Proposal for a Council Regulation laying down implementing measures for Directive 2006/112/EC on the common system of value added tax (Recast)
Date: 2009-12-17
Institutions: European Commission
Subjects: VAT, application of EU law, basis of tax assessment, delivery, distributive trades, provision of services, tax exemption, tax harmonisation, tax on consumption, tax relief

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 17.12.2009 
COM(2009)672 final 

2009/0177 (NLE) 

Proposal for a 

COUNCIL REGULATION 

laying down implementing measures for Directive 2006/112/EC on the common system 
of value added tax 

(Recast)

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EXPLANATORY MEMORANDUM 

CONTEXT OF THE PROPOSAL 

Grounds for and objectives of the proposal 

Article 397  of  Council  Directive  2006/112/EC1  (hereinafter  “the  VAT  Directive”)  provides 
that  “the  Council,  acting  unanimously  on  a  proposal  from  the  Commission,  shall  adopt  the 
measures  necessary  to  implement  this  Directive”.  This  Directive  was  a  recast  of  Council 
Directive 77/388/EEC2 (hereinafter “the Sixth VAT Directive”).  

On the basis of Article 29a of the Sixth VAT Directive (which contained the same provision 
in  Council  Regulation  (EC) 
as  Article 397), 
No 1777/20053 (hereinafter “Regulation 1777/2005”), which gave legal certainty to a number 
of non-binding guidelines agreed by the VAT Committee between 1977 and 2003.  

the  Council  adopted  such  measures 

Since  the  adoption  of  Regulation  1777/2005,  the  VAT  Committee  has  agreed  further 
guidelines,  in  particular  a  number  of  which  relate  to  the  adoption  of  Council  Directive 
2008/8/EC4. Therefore it is necessary to recast Regulation 1777/2005 to reflect the structure 
and  numbering  of  the  VAT  Directive,  and  to  incorporate  the  guidelines  of  the  VAT 
Committee  since  the  last  exercise  that  are  to  be  considered  as  measures  necessary  to 
implement the VAT Directive.  

General context 

On  12 February  2008,  the  Council  adopted  the  VAT  Package  which  includes,  among  other 
elements,  Directive  2008/8/EC.  This  Directive  introduces  changes  to  the  VAT  Directive  as 
regards the place of supply of services which are very important for business stake-holders. Its 
objective is to simplify the operation of the VAT system and to ensure that VAT on services 
accrues  to  the  country  of  consumption.  Most  of  the  changes  need  to  be  implemented  by 
Member States into their national legislation with effect from 1 January 2010. 

The VAT Package brings changes which will reshape the main rules applicable to the place of 
supply of services. 

On the one hand, it introduces a general rule that the supply of services to a taxable person 
acting as such is taxed in the country of the customer, whilst that of the supply of services to a 
non-taxable  person  is  taxed  in  the  country  of  the  supplier.  As  such,  for  these  rules  to  be 
applied correctly, it is important that the supplier can not only correctly establish where the 
customer is located, but also his status. Many of the proposed measures relate to this. 

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Council  Directive  2006/112/EC  of  28 November  2006  on  the  common  system  of  value  added  tax 
(OJ L 347, 11.12.2006, p. 1).  
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 (OJ L 145, 
13.6.1977, p. 1). 
Council  Regulation  (EC)  No 1777/2005  of  17 October  2005  laying  down  implementing  measures  for 
Directive 77/388/EEC on the common system of value added tax (OJ L 272, 3.10.2006, p. 15). 
Council  Directive  2008/8/EC  of  12 February  2008  amending  Directive  2006/112/EC  as  regards  the 
place of supply of services (OJ L 44, 20.2.2008, p. 11). 

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On the other hand, there are also a number of further provisions which provide exceptions to 
these general rules in order to ensure in the most efficient way taxation of services at the place 
where they are consumed. This is the case, for example, for the supply of restaurant services, 
the  hiring  of  means  of  transport,  services  connected  with  immovable  property,  etc.  These 
provisions also require clarification for the correct application of the rules. 

For  these  reasons,  in  order  to  assure,  on  the  Community  level,  the  smooth  and  coordinated 
transition to the new system, the Commission has undertaken in-depth and close consultations 
with businesses and Member States. As a result of this, the Commission is now presenting a 
proposal for a Council Regulation laying down implementing measures concerning practical 
issues relating to the adoption of the VAT Package.  

However, this proposal could not only contain implementing measures for the VAT Package. 
Indeed, the former Regulation 1777/2005 needs to be recast in order to adapt its structure to 
the new structure of the VAT Directive after its recast in 2006. Moreover, guidelines agreed 
by the VAT Committee since 2005 on other matters should also be integrated. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

Consultation of interested parties 

In  order  to  identify  the  areas  where  implementing  measures  would  be  appropriate,  Member 
States  were  extensively  consulted  during  Working  Party  meetings,  FISCALIS  seminars  and 
VAT Committee meetings. Exchanges of views with businesses also took place. 

Collection and use of expertise 

There was no need for external expertise. 

Impact assessment 

The  Regulation  aims  at  clarifying  and  giving  legal  certainty  to  existing  practices.  The 
measures  concerned  are  of  a  purely  technical  nature  and  there  is  no  need  for  an  impact 
assessment. 

LEGAL ELEMENTS OF THE PROPOSAL 

Subsidiarity principle 

The  subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  under  the  exclusive 
competence of the Community. The objectives of the proposal cannot be sufficiently achieved 
by the Member States. 

Even though the Member States have the competence for transposition of Community law, it 
is  essential  that  the  provisions  and  incoming  changes  are  transposed  in  the  national 
legislations in a coordinated manner in order to avoid that divergent application rules adopted 
by the Member States could lead to double taxation or non-taxation. 

For  the  reasons  outlined  above,  only  Community  action  can  ensure  equal  treatment  of 
business  and  citizens  in  the  European  Union.  The  proposal  therefore  complies  with  the 
subsidiarity principle. 

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Proportionality principle 

The recast of Regulation 1777/2005 is necessary to adapt it to the VAT Directive, which has 
recast the Sixth VAT Directive on which the Regulation was based. 

