Council Regulation (EC) No 143/2008 of 12 February 2008 amending Regulation (EC) No 1798/2003 as regards the introduction of administrative cooperation and the exchange of information concerning the rules relating to the place of supply of services, the special schemes and the refund procedure for value added tax
Date: 2008-02-12
Institutions: Council of the European Union
Subjects: VAT, administrative cooperation, exchange of information, provision of services

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(Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory)

I

REGULATIONS

COUNCIL REGULATION (EC) No 143/2008

of 12 February 2008

amending Regulation (EC) No 1798/2003 as regards the introduction of administrative cooperation
and the exchange of information concerning the rules relating to the place of supply of services, the
special schemes and the refund procedure for value added tax

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community, and in particular Article 93 thereof,

establishing the European

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (1),

Having regard to the opinion of the European Economic and
Social Committee (2),

Whereas:

(1)

The amendments introduced with regard to the place of
supply of services by Council Directive 2008/8/EC of
12 February 2008 amending Directive 2006/112/EC as
regards the place of supply of services (3) mean that
services
to taxable persons are supplied principally
where the recipient is established. Where the supplier
and the recipient of
the services are established in
different Member States, the reverse charge mechanism
will be applicable more frequently than hitherto.

(3)

(4)

(5)

State where

charge mechanism, the data collected by the Member
State of the supplier should be communicated to the
Member
established.
the
Council Regulation (EC) No 1798/2003 of 7 October
2003 on administrative cooperation in the field of
value added tax (4) should provide for such communi-
cation.

recipient

is

Directive 2008/8/EC also extends the scope of the special
scheme
supplied by taxable
services
persons not established within the Community.

electronic

for

in Directive 2006/112/EC,

Council Directive 2008/9/EC of 12 February 2008 laying
down detailed rules for the refund of value added tax,
provided for
to taxable
persons not established in the Member State of refund
but in another Member State (5) simplifies the refund
procedure for VAT in a Member State in which the
identified for VAT
taxable person concerned is not
purposes.

The extension of the scope of the special scheme and the
amendments to the refund procedure for taxable persons
not established in the Member State of refund mean that
the Member States concerned will need to exchange
considerably more information. The required exchange
of information should not make any excessive adminis-
trative demands on the Member State concerned. This
exchange of information should thus take place electro-
nically under existing systems for exchanging infor-
mation.

(2)

To ensure the proper application of value added tax
to the reverse
(VAT) on services which are subject

(6)

Regulation (EC) No 1798/2003 should therefore be
amended accordingly,

(1) Opinion of 7 September 2005.
(2) Opinion of 12 May 2005.
(3) See page 11 of this Official Journal.

(4) OJ L 264, 15.10.2003, p. 1. Regulation as last amended by Regu-

lation (EC) No 1791/2006 (OJ L 363, 20.12.2006, p. 1).

(5) See page 23 of this Official Journal.

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HAS ADOPTED THIS REGULATION:

Article 1

From 1 January 2010, Regulation (EC) No 1798/2003 is hereby
amended as follows:

1.

in Article 1(1), the fourth subparagraph shall be replaced by
the following:

‘For the period provided for in Article 357 of Council
Directive 2006/112/EC of 28 November 2006 on the
common system of value added tax (*), it also lays down
rules and procedures for the exchange by electronic means
of value added tax information on services supplied elec-
tronically in accordance with the special scheme provided
for in Chapter 6 of Title XII of that Directive and also for
any subsequent exchange of
information and, as far as
services covered by that special scheme are concerned, for
the transfer of money between Member States' competent
authorities.

___________
(*) OJ L 347, 11.12.2006, p. 1. Directive as last amended
by Directive 2008/8/EC (OJ L 44, 20.2.2008, p. 11).’;

2.

in Article 2, points 8 to 11 shall be replaced by the
following:

‘8. “intra-Community supply of goods” means any supply
of goods which must be declared in the recapitulative
statement provided for in Article 262 of Directive
2006/112/EC;

9. “intra-Community supply of

any
supply of services which must be declared in the reca-
pitulative statement provided for in Article 262 of
Directive 2006/112/EC;

services” means

10. “intra-Community acquisition of goods” means the
acquisition of the right under Article 20 of Directive
2006/112/EC to dispose
as owner of moveable
tangible property;

11. “VAT identification number” means

the number
in Articles 214, 215 and 216 of

provided for
Directive 2006/112/EC;’;

‘1.
Each Member State shall maintain an electronic
database in which it stores and processes the information
which it collects pursuant
to Chapter 6 of Title XI of
Directive 2006/112/EC.’;

4.

in the first paragraph of Article 23, point 2 shall be
replaced by the following:

