2007/50/EC: Council Decision of 30 January 2007 authorising Romania to apply a reduced rate of VAT to certain labour-intensive services referred to in Article 106 of Directive 2006/112/EC
Date: 2007-01-30
Institutions: Council of the European Union
Subjects: Romania, VAT rate, clothing industry, home care, labour force, service industry, tax relief

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Official Journal of the European Union

31.1.2007

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory)

II

DECISIONS

COUNCIL

COUNCIL DECISION

of 30 January 2007

authorising Romania to apply a reduced rate of VAT to certain labour-intensive services referred to
in Article 106 of Directive 2006/112/EC

(2007/50/EC)

THE COUNCIL OF THE EUROPEAN UNION,

which they have applied the said provision in the past, to
submit their request to the Commission.

Having regard to the Treaty
Community,

establishing the European

Having regard to the 2005 Treaty of Accession (1), and in
particular Article 4(3) thereof,

Having regard to the 2005 Act of Accession (2), and in
particular Article 55 thereof,

Having regard to Council Directive 2006/112/EC of 28
November 2006 on the common system of value added
tax (3), and in particular Article 106 thereof,

Having regard to the proposal from the Commission,

(3)

(4)

(5)

Whereas:

(1)

(2)

The Council may authorise Member States to apply a
reduced rate of VAT to certain labour-intensive services,
which must meet the conditions provided for in Directive
2006/112/EC and be included in the list given in Annex
IV thereto.

Directive No 2006/112/EC extended the period of appli-
cation of the reduced rates of VAT until 31 December
2010. It enables Member States, both those wishing to
avail themselves for the first time of the facility provided
for, and those wishing to change the list of services to

(1) OJ L 157, 21.6.2005, p. 11.
(2) OJ L 157, 21.6.2005, p. 203.
(3) OJ L 347, 11.12.2006, p. 1. Directive as amended by Directive No

2006/138/EC (OJ L 384, 29.12.2006, p. 92).

This is intended to make it possible for all Member States
to take part under the same conditions in the trial of
reduced rates for labour-intensive services. It is therefore
from their
appropriate to grant
accession to the European Union, the same possibility
of applying a reduced rate of VAT to certain labour-
intensive services.

the acceding States,

By letter dated 31 March 2006, Romania submitted a
request
to apply a reduced rate of VAT to certain
labour-intensive services covered by the said trial.

To ensure equality among the Member States,
this
Decision should apply from the date of entry into
force of
the Treaty of Accession of Bulgaria and
Romania.

(6)

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

HAS ADOPTED THIS DECISION:

Article 1

Under Article 55 of
the 2005 Act of Accession, read in
conjunction with Articles 106 and 108 of Directive
2006/112/EC, Romania is authorised to apply, from the entry
into force of the 2005 Treaty of Accession until 31 December
2010,
the reduced rates provided for in Article 98 to the
following services, referred to in points 1 and 4 of Annex IV
to Directive 2006/112/EC:

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(a) minor services of repairing clothing and household linen

Article 3

(including mending and alteration);

(b) domestic care services.

Article 2

This Decision is addressed to Romania.

Done at Brussels, 30 January 2007.

This Decision shall apply from the date of entry into force of
the 2005 Treaty of Accession, and shall cease to have effect on
31 December 2010.

For the Council
The President

P. STEINBRÜCK