The  new  provisions  are  based  on  further  guidelines  agreed  by  the  VAT  Committee,  in 
particular a number of which relate to Directive 2008/8/EC amending Directive 2006/112/EC 
as  regards  the  place  of  supply  of  services.  These  measures  are  necessary  to  implement  the 
VAT Directive. 

The proposal therefore complies with the proportionality principle. 

Recasting 

The proposal involves recasting 

ADDITIONAL INFORMATION 

Detailed explanation of the proposal 

Part  of  the  exercise  consists  in  codification  of  elements  covered  by  Regulation  1777/2005, 
which was adopted under the Sixth VAT Directive. However, a simple codification was not 
sufficient in order to adapt its structure and align it to the VAT Directive (which itself recast 
the Sixth VAT Directive). An exercise of recast is necessary for that. These changes are self-
explanatory and do not need detailed explanation. Any adaptation made appears as underlined 
or strikethrough in the text. 

On  the  other  hand,  this  proposal  includes  new  measures  based  on  guidelines  agreed  by  the 
VAT  Committee  on  different  matters  prior  to  and  since  2005,  when  Regulation  1777/2005 
was first adopted. These new measures are of 3 types: 

•  Type 1: several guidelines agreed prior to 2005 on different elements of the VAT Directive 

but not included as part of the first exercise 

•  Type 2: several guidelines agreed since 2005 on different elements of the VAT Directive 

yet to be transformed into implementing measures 

•  Type 3: guidelines agreed recently and linked to changes introduced by the VAT Package. 

Only these new elements will be briefly commented on below. 

Type 1 Guidelines 

These  are  guidelines  which  were  considered  during  the  discussions  during  the  previous 
exercise,  but  which  for  various  reasons  were  not  included  in  Regulation  1777/2005. 
Subsequent  discussions  in  Working  Party  No 1  have  lead  to  the  conclusion  that  these 
guidelines were worth including in any subsequent exercise. 

Article 2 concerns the acquisition of a new means of transport when moving house, and the 
return  of  a  new  means  of  transport  by  a  non-taxable  person  originally  supplied  under  the 
exemption provided for in Article 138(2)(a) of the VAT Directive. 

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Article 46 confirms that holiday accommodation referred to in point (12) of Annex III of the 
VAT Directive includes the hiring of caravans, tents and mobile homes. 

Article 49 clarifies that the exemption for the supply of services relating to the importation of 
goods,  where  the  value  of  the  service  is  included  in  the  taxable  amount,  also  applies  to 
services connected with the importation of movable property when changing residence. 

Article 54  clarifies  that  if  the  recipient  is  located  outside  the  Member  State  in  which  the 
supply  takes  place,  the  common  VAT  and  excise  duty  exemption  certificate  to  be  found  in 
Annex II is to be used as proof that the recipient is entitled to the exemption under Article 151 
of  the  VAT  Directive.  The  certificate  should  be  retained  by  the  customer  as  part  of  his 
accounting  records,  or,  if  the  exemption  is  granted  by  means  of  a  refund,  attached  to  the 
application for refund. 

Type 2 Guidelines 

These are guidelines on which unanimous agreement has been reached in the VAT Committee 
since the previous exercise, and which merit inclusion in this exercise. 

Articles 7 and 12 clarify the treatment of digital photography processing, and the printing of 
paper format publications, in particular the conditions under which these should be regarded 
as a supply of goods or a supply of services respectively. 

Article 52 states that the exemption for diplomats, international bodies, NATO forces and the 
like, under Article 151 of the VAT Directive applies to electronic services even where these 
are  provided  by  persons  to  whom  the  special  scheme  for  electronically  supplied  services 
applies. 

Article 53 defines the elements of a body to be set up as a European Research Infrastructure 
Consortium  (ERIC)  which  would  enable  it  to  be  regarded  as  an  international  body  and 
therefore  benefit  from  the  exemption  in  point (g)  of  Article 143  and  point (b)  of  the  first 
subparagraph of Article 151(1) of the VAT Directive, providing it is recognised as such by its 
host Member State. 

Type 3 Guidelines 

These  are  guidelines  which  result  from  changes  to  the  VAT  Package.  They  have  reached 
unanimous or almost unanimous agreement in the VAT Committee. 

Articles 3, 4 and 5 clarify elements of the scope of VAT, specifically supplies of services to 
persons  established  outside  the  Community;  and  supplies  of  services  to  persons  who  are 
entitled to non-taxation of their intra-Community acquisitions of goods. 

Article 8 provides a definition of restaurant and catering services, whilst Article 9 makes clear 
that  where  the  provision  of  food  and/or  beverages  is  made  by  one  taxable  person,  and  the 
provision of the support services allowing for its immediate consumption is made by another 
taxable person, then each supply should be assessed on its own merits. 

A number of concepts need to be defined in order to facilitate the correct application of the 
place of supply rules introduced by the VAT Package. Those concepts, in particular, concern 
the determination of the place of establishment of a business (Article 14); the notion of a fixed 
establishment (Article 15); permanent address (Article 16); and usual residence (Article 17). It 

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is also established that a letter box or brass plate company must meet certain requirements in 
order to be considered as a place of establishment of a business. 

Articles 19  and  38  clarify  that  it  is  the  means  of  passenger  transport  which  determines  the 
section of a passenger transport operation effected within the Community, not the passengers 
travelling in the means of transport. 

Article 21  clarifies  that  where  the  status  of  the  customer  is  a  determinant  for  the  place  of 
supply of a service, this status shall only be determined in accordance with the conditions in 
Title III  of  the  VAT  Directive.  Therefore,  any  special  scheme  which  the  customer  may  be 
subject to, such as that for small enterprises, can not be taken into account in this respect. In 
addition, the supplier should verify the information provided by the customer concerning his 
taxable status. 

Article 22  confirms  that  where  a  non-taxable  legal  person  is  already  identified  for  VAT 
purposes because his intra-Community acquisitions are subject to VAT, then he is regarded as 
a taxable person. 

Article 23 lays down that where a taxable person receives a supply of services for his own, or 
his  staff’s  use,  or  more  generally,  for  purposes  other  than  those  of  his  business,  then  that 
person shall not be regarded as a taxable person because he is not acting as such. When the 
supplier assesses the use to which the customer will put the service, the nature of the service 
shall be taken into account, and if there is any doubt, a self declaration may be required from 
the customer. 

