2008/737/EC: Council Decision of 15 September 2008 authorising the Italian Republic to apply a measure derogating from Article 285 of Directive 2006/112/EC on the common system of value added tax
Date: 2008-09-15
Institutions: Council of the European Union
Subjects: Italy, VAT, derogation from EU law, small business, tax exemption

18.9.2008

EN

Official Journal of the European Union

L 249/13

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

II

DECISIONS

COUNCIL

COUNCIL DECISION

of 15 September 2008

authorising the Italian Republic to apply a measure derogating from Article 285 of Directive
2006/112/EC on the common system of value added tax

(2008/737/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community,

establishing the European

regard

Having
2006/112/EC of
to Council Directive
28 November 2006 on the common system of value added
tax (1), and in particular Article 395(1) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

The Italian Republic did not make use of the provisions
of Article 14 of Second Council Directive 67/228/EEC of
11 April 1967 on the harmonisation of legislation of
Member States concerning turnover taxes — Structure
and procedures for application of the common system
of value added tax (2) which means that a scheme to
taxable persons could only be introduced in
exempt
respect of taxable persons whose annual turnover was
no higher than EUR 5 000.

In a letter registered by the Commission's Secretariat-
General on 15 November 2007 Italy requested authori­
sation from 1 January 2008 for a measure derogating
from Article 285 of Directive 2006/112/EC in order to
exempt taxable persons whose annual turnover is no
release
than EUR 30 000. This measure will
higher

(1) OJ L 347, 11.12.2006, p. 1.
(2) OJ 71, 14.4.1967, p. 1303/67. Directive repealed by Directive

77/388/EEC (OJ L 145, 13.6.1977, p. 1).

(3)

(4)

(5)

(6)

those taxable persons from certain or all of the value
added tax (VAT) obligations referred to in Chapters 2
to 6 of Title XI of Directive 2006/112/EC, whilst the
optional character of the measure will allow businesses
to opt for the normal VAT arrangements.

395(2)

accordance with Article

In
of Directive
2006/112/EC the Commission informed the other
Member States by letter dated 6 May 2008 of
the
request made by Italy. By letter dated 8 May 2008, the
Commission notified Italy that it had all the information
necessary to consider the request.

States

A special scheme for small enterprises is already available
to Member
under Title XII of Directive
2006/112/EC. This measure derogates from Article 285
of Directive 2006/112/EC only in so far as the annual
turnover threshold for the scheme is higher than that
currently allowed for Italy.

The threshold requested by Italy may significantly reduce
the VAT obligations of the smallest businesses. It is in
line with the thresholds that apply with respect to certain
other Member States.

The Commission is committed to establishing a common
annual turnover threshold below which taxable persons
may be exempt from VAT as a measure to help reduce
In 2004 the
the burdens on small businesses.
Commission proposed to allow Member States
the
option of increasing the annual turnover threshold for
small businesses to be exempt from VAT. The Italian
request is in line with the Commission proposal.

L 249/14

EN

Official Journal of the European Union

18.9.2008

(7)

(8)

(9)

(10)

Italy would also like the possibility to increase the ceiling
to maintain its value in real terms, and so be able to
apply a provision akin to that in Article 286 of Directive
2006/112/EC to this measure.

falling between 1 January 2008 and
to tax periods
31 December 2010,
from VAT taxable persons
whose annual turnover is no higher than EUR 30 000. This
scheme is optional for taxable persons.

to exempt

Considering that the tax period is annual and in order to
allow taxable persons to benefit from the simplification
measure as soon as possible, Italy should be allowed to
make the optional scheme available as from 1 January
2008.

The derogation will have no impact on the European
Communities' own resources accruing from value added
tax.

From information provided by the Italian Republic, the
measure will lead to a reduction of the overall amount of
tax revenue collected at the final stage of consumption of
some 0,15 % in the first year of implementation, rising
to around 0,25 % in the following two years,

Article 2

The Italian Republic may raise that ceiling in order to maintain
the value of the exemption in real terms.

Article 3

This Decision shall expire on the date of entry into force of
turnover
Community rules establishing a common annual
threshold below which taxable persons may be exempt from
VAT, but on 31 December 2010 at the latest.

This Decision is addressed to the Italian Republic.

Article 4

HAS ADOPTED THIS DECISION:

Done at Brussels, 15 September 2008.

Article 1

By way of derogation from Article 285 of Directive
2006/112/EC, the Italian Republic is authorised, with respect

For the Council
The President

B. KOUCHNER