2006/774/EC: Council Decision of 7 November 2006 authorising certain Member States to apply a reduced rate of VAT to certain labour-intensive services in accordance with the procedure provided for in Article 28(6) of Directive 77/388/EEC
Date: 2006-11-07
Institutions: Council of the European Union
Subjects: EU Member State, EU employment policy, VAT rate, job creation, labour force, service industry, tax relief

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Official Journal of the European Union

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II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 7 November 2006

authorising certain Member States to apply a reduced rate of VAT to certain labour-intensive
services in accordance with the procedure provided for in Article 28(6) of Directive 77/388/EEC

(2006/774/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community,

establishing the European

Having regard to 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), (hereinafter referred
to as ‘the Directive’), and in particular Article 28(6) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

The Council, acting unanimously on a proposal from the
Commission, may authorise any Member State that has
submitted an application in accordance with the
procedure and conditions provided for by Directive
77/388/EEC to apply a reduced rate of VAT to certain
labour-intensive services.

services

The
conditions
concerned must meet
provided for in the Directive and be included in Annex
K thereto.

the

Under Council Decision 2000/185/EC of 28 February
2000 authorising Member States to apply a reduced
rate of VAT to certain labour
intensive services in
accordance with the procedure provided for in Article

Italy, Luxembourg,

28(6) of Directive 77/388/EEC (2), Belgium, Spain,
France,
the Netherlands, Portugal
and the United Kingdom (for the Isle of Man only)
could apply, until 31 December 2005, a reduced rate
of VAT to the labour-intensive services for which they
had submitted a request to this effect.

Council Directive 2006/18/EC (3) amends the Directive
with regard to reduced rates of value added tax,
in
order, on the one hand,
to extend their application
until 31 December 2010, and on the other hand, to
allow those Member States that so wish, to avail them-
selves for the first time of the possibility provided for
therein, and permit those Member States that wish to
amend the list of services to which they have applied
the measures provided for by the Directive in the past,
to submit an application for a reduction of the rates to
the Commission.

In order to allow those Member States authorised by
Decision 2000/185/EC to apply a reduced rate to
continue to do so until 31 December 2010, and in the
interests of legal clarity, the provisions of that Decision
should be included in this Decision for those Member
States that have not amended their initial application.

In accordance with the Directive, Greece, which was
already authorised by Decision 2000/185/EC to apply a
reduced rate for two of the categories listed in Annex K,
has submitted a new application extending the scope of
its previous authorisation. Greece should therefore be
awarded a new authorisation permitting the application
of a reduced rate, in accordance with its new application.

(4)

(5)

(6)

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

2004/161/EC (OJ L 52, 21.2.2004, p. 62).

2006/69/EC (OJ L 221, 12.8.2006, p. 9).

(3) OJ L 51, 22.2.2006, p. 12.

(2) OJ L 59, 4.3.2000, p. 10. Decision as last amended by Decision

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(7)

(8)

(9)

The Czech Republic, Cyprus, Latvia, Hungary, Malta,
Poland, Slovenia and Finland have submitted applications
to apply a reduced rate of VAT to certain labour-
intensive services in accordance with the procedure and
conditions provided for in the Directive.

Furthermore, the Czech Republic, Hungary, Poland and
Greece have submitted applications for authorisation to
apply, as an exceptional measure, a reduced rate to three
categories of the services listed in Annex K. For each of
these four Member States, the reduction in rate in the
third of the categories selected can have only an insig-
nificant economic impact.

In order that the Member States concerned may continue
to apply reduced rates to certain labour-intensive services,
as provided for in Decision 2000/185/EC, this Decision
should apply from 1 January 2006.

(10)

This Decision will have no impact on the Communities'
own resources derived from VAT,

HAS ADOPTED THIS DECISION:

Article 1

In accordance with the first subparagraph of Article 28(6) of
Directive 77/388/EEC, Belgium is authorised to apply a reduced
rate during the period 1 January 2006 to 31 December 2010 to
the following two services referred to in points 1 and 2 of
Annex K to that Directive:

(a) Small services of repairing:

— bicycles,

— shoes and leather goods,

— clothing and household linen (including mending and

alteration);

(b) renovation and repairing of private dwellings more than five
years old, excluding materials which form a significant part
of the value of the supply.