Article 24 clarifies that only the circumstances present at the time of the supply are relevant 
when assessing the purpose to which each service will be put, and any subsequent changes are 
irrelevant. 

Article 25 states that where a single service is intended for mixed business and personal use of 
a taxable person, the entirety of that service shall be regarded as a supply to the taxable person 
acting as such. 

Articles 26  to  30  deal  with  the  clarification  of  the  customer  location,  as  this  is  particularly 
relevant in the new place of supply of services rules. 

Article 35 clarifies that intermediary services, other than those of experts and estate agents in 
connection with immovable property, fall within Article 44 of the VAT Directive if supplied 
to a taxable person, and Article 46 if supplied to a non-taxable person. 

The  place  of  supply  rules  state  that  the  ‘section  of  a  passenger  transport  operation  effected 
within  the  Community’  is  the  section  of  the  operation  between  the  points  of  departure  and 
arrival within the Community, with the point of departure being the first point of passenger 
embarkation within the Community, and that of arrival being the first point of disembarkation 
within  the  Community.  As  these  points  of  embarkation  and  disembarkation  may  lie  some 
distance  within  the  territory  of  a  Member  State,  there  may  be  a  ‘section  of  a  passenger 
transport operation’ which, whilst it is not ‘effected within the Community’, is nevertheless 
on the territory of a Member State. Articles 39 and 40 clarify the treatment of restaurant and 
catering services on ships, aircraft or trains in these situations. 

Article 41  defines  a  means  of  transport  as  referred  to  in  Articles 56  and  59  of  the  VAT 
Directive;  Article 42  lays  down  the  treatment  of  contracts  for  the  hiring  of  a  means  of 

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transport, particularly when two contracts follow each other; and Article 43 clarifies the place 
where a means of transport is regarded as being actually put at the disposal of the customer. 

Article 56 clarifies the notion of the intervention of a fixed establishment in a supply for the 
purposes of the application of point (b) of Article 192a of the VAT Directive, and Article 57 
clarifies that where a taxable person has established his business in a Member State where the 
VAT is due, then Article 192a of the VAT Directive shall not apply, irrespective of whether 
that place of establishment actually intervened in that supply. 

Article 58  states  that  where  a  supplier  meets  the  conditions  in  Articles 21  and  23,  the 
customer may be held jointly liable under Article 205 of the VAT Directive. 

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(cid:208) 1777/2005  

2009/0177 (NLE) 

Proposal for a 

COUNCIL REGULATION 

laying down implementing measures for Directive 77/388/EEC2006/112/EC on the 
common system of value added tax 

(Recast) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the European Union and to the Treaty on the Functioning of 
the European Union, 

Having  regard  to  the  Sixth  Council  Directive  77/388/EEC2006/112/EC  of  17 May 
197728 November  2006  on  the  harmonisation  of  the  laws  of  the  Member  States  relating  to 
turnover taxes — Commoncommon system of value added tax: uniform basis of assessment5, 
hereinafter referred to as ‘Directive 77/388/EEC’6, and in particular Article 29a397 thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

A  number  of  substantial  changes  are  to  be  made  to  Council  Regulation  (EC) 
No 1777/2005 of 17 October 2005 laying down implementing measures for Directive 
77/388/EEC on the common system of value added tax7. In the interests of clarity, that 
Regulation should be recast. 

(cid:216) new 

(1)(2)  Directive  77/388/EEC2006/112/EC  contains  rules  on  value  added  tax  ⌦ (VAT) ⌫ 
which, in some cases, are subject to interpretation by the Member States. The adoption 

(cid:208) 1777/2005 Recital 1 (adapted) 

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OJ L 145,  13.6.1977,  p. 1.  Directive  as  last  amended  by  Directive  2004/66/EC  (OJ L 168,  1.5.2004, 
p. 35). 
OJ L 347, 11.12.2006, p. 1. 
OJ L 288, 29.10.2005, p. 1. 

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of  common  provisions  implementing  Directive  77/388/EEC2006/112/EC  should 
ensure that application of the value added tax ⌦ VAT ⌫ system complies more fully 
with  the  objective  of  the  internal  market,  in  cases  where  divergences  in  application 
have  arisen  or  may  arise  which  are  incompatible  with  the  proper  functioning  of  the 
said  ⌦ such  internal ⌫  market.  These  implementing  measures  are  legally  binding 
only from the date of the entry into force of this Regulation and are without prejudice 
to the validity of the legislation and interpretation previously adopted by the Member 
States. 

(3) 

Changes resulting  from the adoption of  Council Directive 2008/8/EC  of 12 February 
2008  amending  Directive  2006/112/EC  as  regards  the  place  of  supply  of  services8 
should be reflected in this regulation. 

(cid:216) new 

(cid:208) 1777/2005 Recital 2 (adapted) 

(2)(4)  It is necessary for the achievement of the basic objective of ensuring a more uniform 
application  of  the  current  value  added  tax  ⌦ VAT ⌫  system  to  lay  down  rules 
implementing  Directive  77/388/EEC2006/112/EC,  in  particular  in  respect  of  taxable 
persons, the supply of goods and services, and the place of their supply. In accordance 
with  the  principle  of  proportionality  as  set  out  in  the  third  subparagraph  of  Article 5 
⌦ Article 5(4) ⌫ of the Treaty ⌦ on European Union ⌫, this Regulation does not 
go  beyond  what  is  necessary  in  order  to  achieve  the  objective  pursued.  Since  it  is 
binding and directly applicable in all Member States, uniformity of application will be 
best ensured by a Regulation. 

(cid:208) 1777/2005 Recital 3 (adapted) 

(3)(5)  These  implementing  provisions  contain  specific  rules  in  response  to  selective 
questions  of  application  and  are  designed  to  bring  uniform  treatment  throughout  the 
Community to those specific circumstances only. They are therefore not conclusive for 
other  cases  and  ⌦ should  therefore ⌫  ,  in  view  of  their  formulation,  are  to  be 
applied restrictively. 

