1999/81/EC: 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
Date: 1999-01-18
Institutions: Council of the European Union
Subjects: Spain, VAT, approximation of laws, derogation from EU law, tax harmonisation, waste

L 27/26

EN

Official Journal of the European Communities

2. 2. 1999

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 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,

Whereas, pursuant
to Article 27(1) of Directive 77/
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 with the Commission on 23
January 1998, the Kingdom of Spain requested author-
isation 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
submitted by the
18 February 1998 of
Kingdom of Spain;

the request

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 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;

Whereas the third purpose of the measure is to exempt
the supply and intra-Community acquisition of non-

ferrous metals, irrespective of the turnover for sales of
such goods;

Whereas traders are not entitled to deduct VAT 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 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
work programme,
the
phased introduction of a common system of VAT for the
single market;

together with a timetable,

for

Whereas
authorisation should be granted until 31
December 2000 so that an assessment can then be made
of
the measure with the overall
approach adopted for the new common system of VAT;

the compatibility of

Whereas this derogation will have no impact on the Euro-
pean Communities’ own resources accruing from VAT,

HAS ADOPTED THIS DECISION:

Article 1

The Kingdom of Spain is hereby authorised from 1
January 1999 until 31 December 2000 to apply a special
measure for the taxation of used and waste materials that
contains provisions derogating
from Directive 77/
388/EEC of 17 May 1977.

(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).

The provisions in question are laid down in Articles 2, 3
and 4 below.

2. 2. 1999

EN

Official Journal of the European Communities

L 27/27

Article 2

By way of derogation from Article 2(1) of Directive 77/
388/EEC, the following shall be exempt from VAT:
— 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.

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 3

Article 5

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 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 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

This Decision is addressed to the Kingdom of Spain.

Done at Brussels, 18 January 1999.

For the Council

The President

O. LAFONTAINE