98/161/EC: Council Decision of 16 February 1998 authorising the Kingdom of the Netherlands to apply a measure derogating from Articles 2 and 28a(1) of the Sixth Council Directive 77/388/EEC on the harmonisation of the laws of the Member States relating to turnover taxes
Date: 1998-02-16
Institutions: Council of the European Union
Subjects: Netherlands, VAT, approximation of laws, metal waste, tax harmonisation, waste recycling

24. 2. 98

EN

Official Journal of the European Communities

L 53/19

COUNCIL DECISION

of 16 February 1998

authorising the Kingdom of the Netherlands to apply a measure derogating
from Articles 2 and 28a(1) of the Sixth Council Directive 77/388/EEC on the
harmonisation of the laws of the Member States relating to turnover taxes

(98/161/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 turnover taxes:
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,

to Article 27(1) of Directive 77/
Whereas, pursuant
388/EEC, the Council, acting unanimously on a proposal
from the Commission, may authorise any Member 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 at the Commission on 9
June 1997, the Kingdom of the Netherlands 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
10 September 1997 of
the request submitted by the
Kingdom of the Netherlands;

Whereas that special measure provides, firstly, for exemp-
tion of the supply and intra-Community acquisition of
used and waste materials, with the exception of non-
ferrous metals, in the case of taxable entities with an
less than NLG 2,5 million and,
annual
secondly,
the supply and intra-
Community acquisition of non-ferrous metals;

for exemption of

turnover of

Whereas
the taxable persons whose transactions are
covered by the above exemptions may, subject to the
conditions laid down by the Kingdom of the Nether-
lands, be authorised not to apply that measure to their
transactions;

(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).

Whereas the measure both simplifies matters and helps
to combat fraud since a category of taxable persons where
checks and efforts at collection would be disproportionate
to the revenue generated can be excluded from the VAT
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
the
work programme,
phased introduction of a common system of VAT for the
internal market;

together with a timetable,

for

authorisation is being

31
Whereas
December 1999 so that an assessment can then be made
of the compatibility of the derogation measure with the
overall approach adopted for the new common system of
VAT;

granted until

Whereas this derogation will not have an adverse impact
on the Community’s own resources accruing from VAT,

HAS ADOPTED THIS DECISION:

Article 1

The Kingdom of the Netherlands is hereby authorised
until 31 December 1999 to apply a special measure for
the taxation of used and waste materials that contains
provisions derogating from Directive 77/388/EEC.

The provisions in question are laid down in Articles 2, 3
and 4 of this Decision.

Article 2

By way of derogation from Article 2 of Directive 77/
388/EEC, the following shall be exempt from VAT:

— the supply of used and waste materials by firms with
an annual turnover of less than NGL 2,5 million. For
the purposes of
turnover in non-
ferrous metals may be disregarded,

threshold,

that

— the supply of non-ferrous metals.

L 53/20

EN

Official Journal of the European Communities

24. 2. 98

Article 3

By way of derogation from Article 28a(1)(a) of Directive
77/388/EEC, the following shall be exempt from VAT:
— the intra-Community acquisition of used and waste
materials by firms with an annual turnover of less
than NGL 2,5 million. For the purposes of
that
threshold,
turnover in non-ferrous metals may be
disregarded,

— the

intra-Community

acquisition of non-ferrous

metals.

Article 4

transactions which are
Taxable entities carrying out
exempt pursuant
to Articles 2 and 3 above may be
authorised not to make supplies and intra-Community

acquisitions of used and waste materials effected by them
subject
to the special measure provided for by this
Decision.

Article 5

This Decision is addressed to the Kingdom of the Neth-
erlands.

Done at Brussels, 16 February 1998.

For the Council

The President

G. BROWN