‘2. the total value of all intra-Community supplies of goods
and the total value of all intra-Community supplies of
to persons holding a VAT identification
services
number by all operators identified for the purposes of
VAT in the Member State providing the information.’;

5.

in Article 24, the first paragraph shall be replaced by the
following:

‘On the basis of the data stored in accordance with Article
22 and solely in order to prevent a breach of VAT legis-
lation, the competent authority of a Member State shall,
wherever it considers it necessary for the control of intra-
intra-Community
Community acquisitions of goods or
supplies of services taxable in its territory, obtain directly
and without delay, or have direct access to by electronic
means, any of the following information:

1. the VAT identification numbers of

the persons who
carried out the supplies of goods and services referred
to in point 2 of the first paragraph of Article 23;

2. the total value of supplies of goods and services from
each such person to each person holding a VAT identi-
the first
fication number referred to in point 1 of
paragraph of Article 23.’;

6. Article 27(4) shall be replaced by the following:

services and,

‘4.
The competent authorities of each Member State shall
involved in the intra-Community
ensure that persons
supply of goods or of
the period
provided for in Article 357 of Directive 2006/112/EC,
non-established taxable persons
supplying electronically
supplied services, in particular those referred to in Annex
II of that Directive, are allowed to obtain confirmation of
the validity of
the VAT identification number of any
specified person.

for

3.

in Article 22(1), the first subparagraph shall be replaced by
the following:

During the period provided for in Article 357 of Directive
2006/112/EC, the Member States shall provide such confir-
mation by electronic means
in accordance with the
procedure referred to in Article 44(2) of this Regulation.’;

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7. the heading of Chapter VI

shall be replaced by the

13. the following Chapter VIa shall be inserted:

following:

‘PROVISIONS CONCERNING THE SPECIAL SCHEME IN
CHAPTER 6 OF TITLE XII OF DIRECTIVE 2006/112/EC’;

‘CHAPTER VIa

8. Article 28 shall be replaced by the following:

PROVISIONS CONCERNING THE
EXCHANGE AND
CONSERVATION OF INFORMATION IN THE CONTEXT
OF THE PROCEDURE PROVIDED FOR IN DIRECTIVE
2008/9/EC

‘Article 28

Article 34a

The following provisions shall apply concerning the special
scheme provided for in Chapter 6 of Title XII of Directive
2006/112/EC. The definitions contained in Article 358 of
that Directive shall also apply for the purpose of
this
Chapter.’;

9. Article 29(1) shall be replaced by the following:

‘1.
The information provided by the taxable person not
established in the Community to the Member State of
identification when his activities commence pursuant to
Article 361 of Directive 2006/112/EC shall be submitted
in an electronic manner. The technical details, including a
common electronic message,
shall be determined in
accordance with the procedure provided for in Article
44(2) of this Regulation.’;

10.

in Article 30, the first paragraph shall be replaced by the
following:

‘The return with the details set out
in Article 365 of
Directive 2006/112/EC is to be submitted in an electronic
manner. The technical details,
including a common elec-
tronic message, shall be determined in accordance with
the procedure provided for in Article 44(2) of this Regu-
lation.’;

11. Article 31 shall be replaced by the following:

‘Article 31

The provisions in Article 22 of this Regulation shall apply
also to information collected by the Member State of iden-
tification in accordance with Articles 360, 361, 364 and
365 of Directive 2006/112/EC.’;

12. Article 34 shall be replaced by the following:

‘Article 34

Articles 28 to 33 of this Regulation shall apply for the
period
in Article 357 of Directive
2006/112/EC.’;

provided

for

refund but

1. Where the competent authority of the Member State
of establishment receives an application for refund of value
added tax under Article 5 of Directive 2008/9/EC of
the
12 February 2008 laying down detailed rules for
refund of value added tax, provided for
in Directive
2006/112/EC, to taxable persons not established in the
established in another
Member State of
Member State (*) and Article 18 of that Directive is not
applicable, it shall, within 15 calendar days of its receipt
and by electronic means, forward the application to the
competent authorities of each Member State of refund
concerned with confirmation that the applicant as defined
in Article 2(5) of Directive 2008/9/EC is a taxable person
for the purposes of value added tax and that the identifi-
cation or registration number given by this person is valid
for the refund period.

2.
The competent authorities of each Member State of
refund shall notify by electronic means the competent
authorities of the other Member States of any information
required by
them under Article 9(2) of Directive
2008/9/EC. The technical details, including a common elec-
tronic message by which this information is to be trans-
mitted,
shall be determined in accordance with the
procedure provided for in Article 44(2) of this Regulation.

