2002/736/EC: Council Decision of 12 July 2002 authorising the Hellenic Republic to apply a measure derogating from Articles 2 and 28a of the Sixth Directive 77/388/EEC on the harmonisation of the laws of the Member States relating to turnover taxes
Date: 2002-07-12
Institutions: Council of the European Union
Subjects: Greece, VAT, approximation of laws, derogation from EU law, tax exemption, tax harmonisation, waste, waste recycling

L 233/36

EN

Official Journal of the European Communities

30.8.2002

II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 12 July 2002

authorising the Hellenic Republic to apply a measure derogating from Articles 2 and 28a of the
Sixth Directive 77/388/EEC on the harmonisation of the laws of the Member States relating to
turnover taxes

(2002/736/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 of assessment (1), and in particular
Article 27(1) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

(4)

By letter registered with the Secretariat-General of the
Commission on 15 November 2001, the Greek Govern-
ment
tax
requested authorisation to apply special
measures to the recyclable waste sector.

The other Member States were informed of that request
on 22 November 2001.

The derogation in question is to exempt the supplies and
intra-Community acquisitions of recyclable waste, such
as scrap iron, waste of iron and steel, glass, paper and
board, by taxable persons whose sales of such products
in
than
EUR 900 000. In addition, it is intended to exempt the
supplies and intra-Community acquisitions of non-
ferrous metal waste, regardless of the trader’s gross turn-
over.

amounted

previous

year

less

the

to

Taxable persons whose transactions are covered by the
exemptions set out in the special tax measures may,
to the conditions laid down by the Hellenic
subject
Republic, be authorised not to apply the exemptions to
their transactions.

(1) OJ L 145, 13.6.1977, p. 1. Directive as last amended by Directive

2001/4/EC (OJ L 22, 24.1.2001, p. 17).

(5)

(6)

(7)

(8)

These special tax measures constitute an effective fraud-
prevention measure in a sector in which collecting VAT
is rendered particularly awkward by the difficulty of
identifying and supervising activities.

These special tax measures therefore satisfy the condi-
tions laid down in Article 27 of Directive 77/388/EEC.

In its communication of 7 June 2000 to the European
Parliament and the Council, the Commission published a
strategy to improve the operation of the VAT system in
the short term including a rationalisation of the large
number of derogations currently in force. In some cases,
however,
this rationalisation could involve extending
particularly effective derogations to all Member States.

It therefore seems advisable to grant the derogation until
31 December 2003, thereby permitting an assessment of
its compatibility with the overall approach to the system
of VAT, and in particular the rationalisation of deroga-
tions.

(9)

The derogation has no adverse impact on the European
Communities’ own resources accruing from VAT,

HAS ADOPTED THIS DECISION:

Article 1

By way of derogation from Directive 77/388/EEC, the Hellenic
Republic is hereby authorised to apply until 31 December
2003 special measures for the taxation of recyclable waste
(hereafter called ‘the special regime’).

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Official Journal of the European Communities

L 233/37

Article 2

Article 5

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

(a) supplies of recyclable waste, such as scrap iron, waste of
iron and steel, glass, paper and board, by traders with a
turnover of less than EUR 900 000;

(b) supplies of non-ferrous metals.

The Hellenic Republic shall allow those taxable persons who so
request it, not to apply the special regime to their supplies and
intra-Community acquisitions, under such conditions as it may
see fit to ensure that the VAT obligations of the taxable person
are properly met.

Article 3

Article 6

By way of derogation from Article 28a(1)(a) of Directive 77/
388/EEC, the following shall be exempt from VAT:

(a) intra-Community acquisitions of recyclable waste, such as
scrap iron, waste of iron and steel, glass, paper and board,
by traders with a turnover of less than EUR 900 000;

(b) intra-Community acquisitions of non-ferrous metals.

Article 4

In order to calculate the ceiling of EUR 900 000 under Articles
2 and 3, the turnover for non-ferrous metals may be disre-
garded.

This Decision is addressed to the Hellenic Republic.

Done at Brussels, 12 July 2002.

For the Council

The President

T. PEDERSEN