(6) 

If a non-taxable person changes residence and transfers a new means of transport, or a 
new  means  of  transport  returns  to  the  Member  State  from  which  it  was  originally 
supplied  exempt  of  VAT,  it  should  be  clarified  that  the  acquisition  of  such  a  new 
means of transport is not a taxable transaction. 

(cid:216) new 

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OJ L 44, 20.2.2008, p. 11. 

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(7) 

(8) 

It  is  necessary  to  clarify  the  circumstances  under  which  the  supply  of  services  to  an 
establishment  outside  the  Community  of  a  taxable  person  acting  as  such,  or  a  non-
taxable person, falls outside the scope of VAT. 

The  allocation  of  a  VAT  identification  number  to  a  taxable  person  who  makes  or 
receives a supply of services to or from another Member State, and for which the VAT 
is payable solely by the customer, should not affect the right of that taxable person to 
benefit from non-taxation of his intra-Community acquisitions of goods. 

(cid:208) 1777/2005 Recital 4 (adapted) 
(cid:214) new 

(4)(9)  The  further  integration  of  the  internal  market  has  led  to  an  increased  need  for 
cooperation  by  economic  operators  established  in  different  Member  States  across 
internal  borders  and  the  development  of  European  economic  interest  groupings 
(EEIGs), constituted in accordance with Council Regulation (EEC) No 2137/85 ⌦ of 
25 July  1985  on  the  European  Economic  Interest  Grouping  (EEIG) ⌫9,.  iIt  should 
therefore be provided ⌦ clarified ⌫ that such EEIGs are also taxable persons where 
they  supply  goods  or  services  for  consideration  (cid:214) ,  even  if  such  supply  is  made  to 
their members  . 

(cid:216) new 

(10)  The nature of certain transactions should be specified in order to create greater legal 
certainty. Specifically, the increased technical nature of digital photography processing 
and  the  printing  of  paper  format  publications  makes  it  necessary  to  clarify  the 
conditions  under  which  these  supplies  should  be  regarded  as  a  supply  of  goods  or  a 
supply of services. In addition it is necessary to clearly define restaurant and catering 
services,  the  distinction  between  the  two,  and  the  appropriate  treatment  of  these 
services. 

(cid:208) 1777/2005 Recital 8 (adapted) 

(8)(11) Certain  specific  services  such  as  the  assignment  of  television  broadcasting  rights  in 
respect of football matches, the translation of texts, services for claiming value added 
tax refunds, certain services as an agent, the hiring of means of transport and certain 
electronic  services  involve  cross-border  scenarios  or  even  the  participation  of 
economic  operators  established  in  third  countries.  The  place  of  supply  of  these 
services  needs  to  be  clearly  determined  in  order  to  create  greater  legal  certainty.  It 
should  be  noted  that  ⌦ In  order  to  enhance  clarity, ⌫  the  services  identified  as 
electronic  services  or  otherwise  do  not  constitute  ⌦ should  be  listed  without  this 
constituting ⌫ a definitive, exhaustive list. 

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OJ L 199, 31.7.1985, p. 1. 

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(6)(12) It is necessary, on the one hand, to establish that a transaction which consists solely of 
assembling the various parts of a machine provided by a customer must be considered 
as a supply of services, and, on the other hand, to establish the place of such supply. 

(cid:208) 1777/2005 Recital 6 

(5)(13) The sale of an option as a financial instrument should be treated as a supply of services 

separate from the underlying transactions to which the option relates. 

(cid:208) 1777/2005 Recital 5 

(14)  To ensure the effective application of rules relating to where taxable transactions take 
place, concepts such as the place where a taxable person has established his business, 
fixed establishment, permanent address and the place where a person usually resides 
should be clarified. 

(cid:216) new 

(185)  Rules should be established to ensure the uniform treatment of supplies of goods once 
a supplier has exceeded the distance selling threshold for supplies to another Member 
State,. 

(cid:208) 1777/2005 Recital 18 

(16) 

It should be clarified that the journey of the means of transport determines the section 
of a passenger transport operation effected within the Community, and not the journey 
of the passengers within it. 

(cid:216) new 

(17) 

In the case of intra-Community acquisition of goods, the right of the Member State of 
acquisition  to  tax  the  acquisition  should  remain  unaffected  by  the  value  added  tax 
⌦ VAT ⌫ treatment of the transaction in other Member States. 

(cid:208) 1777/2005 Recital 17 (adapted) 

(18)  As the correct application of the rules governing the place of supply of services relies 
heavily  on  the  status  of  the  customer,  which  should  be  based  solely  on  the  rules 

(cid:216) new 

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governing  what  is  a  taxable  person,  and  on  the  capacity  in  which  the  customer  is 
acting,  it  is  necessary  to  establish  what  the  supplier  should  be  required  to  obtain  as 
evidence from his customer. 

(19)  Determining the customer’s capacity should be based on how the services supplied to 
that customer at the time of supply are going to be used. Services for his private use or 
for  that  of  his  staff,  or  more  generally,  for  purposes  other  than  those  of  his  business 
should not be regarded as acquired in the customer’s capacity as a taxable person. 

(20) 

It should be ensured that a single service acquired for the business but also used for 
private purposes is only taxed in one place. 

(21)  Where  services  are  supplied  to  a  customer  established  in  more  than  one  place,  the 
place where the services are received should be identified. It is in that case necessary 
to take account of the circumstances under which the supply takes place. 

(cid:208) 1777/2005 Recital 8 (adapted) 

(8)(22) Certain  specific  services  such  as  the  assignment  of  television  broadcasting  rights  in 
respect of football matches, the translation of texts, services for claiming value added 
tax  ⌦ VAT ⌫  refunds,  certain  services  as  an  agent,  ⌦ intermediary  and ⌫  the 
hiring  of  means  of  transport  and  certain  electronic  services  involve  cross-border 
scenarios  or  even  the  participation  of  economic  operators  established  in  third 
countries. The place of supply of these services needs to be clearly determined in order 
to  create  greater  legal  certainty.  It  should  be  noted  that  the  services  identified  as 
electronic services or otherwise do not constitute a definitive, exhaustive list. 

(7)(23) Where various services supplied in the framework of organising a funeral form a part 

of a single service, the rule on the place of supply should also be determined. 

