simplification of tax collection, as set out in Article 
395(1) of the VAT Directive. The measure is and will remain fully optional for taxable 
persons.  
According to Belgium,  at the end of 2019 around 167 000 taxpayers, being 16.5 % of all 
registered taxpayers , made use of the special measure. The impact of the special measure on 
VAT revenues remains negligible, as it does not significantly affect the total amount of 
revenue from VAT or the overall amou nt of tax revenue collected at the stage of final 
consumption.  
The derogating measure, simplifying the obligations of small operators, is in line with the 
objectives set out by the European Union for small bus inesses.  
Given the positive impact on the reduc tion of administrative burden for businesses and the tax 
administration without a major impact on the total VAT revenue, it is appropriate  to authorise 
Belgium to extend the derogation measure  until 31 December 2024 .  
• Consistency with existing policy pro visions in the  policy area  
The derogating measure is in line with the objectives of Directive (EU) 2020/285 amending 
Articles 281 to 294 of the VAT Directive on a special scheme for small enterprises5, which 
resulted from the VAT action plan6, and aims to create a modern, simplified scheme for those 
businesses. In particular, it seeks to reduce VAT compliance costs and distortions of 
competition both domestically and at EU level, reduce the negative impact of the threshold 
effect, and facilitate business co mpliance as well as monitoring by tax administrations.  
Moreover, the threshold of EUR 25 000 is consistent with Directive (EU) 2020/285, insofar as 
it allows Member States to set the annual turnover threshold required for an exemption from 
VAT at a level n o higher than EUR 85 000 (or the equivalent in national currency).  
Similar derogations, exempting from VAT taxable persons whose annual turnover is below a 
certain threshold, as provided for in Articles 285 and 287 of the VAT Directive, have been 
granted t o other Member States. The Nether lands7 has been granted a threshold of EUR 
25 000; It aly8 a threshold of EUR 30 000, Luxembourg9 a threshold of EUR 35 000; Poland10, 
                                                 
5 Council Directive (EU) 2020/285 of 18 February 2020 amending Directive 2006/112/EC on the 
common system of value added tax as regards the special scheme for small enterprises and  Regulation 
(EU) No 904/2010 as regards the administrative cooperation and exchange of information for the 
purpose of monitoring the correct application of the special scheme for small enterprises (OJ L 62, 
2.3.2020, p. 13).  
6 Communication from the Commis sion to the European Parliament, the Council and the European 
Economic and Social Committee on an action plan on VAT – Towards a single EU VAT area – Time to 
decide COM(2016)148 final.  
7 Council Implementing Decision (EU) 2018/1904 of 4 December 2018 autho rising the Netherlands to 
introduce a special measure derogating from Article 285 of Directive 2006/112/EC on the common 
system of value added tax (OJ L 310, 6.12.2018, p. 25).  
8 Council Implementing Decision (EU) 2016/1988 of 8 November 2016 amending Impl ementing 
Decision 2013/678/EU authorising the Italian Republic to continue to apply a special measure 
derogating from Article 285 of Directive 2006/112/EC on the common system of value added tax (OJ L 
306, 15.11.2016, p.  11). 
9 Council Implementing Decisio n (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 (OJ L 332, 23.12.2019, 
p. 155). 
EN 3  EN Latvia11 and Estonia12 have been granted a thr eshold of EUR 40 000;  Hungary13 a threshold of 
EUR 48 000;  Lithuania14 a threshol d of EUR 55 000; Croatia15 a threshold of EUR 45 000;  
Malta16 a threshold of EUR 30 000; Slovenia17 a thresh old of EUR 50 000; and Romania18 a 
threshold of EUR 88 500.  
Derogations from the VAT Directive should always be limited  in time so that their effects can 
be assessed. In addition, the inclusion of an expiry date of the special measure until 31 
December 2024, as requested by Belgium , is aligned with the requirements  of Directive (EU) 
2020/285 . That directive provides for 1 January 2025 as the date on which Member States 
will have to apply the national provisions, which they are required to adopt, to comply with it.  
The proposed measure is therefore consistent with the provisions of the VAT Directive.  
• Consistency with other  Union policies  
The Commission has been consistently stressing the need for simpler rules for small 
enterprises. In this respect, the Commission adopted in March 2020 an SME Strategy for a  
sustainable and digital Europe19, where it committed to continue to work to reduce the burden 
on SMEs. The objective to reduce the regulatory burden for SMEs is one of the pillars of that 
strategy. This special measure is in line with such objectives, as far as fiscal rules are 
concerned. It is also consistent with the 202 0 Action Plan on fair and simple taxation 
                                                                                                                                                         