3.
The competent authorities of each Member State of
refund shall notify by electronic means the competent
authorities of the other Member States if they want to
make use of
to
provide the description of business activity by harmonised
codes as referred to in Article 11 of Directive 2008/9/EC.

the option to require the applicant

The harmonised codes referred to in the first subparagraph
shall be determined in accordance with the procedure
provided for in Article 44(2) of this Regulation on the
basis of the NACE classification established by Regulation
(EEC) No 3037/90.

___________
(*) OJ L 44, 20.2.2008, p. 23.’;

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14.

in Article 39, the first paragraph shall be replaced by the
following:

‘For the period provided for in Article 357 of Directive
2006/112/EC,
the Commission and the Member States
shall ensure that such existing or new communication
and information exchange systems which are necessary to
information described in
provide for the exchanges of
Articles 29 and 30 of
this Regulation are operational.
The Commission will be responsible for whatever deve-
lopment of the common communication network/common
the
system interface (CCN/CSI)
exchange of
information between Member States.
Member States will be responsible for whatever deve-
lopment of their systems is necessary to permit this infor-
mation to be exchanged using the CCN/CSI.’.

is necessary to permit

this

Article 2

From 1 January 2015, Regulation (EC) No 1798/2003 is hereby
amended as follows:

1.

in Article 1(1), the fourth subparagraph shall be replaced by
the following:

‘This Regulation also lays down rules and procedures for
the exchange by electronic means of value added tax infor-
mation on services in accordance with the special schemes
in Chapter 6 of Title XII of Directive
provided for
2006/112/EC and also for any subsequent exchange of
information and, as
services covered by those
special schemes are concerned, for the transfer of money
between Member States' competent authorities.’;

far as

2.

in Article 2, the sole paragraph shall be numbered ‘1’ and
the following paragraph shall be added:

the

first

subparagraph and without
Notwithstanding
prejudice to Article 40 of this Regulation, an enquiry into
the amounts declared by a taxable person in connection
with the supply of
telecommunications services, broad-
casting services and electronically supplied services which
are taxable in the Member State in which the requesting
authority is situated and for which the taxable person
makes use or opts not to make use of the special scheme
provided for in Section 3 of Chapter 6 of Title XII of
Directive 2006/112/EC, may only be refused by the
requested authority if
information on the same taxable
person obtained in an administrative enquiry held less
than two years previously, has already been supplied to
the requesting authority.

However, with respect to the requests referred to in the
second subparagraph made by the requesting authority
and assessed by the requested authority in conformity
with a Statement of Best Practices concerning the inter-
action of this paragraph and Article 40(1) to be adopted
in accordance with the procedure referred to in Article
44(2), a Member State which refuses to hold an adminis-
trative enquiry on the basis of Article 40 shall provide to
the requesting authority the dates and values of any
two years by the
relevant supplies made over the last
taxable person in the Member State of
the requesting
authority.’;

4.

in Article 17, the following paragraph shall be added:

‘For the purposes of the first paragraph, each Member State
of establishment shall cooperate with each Member State of
consumption so as to make it possible to ascertain whether
the taxable persons established on its territory declare and
pay correctly the VAT due with regard to telecommuni-
cations services, broadcasting services and electronically
supplied services for which the taxable person makes use
or opts not to make use of the special scheme provided for
in Section 3 of Chapter 6 of Title XII of Directive
2006/112/EC. The Member State of establishment shall
inform the Member State of consumption of any discre-
pancies of which it becomes aware.’;

‘2.
The definitions contained in Articles 358, 358a and
369a of Directive 2006/112/EC shall also apply for the
purposes of this Regulation.’;

5.

in Article 18, the second paragraph shall be replaced by the
following:

3.

in Article 5, paragraph 3 shall be replaced by the following:

‘3.
The request referred to in paragraph 1 may contain a
reasoned request for a specific administrative enquiry. If the
Member State takes the view that no administrative enquiry
is necessary,
immediately inform the requesting
authority of the reasons thereof.

it shall

‘Each Member State shall determine whether it will take
part
infor-
in the exchange of a particular category of
mation, as well as whether it will do so in an automatic
or structured automatic way. However, each Member State
shall take part in exchanges of the information available to
it with regard to telecommunications services, broadcasting
services and electronically supplied services for which the
taxable person makes use or opts not to make use of the
special scheme provided for in Section 3 of Chapter 6 of
Title XII of Directive 2006/112/EC.’;

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6. Article 27(4) shall be replaced by the following:

‘4.
The competent authorities of each Member State shall
involved in the intra-Community
ensure that persons
services and non-established
supply of goods or of
taxable persons
supplying telecommunication services,
broadcasting services and electronically supplied services,
in particular those referred to in Annex II of Directive
2006/112/EC, are allowed to obtain confirmation of the
validity of the VAT identification number of any specified
person.