(cid:208) 1777/2005 Recital 7 (adapted) 

(cid:216) new 

(24) 

It  is  necessary  to  clarify  the  treatment  of  restaurant  services  and  catering  services 
supplied  during  a  section  of  a  passenger  transport  operation  effected  within  the 
Community,  and  those  supplied  outside  such  a  section  but  on  the  territory  of  a 
Member State. 

(25)  Given  that  particular  rules  for  the  hiring  of  a  means  of  transport  depend  on  the 
duration of  its possession or use, it is necessary not only to establish which vehicles 
should be considered ‘means of transport’, but also to clarify the treatment of such a 
supply where one successive contract follows another. It is also necessary to determine 
the place where a means of transport is actually put at the disposal of the customer. 

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(9)(26) In certain specific  circumstances  a credit  or  debit card handling  fee  which  is  paid in 
connection  with  a  transaction  should  not  reduce  the  taxable  amount  for  the  latter 
⌦ that transaction ⌫. 

(cid:208) 1777/2005 Recital 9 (adapted) 

(27) 

It is necessary to clarify that holiday accommodation to which a reduced rate may be 
applied includes tents, caravans and mobile homes hired out by camping sites. 

(cid:216) new 

(10)(28) 

Vocational training or retraining should include instruction relating directly to 
a  trade  or  profession  as  well  as  any  instruction  aimed  at  acquiring  or  updating 
knowledge for vocational purposes, regardless of the duration of a course. 

(cid:208) 1777/2005 Recital 10 

(11)(29) 

‘Platinum nobles’ should be treated as being excluded from the exemptions for 

currency, bank notes and coins. 

(cid:208) 1777/2005 Recital 11 

(30)  The exemption of the supply of services relating to the importation of goods the value 
of  which  is  included  in  the  taxable  amount  of  those  goods  should  cover  transport 
services carried out during a change of residence. 

(cid:216) new 

(12)(31) 

Goods  transported  outside  the  Community  by  the  purchaser  thereof  and  used 
for the equipping, fuelling or provisioning of means of transport used for non-business 
purposes by persons other than natural persons, such as bodies governed by public law 
and associations, should be excluded from the exemption for export transactions. 

(cid:208) 1777/2005 Recital 12 

(13)(32) 

To  guarantee  uniform  administrative  practices  for  the  calculation  of  the 
minimum value for exemption on exportation of goods carried in the personal luggage 
of travellers, the provisions on such calculations should be harmonised. 

(cid:208) 1777/2005 Recital 13 

EN 

13 

   EN 

 
 
 
 
 
 
 
 
(cid:216) new 

(33)  The exemption for certain transactions treated as exports should also apply to services 

covered by the special scheme for electronically supplied services. 

(34)  A body to be set up under Council Regulation (EC) No 723/2009 of 25 June 2009 on 
the  Community  legal  framework  for  a  European  Research  Infrastructure  Consortium 
(ERIC)10 should only qualify as an international body for the purposes of exemption 
from VAT where it fulfils certain conditions. The features necessary for it to benefit 
from exemption should be identified. 

(35)  Supplies  of  goods  and  services  under  diplomatic  and  consular  arrangements,  or  to 
recognised  international  bodies,  or  to  certain  armed  forces  are  exempt  from  VAT 
subject to certain limits and conditions. In order that a taxable person making such a 
supply from another Member State can establish that the conditions and limits for the 
exemption are met, a common certificate should be established. 

(14)(36) 

Electronic  import  documents  should  also  be  admitted  to  exercise  the  right  to 

deduct, where they fulfil the same requirements as paper-based documents. 

(cid:208) 1777/2005 Recital 14 

(cid:216) new 

(37)  Where a supplier of goods or services has established his business within the territory 
of  the  Member  State  where  the  tax  is  due,  or  where  he  has  a  fixed  establishment 
therein and the human or technical resources of that fixed establishment are used for 
the  fulfilment  of  the  supply  made  within  that  Member  States,  that  supplier  should 
remain liable for payment of VAT. 

(38) 

It  should  be  clarified  that,  where  a  supplier  of  services  satisfies  certain  conditions, 
Member States are able to require payment of VAT by the customer through existing 
measures. 

(15)(39) 

Weights  for  investment  gold  which  are  definitely  accepted  by  the  bullion 
market should be named and a common date for establishing the value of gold coins 
be determined to ensure equal treatment of economic operators. 

(cid:208) 1777/2005 Recital 15  

10 

OJ L 206, 8.8.2009, p. 1. 

EN 

14 

   EN 

 
 
 
 
 
                                                 
(16)(40) 

The  special  scheme  for  taxable  persons  not  established  in  the  Community, 
supplying electronic services to non-taxable persons established or resident within the 
Community  is  subject  to  certain  conditions.  Where  those  conditions  are  no  longer 
fulfilled, the consequences thereof should, in particular, be made clear. 

(cid:208) 1777/2005 Recital 16 

(cid:216) new 

(41)  Since  Member  States  are  required  to  adopt  the  laws,  regulations  and  administrative 
provisions necessary to comply with Council Directive 2008/118/EC of 16 December 
2008  concerning  the  general  arrangements  for  excise  duty  and  repealing  Directive 
92/12/EEC11  with  effect  from  1 April  2010,  certain  provisions  of  this  Regulation 
should apply from the same date. 

(42)  Certain changes result from the adoption of Directive 2008/8/EC. Since these changes 
concern  the  taxation  of  the  long-term  hiring  of  means  of  transport  from  1 January 
2013,  the  corresponding  provisions  of  this  Regulation  should  apply  from  the  same 
date, 

HAS ADOPTED THIS REGULATION: 

(cid:208) 1777/2005 
(cid:214) new 

CHAPTER I 

SUBJECT MATTER 

Article 1 

This Regulation lays down measures for the implementation of Articles 4, 6, 9, 11, 13, 15, 18, 
26b, 26c, 28a and 28b of Directive 77/388/EEC, and of Annex L thereto (cid:214) Titles I to V, and 
VII to XII of Directive 2006/112/EC  . 

11 

OJ L 9, 14.1.2009, p. 12. 