10 Council Implementing Decision (EU) 2018/1919 of 4 December 2018 amending Decision 2009/790/EC 
authorising the Republic of Poland to apply a measure derogating from Article 287 of Directive 
2006/112/EC on the common system of value added tax (OJ L 311,  7.12.2018, p. 32).  
11 Council Implementing Decision (EU) 2020/1261 of 4 September 2020 amending Implementing 
Decision (EU) 2017/2408 authorising the Republic of Latvia to apply a special measure derogating 
from Article 287 of Directive 2006/112/EC on the common system of value added tax (OJ L 296, 
10.9.2020, p. 4).  
12 Council Implementing Decision (EU) 2021/358 of 22 February 2021 amending Implementing Decision 
(EU) 2017/563 authorising the Republic of Estonia to apply a special measure derogating from Arti cle 
287 of Directive 2006/112/EC on the common system of value added tax (OJ L 69, 26.2.2021, p. 4).  
13 Council Implementing Decision (EU) 2018/1490 of 2 October 2018 authorising Hungary to introduce a 
special measure derogating from Article 287 of Directiv e 2006/112/EC on the common system of value 
added tax (OJ L 252, 8.10.2018, p. 38).  
14 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 20 06/112/EC on the 
common system of value added tax (OJ L 30, 28.1.2021, p. 2).  
15 Council Implementing Decision (EU) 2020/1661 of 3 November 2020 amending Implementing 
Decision (EU) 2017/1768 authorising the Republic of Croatia to introduce a special measure  derogating 
from Article 287 of Directive 2006/112/EC on the common system of value added tax (OJ L 374, 
10.11.2020, p. 4).  
16 Council Implementing Decision (EU) 2021/753 of 6 May 2021 authorising Malta to apply a special 
measure derogating from Article 287  of Directive 2006/112/EC on the common system of value added 
tax, and repealing Implementing Decision (EU) 2018/279 (OJ L 163, 10.5.2021, p. 1).  
17 Council Implementing Decision (EU) 2018/1700 of 6 November 2018 amending Implementing 
Decision 2013/54/EU au thorising the Republic of Slovenia to introduce a special measure derogating 
from Article 287 of Directive 2006/112/EC on the common system of value added tax (OJ L 285, 
13.11.2018, p. 78).  
18 Council Implementing Decision (EU) 2020/1260 of 4 September 2020  amending Implementing 
Decision (EU) 2017/1855 authorising Romania to apply a special measure derogating from Article 287 
of Directive 2006/112/EC on the common system of value added tax (OJ L 296, 10.9.2020, p. 1).  
19 Communication from the Commission to t he European Parliament, the Council, the European 
Economic and Social Committee and the Committee of the Regions – An SME Strategy for a 
sustainable and digital Europe (COM(2020) 103 final).  
EN 4  EN supporting the recovery strategy20, which acknowledges that tax compliance costs remain 
high in the EU, and that compliance costs are typically substantially higher for small than for 
large companies.  
2. LEGAL  BASIS,  SUBSIDIARITY  AND  PROPORTIONALITY  
• Legal  basis  
Article 395 of the VAT Directive.  
• Subsidiarity  (for non-exclusive  competence)   
Considering the provision of the VAT Directive on which it is based, the proposal falls under 
the exclusive competence of  the European Union. Hence, the subsidiarity principle does not 
apply.  
• Proportionality  
The Decision concerns an authorisation granted to a Member State upon its own request and 
does not constitute any obligation.  
Given the limited scope of the derogation, the special measure is proportionate to the aim 
pursued, i.e. to simplify the tax collection for small taxable persons and for the tax 
administration.  
• Choice  of the instrument  
The instrument proposed is a Council Implementing Decision.  
Under Article 395 of the VAT Directive, a derogation from the common VAT rules is only 
possible upon authorisation by the Council, which is acting unanimously on a proposal from 
the Commission. A Council Implementing Decision is the most suitable instrument sinc e it 
can be addressed to an individual Member State.  
3. RESULTS  OF EX-POST  EVALUATIONS,  STAKEHOLDER  
CONSULTATIONS  AND  IMPACT  ASSESSMENTS  
• Stakeholder  consultations  
No stakeholder consultation has been conducted. The present proposal is based on a request 
made by Belgium  and concerns only this particular Member State.  
• Impact  assessment  
The proposal for a Council Implementing Decision aims at continuing for another t hree years 
a simplification measure which removes many of the VAT obligations for businesses 
operating with an annual turnover no higher than EUR 25 000 and therefore has a positive 
impact on the reduction of administrative burden for businesses and tax ad ministration 
without a major impact on the total VAT revenue. Because of the narrow scope of the 
derogation and its limited application in time, the impact of the measure will in any case be 
limited.  
                                                 
