2003/354/EC: Council Decision of 13 May 2003 authorising Germany to apply a measure derogating from Article 17 of the Sixth Directive 77/388/EEC on the harmonisation of the laws of the Member States relating to turnover taxes
Date: 2003-05-13
Institutions: Council of the European Union
Subjects: Germany, VAT, approximation of laws, derogation from EU law, tax harmonisation

17.5.2003

EN

Official Journal of the European Union

L 123/47

II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 13 May 2003

authorising Germany to apply a measure derogating from Article 17 of the Sixth Directive 77/388/
EEC on the harmonisation of the laws of the Member States relating to turnover taxes

(2003/354/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/CEE 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 by the Commission (2),

Whereas:

(1)

(2)

(3)

In a letter registered by the Commission's Secretariat-
General on 17 December 2002 the German authorities
requested authorisation to continue to apply a deroga-
tion which had been granted by Article 1 of Council
Decision 2000/186/EC (3).

The other Member States were informed of the request
on 17 January 2003.

The derogating measure is intended to exclude expendi-
ture on goods and services completely from the right to
deduct VAT when the goods and services are used more
than 90 % for the private purposes of the taxable person,
or of his employees, or for non-business purposes in
general. This measure is a derogation from Article 17 of
Directive 77/388/EEC, as amended by Article 28f of that
Directive and is justified by the need to simplify the
procedure for charging VAT; it affects the amount of tax
due at the final consumption stage only to a negligible
extent.

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

2002/93/EC (OJ L 331, 7.12.2002, p. 27).

(2) Proposal of 18 May 2003 (not yet published in the Official Journal).
(3) OJ L 59, 4.3.2000, p. 12.

(4)

(5)

The authorisation expired on 31 December 2002,
although the legal situation and the facts which justified
application of the simplification measure in question
have not changed and continue to exist.

The duration of the new authorisation should however
be limited to 30 June 2004. This maximum period will
allow the derogation to be evaluated in the light of the
ruling on Case C-17/01, which the Court will probably
deliver in the course of 2003.

(6)

The derogation will not adversely affect the Commu-
nities' own resources from VAT,

HAS ADOPTED THIS DECISION:

Article 1

By way of derogation from Article 17(2) of Directive 77/388/
EEC Germany is authorised to exclude expenditure on goods
and services from the right to deduct VAT when the goods and
services in question are used more than 90 % for the private
purposes of a taxable person or of his employees, or, more
generally, for non-business purposes.

Article 2

This Decision shall apply until 30 June 2004.

L 123/48

EN

Official Journal of the European Union

17.5.2003

This Decision is addressed to the Federal Republic of Germany.

Article 3

Done at Brussels, 13 May 2003.

For the Council

The President

M. CHRISOCHOÏDIS