EN 

15 

   EN 

 
 
 
 
                                                 
(cid:216) new 

CHAPTER II 

SCOPE 

(TITLE I OF DIRECTIVE 2006/112/EC)  

Article 2 

The  following  shall  not  result  in  intra-Community  acquisitions  within  the  meaning  of 
Article 2(1) of Directive 2006/112/EC: 

(a) 

(b) 

the  transfer  of  a  new  means  of  transport  by  a  non-taxable  person  upon  change  of 
residence provided that the exemption provided for in point (a) of Article 138(2) of 
Directive 2006/112/EC could not apply at the time of supply; 

the return of a new means of transport by a non-taxable person to the Member State 
from which it was initially supplied under the exemption provided for in point (a) of 
Article 138(2) of Directive 2006/112/EC. 

Article 3 

1. Where the place of supply of services referred to in Article 44 of Directive 2006/112/EC is 
outside the Community, the transaction shall not be subject to VAT. 

2.  In  order  to  demonstrate  that  the  supply  is  not  subject  to  VAT,  the  supplier  shall  obtain 
sufficient  evidence  from  his  customer  that  that  customer  is  a  taxable  person  acting  as  such, 
and that one of the following conditions is met: 

(a) 

(b) 

(c) 

the customer’s business is established outside the Community; 

the fixed establishment receiving the services is located outside the Community; 

in the absence of such establishment, that the customer’s permanent address or usual 
residence is outside the Community. 

3.  The  evidence  referred  to  in  paragraph 2  shall  include  a  VAT  number,  or  similar  number 
used  to  identify  the  business,  attributed  by  the  country  of  establishment,  or  other  sufficient 
evidence. 

1. Where the place of supply of services referred to in Article 59 of Directive 2006/112/EC is 
outside the Community, the transaction shall not be subject to VAT. 

Article 4 

EN 

16 

   EN 

 
 
2.  In  order  to  demonstrate  that  the  supply  is  not  subject  to  VAT,  the  supplier  shall  obtain 
sufficient evidence from the customer that that customer is established, or has his permanent 
address or usual residence, outside the Community. 

Article 5 

Any  taxable  person  who  is  entitled  to  non-taxation  of  his  intra-Community  acquisitions  of 
goods,  other  than  new  means  of  transport  or  products  subject  to  excise  duty,  in  accordance 
with  Article 3  of  Directive  2006/112/EC,  shall  continue  to  remain  so  even  if,  pursuant  to 
Article 214(1)(d) or (e) of that Directive, a VAT identification number has been attributed to 
that  taxable  person  for  the  services  received  for  which  he  is  liable  to  pay  VAT  or  for  the 
services  supplied  by  him  within  the  territory  of  another  Member  State  for  which  VAT  is 
payable solely by the recipient. 

(cid:208) 1777/2005 (adapted) 

CHAPTER IIIII 

TAXABLE PERSONS AND TAXABLE TRANSACTIONS 

(cid:208) 1777/2005 

SECTION 1 

(ARTICLE 4TITLE III OF DIRECTIVE 77/388/EEC2006/112/EC) 

Article 26 

A  European  Economic  Interest  Grouping  (EEIG)  constituted  in  accordance  with  Regulation 
(EEC)  No 2137/85  which  supplies  goods  or  services  for  consideration  to  its  members  or  to 
third  parties  shall  be  a  taxable  person  within  the  meaning  of  Article 49(1)  of  Directive 
77/388/EEC2006/112/EC. 

EN 

17 

   EN 

 
 
 
(cid:216) new 

CHAPTER IV 

TAXABLE TRANSACTIONS 

SECTION 1 

SUPPLY OF GOODS 

(ARTICLES 14 TO 19 OF DIRECTIVE 2006/112/EC) 

Article 7 

1. The following shall be ‘a supply of goods’ within the meaning of Article 14 of Directive 
2006/112/EC: 

(a) 

(b) 

digital  photography  processing,  where  printed  photographs  are  provided  to  the 
customer; 

the  printing  of  a  paper  format  publication,  where  the  supplier  also  provides  the 
materials to the customer. 

(cid:208) 1777/2005 (adapted) 

SECTION 2 

⌦ SUPPLY OF SERVICES ⌫ 

(ARTICLE 6ARTICLES 24 TO 29 OF DIRECTIVE 77/388/EEC2006/112/EC) 

(cid:216) new 

Article 8 

1.  Restaurant  and  catering  services  as  referred  to  in  Directive  2006/112/EC  mean  services 
consisting  of  the  supply  of  prepared  or  unprepared  food  or  beverages  or  both,  for  human 

EN 

18 

   EN 

 
 
 
 
consumption,  accompanied  by  sufficient  support  services  allowing  for  the  immediate 
consumption  thereof.  The  provision  of  food  or  beverages  or  both  is  only  one  component  of 
the whole in which services shall largely predominate. Restaurant services are the supply of 
such  services  on  the  premises  of  the  supplier,  and  catering  services  are  the  supply  of  such 
services off the premises of the supplier. 

2. The supply of prepared or unprepared food or beverages or both, with or without transport 
included,  accompanied  by  no  other  support  services  shall  not  be  considered  restaurant  and 
catering services within the meaning of paragraph 1. 

Article 9 

Where  the  provision  of  food  or  beverages  or  both  is  made  by  one  taxable  person,  and  the 
support  services  allowing  for  the  immediate  consumption  thereof  are  provided  to  the  same 
customer  by  a  different  taxable  person,  each  separate  supply  shall  be  assessed  on  its  own 
merits, provided no evidence of abuse of law exists. 

(cid:208) 1777/2005 (adapted) 

Article 1110 

1.  ‘Electronically  supplied  services’  as  referred  to  in  the  12th indent  of  Article 9(2)(e)  of 
Directive  77/388/EEC  and  in  Annex L  to  that  Directive  77/388/EEC2006/112/EC  shall 
include services which are delivered over the Internet or an electronic network and the nature 
of  which  renders  their  supply  essentially  automated  and  involving  minimal  human 
intervention, and in the absence of information technology is impossible to ensure. 