20 Communication from the Commission to the European Parliament an d the Council – An Action Plan 
for fair and simple taxation supporting the Recovery Strategy (COM(2020) 312 final).  
EN 5  EN The derogating measure will be optional for taxable pers ons. Taxable persons will be able to 
opt for the regular VAT arrangements in accordance with Article 290 of Directive 
2006/112/EC.  
 
• Fundamental  rights  
The proposal does not have any consequences for the protection of fundamental rights.  
4. BUDGETARY  IMPLICATIONS  
Following entering into force of Council Regulation (EU, Euratom) 2021/769 of 30 April 
2021 amending Regulation (EEC, Euratom) No 1553/89 on the definitive uniform 
arrangements for the collection of own resource s accruing from value added tax21, there will 
be no compensation calculation carried out by Belgium  as of VAT own resource statement for 
the financial year 2021 onwards.  
                                                 
21 Council Regulation (EU, Euratom) 2021/769 of 30 April 2021 amending Regulation (EEC, Euratom) 
No 1553/89 on the definitive uniform arrange ments for the collection of own resources accruing from 
value added tax (OJ L 165, 11.5.2021, p. 9).  
EN 6  EN 2021/0369 (NLE)  
Proposal for a  
COUNCIL IMPLEMENTING DECISION  
amending Implementing Decision 2013/53/EU as regards authorisation to the Kingdom 
of Belgium to apply for a further period the special measure derogating from Article 285 
of Directive 2006/112/EC  
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 tax1, and in particular Article 395(1)  thereof,  
Having regard to the proposal from the European Commission,  
Whereas:  
(1) By Council Implementing Decision 2013/53/EU2 the Kingdom of  Belgium was 
authorised  to introduce a special measure derogating from Article 285 of Directive 
2006/112/EC to exempt from value added tax ( VAT ) taxable persons whose annua l 
turnover is no higher than EUR 25 000  until 31 December 2015 (‘the special  
measure’) . That authorisation was extended initially  by Council Implementing 
Decision (EU) 2015/23483 until 31 December 2018  and subsequently  by Council 
Implementing Decision (EU)  2018/20774 until 31 December 2021 . 
(2) By letter of 5 May 2021, Belgium submitted a request  to the Commission  for an 
authorisation  to continue to apply the  special measure until 31 December 2024, the 
date by which Member States are to transpose Council Directive (EU) 2020/2855 
which lays down simpler VAT rules for small enterprises. That Directive also allows 
Member States to exempt taxable persons whose Member State annual turnover does 
not e xceed a threshold of EUR 85 000 . 
                                                 
