2003/65/EC: Council Decision of 21 January 2003 extending the application of Decision 2000/91/EC authorising the Kingdom of Denmark and the Kingdom of Sweden to apply a measure derogating from Article 17 of the Sixth Council Directive 77/388/EEC on the harmonisation of the laws of the Member States relating to turnover taxes
Date: 2003-01-21
Institutions: Council of the European Union
Subjects: Denmark, Sweden, VAT, derogation from EU law, tax harmonisation

L 25/40

EN

Official Journal of the European Communities

30.1.2003

II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 21 January 2003

extending the application of Decision 2000/91/EC authorising the Kingdom of Denmark and the
Kingdom of Sweden to apply a measure derogating from Article 17 of the Sixth Council Directive
77/388/EEC on the harmonisation of the laws of the Member States relating to turnover taxes

(2003/65/EC)

THE COUNCIL OF THE EUROPEAN UNION,

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 letters registered with the Commission's Secretariat-
General on 25 July 2002 and 28 October 2002 respec-
tively,
the Danish and Swedish authorities requested
authorisation to extend the application of the derogation
granted to them by Council Decision 2000/91/EC (2).

The other Member States were informed of this applica-
tion on 6 November 2002.

These applications relate to the VAT arrangements in
connection with the operation of the Öresund fixed link
between Denmark and Sweden, and in particular to the
recovery of VAT paid on tolls for the use of the link.
Under the rules of territoriality, part of the VAT on tolls
is payable to Denmark and part to Sweden.

By way of derogation from the provisions of Article 17
of Directive 77/388/EEC, as amended by Article 28f of
that Directive, requiring taxable persons to exercise their
to deduct or obtain a refund of VAT in the
right
Member State where it was paid,
the Swedish and
Danish authorities were authorised to introduce a special
measure enabling taxpayers to recover VAT from a
single administration.

(5)

(6)

(7)

This authorisation expires on 31 December 2002. Since
the legal situation and the facts which justified applica-
tion of the simplification measure in the first place have
not changed a Decision should be taken which will
apply from 1 January 2003 and which extends the said
authorisation.

On 17 June 1998 the Commission presented a proposal
for a Council Directive amending the sixth Directive as
regards the rules governing the right to deduct value
added tax (3), adoption of which would render the special
measures unnecessary in all cases where taxable persons
established in the Community are involved, which is in
fact the majority of cases.

The extension of the authorisation should therefore be
granted for a limited period and remain valid up to the
the said Directive, or up to 31
entry into force of
December 2006 at the latest if that Directive has not yet
entered into force by then.

(8)

The derogation does not aversely affect the Commu-
nities' own resources from VAT,

HAS ADOPTED THIS DECISION:

Article 1

In Article 2 of Decision 2000/91/EC, the date ‘31 December
2002’ shall be replaced by ‘31 December 2006’.

Article 2

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

2002/38/EC (OJ L 128, 15.5.2002, p. 41).

(2) OJ L 28, 3.2.2000, p. 38.

This Decision shall apply from 1 January 2003.

(3) OJ C 219, 15.7.1998, p. 16.

30.1.2003

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Official Journal of the European Communities

L 25/41

This Decision is addressed to the Kingdom of Denmark and the Kingdom of Sweden.

Article 3

Done at Brussels, 21 January 2003.

For the Council

The President

N. CHRISTODOULAKIS