2.  The  following  services,  in  particular,  shall,  where  delivered  over  the  Internet  or  an 
electronic network, be covered by paragraph 1: 

(cid:208) 1777/2005 

(a) 

(b) 

(c) 

(d) 

the  supply  of  digitised  products  generally,  including  software  and  changes  to  or 
upgrades of software; 

services  providing  or  supporting  a  business  or  personal  presence  on  an  electronic 
network such as a website or a webpage; 

services  automatically  generated  from  a  computer  via  the  Internet  or  an  electronic 
network, in response to specific data input by the recipient; 

the transfer for consideration of the right to put goods or services up for sale on an 
Internet site operating as an online market on which potential buyers make their bids 
by  an  automated  procedure  and  on  which  the  parties  are  notified  of  a  sale  by 
electronic mail automatically generated from a computer; 

EN 

19 

   EN 

 
 
 
(e) 

Internet  Service  Packages  (ISP)  of  information  in  which  the  telecommunications 
component forms an ancillary and subordinate part (i.e. packages going beyond mere 
Internet access and including other elements such as content pages giving access to 
news,  weather  or  travel  reports;  playgrounds;  website  hosting;  access  to  online 
debates etc.); 

(f) 

the services listed in Annex I. 

(cid:208) 1777/2005 (adapted) 

Article 12 

3.  The  following  ⌦ goods  and  services ⌫  ,  in  particular,  shall  not  be  covered  by  the 
12th indent of Article 9(2)(e) of Directive 77/388/EECparagraph 1: 

1.(a) 

2.(b) 

radio  and  television  broadcasting  services  as  referred  to  in  the  11th indent  of 
Article 9(2)(e) of Directive 77/388/EEC; 

telecommunications  services,  within  the  meaning  of  the  10th indent  of  9(2)(e)  of 
Directive 77/388/EEC; 

3. 

supplies of the following goods and services: 

(a)(c) 

goods, where the order and processing is done electronically; 

(b)(d)  CD-ROMs, floppy disks and similar tangible media; 

(c)(e) 

printed matter, such as books, newsletters, newspapers or journals; 

(cid:208) 1777/2005 

(d)(f)  CDs, ⌦ and ⌫ audio cassettes; 

(e)(g) 

video cassettes, ⌦ and ⌫ DVDs; 

(cid:208) 1777/2005 (adapted) 

(f)(h) 

games on a CD-ROM; 

(cid:208) 1777/2005 

(g)(i) 

services  of  professionals  such  as  lawyers  and  financial  consultants,  who  advise 
clients by e-mail; 

EN 

20 

   EN 

 
 
 
 
 
(h)(j) 

teaching services, where the course content is delivered by a teacher over the Internet 
or an electronic network, (namely via a remote link); 

(i)(k) 

offline physical repair services of computer equipment; 

(j)(l) 

offline data warehousing services; 

(k)(m)  advertising services, in particular as in newspapers, on posters and on television; 

(l)(n) 

telephone helpdesk services; 

(m)(o) 

teaching services purely involving correspondence courses, such as postal courses; 

(n)(p) 

conventional auctioneers’ services reliant on direct human intervention, irrespective 
of how bids are made; 

(o)(q) 

telephone  services  with  a  video  component,  otherwise  known  as  videophone 
services; 

(p)(r) 

access to the Internet and World Wide Web; 

(q)(s) 

telephone services provided through the Internet. 

Article 11 

Where  a  taxable  person  only  assembles  the  different  parts  of  a  machine  all  of  which  were 
provided  to  him  by  his  customer,  that  transaction  shall  be  a  supply  of  services  within  the 
meaning of Article 24(1) of Directive 2006/112/EC. 

(cid:216) new 

Article 12 

Work on movable tangible property consisting of the printing of a paper  format publication 
using  the  materials  provided  to  the  supplier  by  the  customer  shall  be  a  supply  of  services 
within the meaning of Article 24(1) of Directive 2006/112/EC. 

(cid:208) 1777/2005 (adapted) 

Article 313 

1. The sale of an option, where such a sale is a transaction ⌦ falling ⌫ within the scope of 
point (5)(f) of Article 13(B)(d)135(1) of Directive 77/388/EEC2006/112/EC, shall be a supply 
of  services  within  the  meaning  of  Article 624(1)  of  that  Directive.  That  supply  of  services 
shall  be  distinct  from  the  underlying  operations  ⌦ transactions ⌫  to  which  the  services 
relate. 

EN 

21 

   EN 

 
 
 
2. Where a taxable person only assembles the different parts of a machine all of which were 
provided  to  him  by  his  customer,  that  transaction  shall  be  a  supply  of  services  within  the 
meaning of Article 6 (1) of Directive 77/388/EEC. 

(cid:208) 1777/2005 

CHAPTER IIIV 

PLACE OF TAXABLE TRANSACTIONS 

(cid:216) new 

SECTION 1 

CONCEPTS 

Article 14 

1.  The  place  where  the  business  of  a  taxable  person  is  established  within  the  meaning  of 
Directive  2006/112/EC  shall  be  the  place  where  essential  decisions  concerning  the  general 
management  of  that  business  are  adopted,  and  where  the  functions  of  its  central 
administration are carried out. This may differ from the place from which the activities of the 
taxable person are carried out. 

2. In determining the place of establishment of a business, the following factors shall be taken 
into account: 

(a) 

(b) 

(c) 

(d) 

the registered office of the business; 

the place of the business’ central administration; 

the place where the business’ management meets; 

the place where general policy is determined. 

3.  In  determining  the  place  of  establishment  of  a  business,  the  following  factors  may  be 
considered: 

(a) 

(b) 

(c) 

the place of residence of the managers of the business; 

the place where general meetings are held; 

the place where administrative and accounting documents are held; 

EN 

22 

   EN 

 
 
 
(d) 

(e) 

the place where the business has its main bank accounts; 

other factors, where relevant. 

4. The mere presence of a postal address may not be taken to be the place of establishment of 
a business of a taxable person unless it meets the requirements of paragraphs 1, 2 and 3. 

Article 15 

1. ‘Fixed establishment’ as referred to in Articles 44 and 45 of Directive 2006/112/EC shall 
be  any  establishment  of  a  minimum  size  with  sufficient  human  and  technical  resources 
permanently present to enable it to: 

(a) 

(b) 

receive and make use of the services supplied to it in the case of services covered by 
Article 44 of Directive 2006/112/EC; 

provide  the  services  it  supplies  in  the  case  of  services  covered  by  Article 45  of 
Directive 2006/112/EC. 