December 2010 to the following three services referred to in
points 2, 3 and 4 of Annex K to that Directive:

(a) renovation and repairing of private dwellings, excluding
materials which form a significant part of the value of the
supply;

(b) window cleaning and cleaning in private households;

(c) domestic care services,

(e.g. home help and care of the

young, elderly, sick or disabled).

Article 3

In accordance with the first and fourth subparagraphs of Article
28(6) of Directive 77/388/EEC, Greece is authorised to apply a
reduced rate during the period 1 January 2006 to 31 December
2010 to the following three services referred to in points 1, 2
and 4 of Annex K to that Directive:

(a) small services of repairing:

— bicycles,

— shoes and leather goods,

— clothing and household linen (including mending and

alteration);

(b) renovation and repairing of old private dwellings (not
constructed recently), excluding materials which form a
significant part of the value of the supply;

(c) domestic care services,

(e.g. home help and care of the

young, elderly, sick or disabled).

Article 4

In accordance with the first subparagraph of Article 28(6) of
Directive 77/388/EEC, Spain is authorised to apply a reduced
rate during the period 1 January 2006 to 31 December 2010 to
the following two services referred to in points 2 and 5 of
Annex K to that Directive:

Article 2

(a) bricklaying for the repair of private dwellings, excluding
materials which form a significant part of the value of the
supply;

In accordance with the first and fourth subparagraphs of Article
28(6) of Directive 77/388/EEC, the Czech Republic is authorised
to apply a reduced rate during the period 1 January 2006 to 31

(b) hairdressing.

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Article 5

In accordance with the first subparagraph of Article 28(6) of
Directive 77/388/EEC, France is authorised to apply a reduced
rate during the period 1 January 2006 to 31 December 2010 to
the following three services referred to in points 2, 3 and 4 of
Annex K to that Directive:

(a) renovation and repairing of private dwellings completed
more than two years ago, excluding materials which form
a significant part of the value of the supply;

(b) domestic care services (e.g. home help and care of

the

young, elderly, sick or disabled);

(c) window cleaning and cleaning in private households.

Article 6

In accordance with the first subparagraph of Article 28(6) of
Directive 77/388/EEC, Italy is authorised to apply a reduced rate
during the period 1 January 2006 to 31 December 2010 to the
following two services referred to in points 2 and 4 of Annex K
to that Directive:

(a) renovation and repairing of private dwellings, excluding
materials which form a significant part of the value of the
supply;

(a) renovation and repairing of private dwellings, excluding
materials which form a significant part of the value of the
supply;

(b) hairdressing.

Article 9

In accordance with the first subparagraph of Article 28(6) of
Directive 77/388/EEC, Luxembourg is authorised to apply a
reduced rate during the period 1 January 2006 to 31
December 2010 to the following three services referred to in
points 1, 3 and 5 of Annex K to that Directive:

(a) small services of repairing:

— bicycles,

— shoes and leather goods,

— clothing and household linen (including mending and

alteration);

(b) hairdressing;

(c) window cleaning and cleaning in private households.

(b) domestic care services (e.g. home help and care of

the

young, elderly, sick or disabled).

Article 10

Article 7

In accordance with the first and fourth subparagraphs of Article
28(6) of Directive 77/388/EEC, Cyprus is authorised to apply a
reduced rate during the period 1 January 2006 to 31 December
2010 to the following two services referred to in points 2 and 5
of Annex K to that Directive:

(a) renovation and repairing of private dwellings, excluding
materials which form a significant part of the value of the
supply;

(b) hairdressing.

In accordance with the first and fourth subparagraphs of Article
28(6) of Directive 77/388/EEC, Hungary is authorised to apply
a reduced rate during the period 1 January 2006 to 31
December 2010 to the following three services referred to in
points 1, 2 and 4 of Annex K to that Directive:

(a) small services of repairing:

— bicycles,

— shoes and leather goods,

— clothing and household linen (including mending and

alteration);

Article 8

In accordance with the first and fourth subparagraphs of Article
28(6) of Directive 77/388/EEC, Latvia is authorised to apply a
reduced rate during the period 1 January 2006 to 31 December
2010 to the following two services referred to in points 2 and 5
of Annex K to that Directive:

(b) renovation and repairing of private dwellings, excluding
materials which form a significant part of the value of the
supply;

(c) domestic care services (e.g. home help and care of

the

young, elderly, sick or disabled).