1 OJ L 347, 11.12.2006, p.  1. 
2 Council Implementing Decision 2013/53/EU of 22 January 2013 authorising the Kingdom of Belgium 
to introduce a special measu re derogating from Article 285 of Directive 2006/112/EC on the common 
system of value added tax (OJ L 22, 25.1.2013, p. 13 ). 
3 Council Implementing Decision (EU) 2015/2348 of 10 December 2015 amending Implementing 
Decision 2013/53/EU authorising the Kingdom of Belgium to introduce a special measure derogating 
from Article 285 of Directiv e 2006/112/EC on the common sys tem of value added tax (OJ L 330, 
16.12.2015, p. 51). 
4 Council  Implementing Decision (EU) 2018 /2077 of 20 December 2018  amending Implem enting 
Decision 2013/53/EU authorising the Kingdom of Belgium to introduce a special measure derogating 
from Article 285 of Directiv e 2006/112/EC on the common sys tem of value  added ta x (OJ L 331, 
28.12.2018, p. 222 ). 
5 Council Directive (EU) 2020/285 of 1 8 February 2020 amending Directive 2006/112/EC on the 
common system of value added tax as regards the special scheme for small enterprises and Regulation 
(EU) No 904/2010 as regards the administrative cooperation and exchange of information for the 
purpose  of monitoring the correct application of the special scheme for small enterprises (OJ L 62, 
2.3.2020, p. 13).  
EN 7  EN (3) Pursuant to  Article 395(2 ), second subparagraph,  of Directive 2006/112/EC, the 
Commission transmitted the request made by Belgium to the other Member States, by 
letter dated 29 June 2021. By letter date d 30 June 2021, the Commission notified 
Belgium that it had all the information  necessary for the appraisal  of the request.  
(4) The special  measure is in line with Directive (EU) 2020/285, which seeks to reduce 
VAT compliance costs for small enterprises, distortions of competition at both 
national and Union level, and the negative im pact of transition from exemption to 
taxation (the threshold effect). It also seeks to facilitate compliance by small 
enterprises as well as monitoring by tax authorities. The threshold of EUR 25 000 is 
consistent with Article 284 of Directive 2006/112/EC.  
(5) The special measure will remain optional for taxable persons . Taxable persons may 
still opt for the normal VAT arrangements pursuant to Article 290 of Directive 
2006/112/EC.  
(6) According to  information provided by Belgium, the special measure wil l only have a 
negligible effect on the overall amount of the tax revenue Belgium collect s at the stage 
of final consumption.  
(7) Following the entry into force of Council Regulation (EU, Euratom) 2021/7696, there 
will be no compensation calculation  carried out by Belgium  with regard to the  VAT 
own resource statement for the financial year 2021  onwards.  
(8) Given the positive impact  of the special measure  in reduc ing the administrative burden 
and compliance costs for both small enterprises and tax au thorities, and the lack of  any 
major impact on the total VAT revenue generated, Belgium should be authorised to 
apply the special measure  for a further period . 
(9) The authorisation to apply the special  measure should be limited in time. The time 
limit sho uld be sufficient to allow the effectiveness and appropriateness of the 
threshold to be evaluated. Moreover, pursuant to Article 3(1) of Directive (EU) 
2020/285, Member States are to adopt and publish, by 31 December 2024, the laws, 
regulations and adminis trative provisions necessary to comply with Article 1 of that 
Directive, and apply those provisions from 1 January 2025. It is therefore appropriate 
to authorise Belgium  to apply the special  measure until 31 December 2024 . 
(10) Implementing Decision 2013/53/EU should therefore be amended accordingly,  
HAS ADOPTED THIS DECISION:  
Article 1  
Article 2 of Implementing Decision 2013/53/EU is replaced by the following:  
‘Article 2  
This Decision shall apply from 1 January 2013  until 31 December 2024.’  
                                                 
6 Council Regulation (EU, Euratom) 2021/769 of 30 April 2021 amending Regulation (EEC, Euratom) 
No 1553/89 on the definitive uniform arrangements  for the collection of own resources accruing from 
value added tax (OJ L 165, 11.5.2021, p. 9).  
EN 8  EN Article 2 
This Decision is addressed to the Kingdom of Belgium . 
Done at Brussels,  
 For the Council  
 The President