The Member States shall provide such confirmation by
electronic means
in accordance with the procedure
referred to in Article 44(2) of this Regulation.’;

7. the heading of Chapter VI

shall be replaced by the

following:

‘PROVISIONS CONCERNING THE SPECIAL SCHEMES IN
CHAPTER 6 OF TITLE XII OF DIRECTIVE 2006/112/EC’;

8. Article 28 shall be replaced by the following:

‘Article 28

The following provisions shall apply concerning the special
schemes provided for in Chapter 6 of Title XII of Directive
2006/112/EC.’;

9. Article 29 shall be replaced by the following:

‘Article 29

1.
The information provided by the taxable person not
established in the Community to the Member State of
identification when his activities commence pursuant to
Article 361 of Directive 2006/112/EC shall be submitted
in an electronic manner. The technical details, including a
common electronic message,
shall be determined in
accordance with the procedure provided for in Article
44(2) of this Regulation.

The Member State of identification shall transmit the
2.
information referred to in paragraph 1 by electronic means
to the competent authorities of the other Member States
within 10 days from the end of the month during which
the information was received from the taxable person not
established within the Community. Similar details for the
identification of the taxable person applying the special
scheme under Article 369b of Directive 2006/112/EC
shall be transmitted within 10 days from the end of the
month during which the taxable person stated that his

In the
taxable activities under that scheme commenced.
same manner
the other
Member States shall be informed of the allocated identifi-
cation number.

the competent authorities of

The technical details,
including a common electronic
message, by which this information is to be transmitted,
shall be determined in accordance with the procedure
provided for in Article 44(2) of this Regulation.

The Member State of identification shall without delay
3.
inform by electronic means the competent authorities of
the other Member States if a taxable person not established
in the Community or a taxable person not established in
the Member State of consumption is excluded from the
special scheme.’;

10.

in Article 30, the first and second paragraphs shall be
replaced by the following:

‘The return with the details set out in Articles 365 and
369g of Directive 2006/112/EC is to be submitted in an
electronic manner. The
including a
common electronic message,
shall be determined in
accordance with the procedure provided for in Article
44(2) of this Regulation.

technical details,

The Member State of identification shall transmit this infor-
mation by electronic means to the competent authority of
the Member State of consumption concerned at the latest
10 days after the end of the month in which the return was
received. The information provided for
in the second
paragraph of Article 369g of Directive 2006/112/EC shall
the
also be transmitted to the competent authority of
Member State of establishment concerned. Member States
which have required the tax return to be made in a national
currency other that euro, shall convert the amounts into
euro using the exchange rate valid for the last date of the
reporting period. The exchange shall be done following the
exchange rates published by the European Central Bank for
that day, or, if there is no publication on that day, on the
next day of publication. The technical details by which this
information is to be transmitted shall be determined in
accordance with the procedure provided for in Article
44(2) of this Regulation.’;

11. Article 31 shall be replaced by the following:

‘Article 31

The provisions in Article 22 of this Regulation shall apply
also to information collected by the Member State of iden-
tification in accordance with Articles 360, 361, 364, 365,
369c, 369f and 369g of Directive 2006/112/EC.’;

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12.

in Article 32, the following paragraph shall be added:

‘Concerning the payments to be transferred to the Member
State of consumption in accordance with the special
scheme provided for in Section 3 of Chapter 6 of Title
XII of Directive 2006/112/EC, the Member State of identi-
fication shall, of the amounts referred to in the first and
second paragraphs, be entitled to retain:

(a)

from 1 January 2015 until 31 December 2016 —
30 %,

(b) from 1 January 2017 until 31 December 2018 —

15 %,

(c)

from 1 January 2019 — 0 %.’;

13. Article 34 shall be deleted;

‘The Commission and the Member States shall ensure that
such existing or new communication and information
exchange systems which are necessary to provide for the
exchanges of information described in Articles 29 and 30
are operational. The Commission will be responsible for
whatever development of
the common communication
network/common system interface (CCN/CSI) is necessary
to permit
information between
Member States. Member States will be responsible for
their systems is necessary to
whatever development of
permit
exchanged using the
CCN/CSI.’.

information to be

the exchange of

this

this

Article 3

This Regulation shall enter into force on the day of its publi-
cation in the Official Journal of the European Union.

Articles 1 and 2 shall apply from the following dates:

(a) Article 1, from 1 January 2010;

14.

in Article 39, the first paragraph shall be replaced by the
following:

(b) Article 2, from 1 January 2015.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 12 February 2008.

For the Council
The President

A. BAJUK