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Article 11

— bicycles,

In accordance with the first and fourth subparagraphs of Article
28(6) of Directive 77/388/EEC, Malta is authorised to apply a
reduced rate during the period 1 January 2006 to 31 December
2010 to the following two services referred to in points 1 and 4
of Annex K to that Directive:

— shoes and leather goods,

— clothing and household linen (including mending and

alteration);

(a) small services of repairing:

— bicycles,

— shoes and leather goods,

(b) renovation and repairing of private dwellings, excluding
materials which form a significant part of the value of the
supply;

(c) hairdressing.

— clothing and household linen (including mending and

Article 14

alteration);

(b) domestic care services (e.g. home help and care of

the

young, elderly, sick or disabled).

In accordance with the first subparagraph of Article 28(6) of
Directive 77/388/EEC, Portugal is authorised to apply a reduced
rate during the period 1 January 2006 to 31 December 2010 to
the following two services referred to in points 2 and 4 of
Annex K to that Directive:

Article 12

In accordance with the first subparagraph of Article 28(6) of
Directive 77/388/EEC, the Netherlands is authorised to apply a
reduced rate during the period 1 January 2006 to 31 December
2010 to the following three services referred to in points 1, 2
and 5 of Annex K to that Directive:

(a) renovation and repairing of private dwellings, excluding
materials which form a significant part of the value of the
supply;

(b) domestic care services (e.g. home help and care of

the

young, elderly, sick or disabled).

(a) small services of repairing:

— bicycles,

— shoes and leather goods,

— clothing and household linen (including mending and

alteration);

(b) hairdressing;

(c) painting and plastering services for the renovation and
repairing of private dwellings more than 15 years old,
excluding materials which form a significant part of the
value of the supply.

Article 15

In accordance with the first and fourth subparagraphs of Article
28(6) of Directive 77/388/EEC, Slovenia is authorised to apply a
reduced rate during the period 1 January 2006 to 31 December
2010 for
renovation and repairing of private dwellings,
excluding materials which form a significant part of the value
of
the supply, referred to in point 2 of Annex K to that
Directive.

Article 16

In accordance with the first and fourth subparagraphs of Article
28(6) of Directive 77/388/EEC, Finland is authorised to apply a
reduced rate during the period 1 January 2006 to 31 December
2010 to the following two services referred to in points 1 and 5
of Annex K to that Directive:

(a) small services of repairing:

Article 13

— bicycles,

In accordance with the first and fourth subparagraphs of Article
28(6) of Directive 77/388/EEC, Poland is authorised to apply a
reduced rate during the period 1 January 2006 to 31 December
2010 to the following three services referred to in points 1, 2
and 5 of Annex K to that Directive:

— shoes and leather goods,

— clothing and household linen (including mending and

alteration);

(a) small services of repairing:

(b) hairdressing.

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Article 17

In accordance with the first subparagraph of Article 28(6) of
Directive 77/388/EEC,
the United Kingdom is authorised to
apply a reduced rate during the period 1 January 2006 to 31
renovation and repairing of private
December 2010 for
dwellings, excluding materials which form a significant part of
the value of the supply referred to in point 2 of Annex K to
that Directive, but for the Isle of Man only.

Article 18

This Decision shall apply from 1 January 2006 until 31
December 2010.

Article 19

This Decision is addressed to the Kingdom of Belgium, the
Czech Republic, the Hellenic Republic, the Kingdom of Spain,

the Republic of

the Italian Republic,
Latvia,

the Republic of
the French Republic,
Cyprus,
the Grand Duchy of
Luxembourg, the Republic of Hungary, the Republic of Malta,
the Kingdom of the Netherlands, the Republic of Poland, the
Portuguese Republic, the Republic of Slovenia, the Republic of
Finland and the United Kingdom of Great Britain and Northern
Ireland.

Done at Brussels, 7 November 2006.

For the Council
The President

E. HEINÄLUOMA