Article 16 

‘Permanent address’ as referred to in Directive 2006/112/EC shall be the address of a natural 
person, whether or not a taxable person, entered into the population or similar register, or, in 
the  absence  of  such  a  register,  the  address  indicated  by  that  person  to  the  relevant  tax 
authorities, unless there is evidence that the address indicated does not reflect reality. 

Article 17 

The place where a person ‘usually resides’ as referred to in Directive 2006/112/EC shall be 
the place where, at the time the service is supplied, a natural person, whether or not a taxable 
person,  usually  lives  as  a  result  of  personal  and  occupational  ties  which  show  close  links 
between  that  person  and  the  place  where  he  is  living.  Where  these  ties  are  not  in  a  single 
country,  or,  where  there  are  no  occupational  ties,  personal  ties  shall  determine  the  place  of 
usual residence. 

EN 

23 

   EN 

 
(cid:208) 1777/2005 (adapted) 

SECTION 12 

⌦ PLACE OF SUPPLY OF GOODS ⌫ 

(ARTICLE 9(1)ARTICLES 31 TO 39 OF DIRECTIVE 77/388/EEC2006/112/EC) 

Article 2218 

Where in the course of a calendar year the threshold applied by a Member State in accordance 
with  Article 28b(B)(2)34 
exceeded, 
Article 28b(B)33 of that Directive shall not modify the place of supplies of goods other than 
products subject to excise duty carried out in the course of the same calendar year which are 
made before the threshold applied by the Member State for the calendar year then current is 
exceeded provided that the supplier ⌦ all of the following conditions are met ⌫ : 

77/388/EEC2006/112/EC 

of  Directive 

is 

(a)  ⌦ the  supplier ⌫  has  not  exercised  the  option  ⌦ provided  for ⌫  under 

Article 28b(B)(3)34(4) of that Directive and; 

(b)  ⌦ the value of his supplies of goods ⌫ did not exceed the threshold in the course 

of the preceding calendar year. 

However,  Article 28b(B)33  of  Directive  77/388/EEC2006/112/EC  shall  modify  the  place  of 
the following supplies to the Member State in which the dispatch or transport ends: 

(a) 

(b) 

(c) 

the supply ⌦ of goods ⌫ by which the threshold applied by the Member State for 
the calendar year then current was exceeded in the course of the same calendar year; 

any subsequent supplies ⌦ of goods ⌫ within that Member State in that calendar 
year; 

supplies ⌦ of goods ⌫ within that Member State in the calendar year following the 
calendar year in which the event referred to in point (a) occurred. 

(cid:216) new 

Article 19 

The section of a passenger transport operation effected within the Community referred to in 
Article 37  of  Directive  2006/112/EC,  shall  be  determined  by  the  journey  of  the  means  of 
transport. 

EN 

24 

   EN 

 
 
 
CHAPTER VIIISECTION 3 

(cid:208) 1777/2005 (adapted) 

TRANSITIONAL MEASURES ⌦ PLACE OF INTRA-COMMUNITY 
ACQUISITIONS OF GOODS ⌫ 

(ARTICLES 28A AND 28B40, 41 AND 42 OF DIRECTIVE 
77/388/EEC2006/112/EC) 

(cid:208) 1777/2005 

Article 2120 

Where  an  intra-Community  acquisition  of  goods  within  the  meaning  of  Article 28a20  of 
Directive 77/388/EEC2006/112/EC has taken place, the Member State in which the dispatch 
or  transport  ends  shall  exercise  its  power  of  taxation  irrespective  of  the  VAT  treatment 
applied to the transaction in the Member State in which the dispatch or transport began. 

Any request by a supplier of goods for a correction in the tax ⌦ VAT ⌫ invoiced by him 
and reported by him to the Member State where the dispatch or transport of the goods began 
shall be treated by that ⌦ Member ⌫ State in accordance with its own domestic rules. 

(cid:208) 1777/2005 (adapted) 

EN 

25 

   EN 

 
 
 
 
SECTION 24 

⌦ PLACE OF SUPPLY OF SERVICES ⌫ 

(ARTICLE 9(2)ARTICLES 43 TO 59 OF DIRECTIVE 77/388/EEC2006/112/EC) 

(cid:216) new 

SUBSECTION 1 

STATUS OF THE CUSTOMER 

Article 21 

1. Where the place of supply of services depends on whether or not the customer is a taxable 
person,  the  status  of  the  customer  shall  be  determined  on  the  basis  of  Title III  of  Directive 
2006/112/EC. 

2.  In  determining  the  status  of  the  customer  established  within  the  Community  as  a  taxable 
person,  the  supplier  shall  be  considered  to  have  acted  in  good  faith  where  he  has  complied 
with all of the following requirements: 

(a) 

(b) 

(c) 

he has established that the customer is a taxable person from the VAT identification 
number  communicated  to  him  by  that  customer,  or  from  any  other  proof  which 
demonstrates  that  the  customer  is  a  taxable  person  or  a  non-taxable  legal  person 
identified for VAT purposes; 

he  has  obtained  confirmation  of  the  validity  of  that  VAT  identification  number,  or 
the other proof given by the customer; 

he  has  carried  out  a  reasonable  level  of  verification  of  the  accuracy  of  the 
information provided by the customer, by existing security measures. 

3. In determining the status of the customer established outside the Community as a taxable 
person, the supplier shall be considered to have acted in good faith where he has obtained a 
certificate,  if  already  available,  issued  by  the  customer’s  competent  tax  authorities  as 
confirmation  that  the  customer  is  engaged  in  economic  activities  in  order  to  enable  him  to 
obtain  a  refund  of  VAT  under  Council  Directive  86/560/EEC12,  or  complied  with  a 
combination of some or all of the following requirements: 

12 

OJ L 326, 21.11.1986, p. 40 

EN 

26 

   EN 

 
 
                                                 
(a) 

(b) 

(c) 

(d) 

he  has  the  VAT  number,  or  a  similar  number  attributed  to  the  customer  by  the 
country of establishment and used to identify businesses; 

he has print outs of any relevant website of the customer’s competent tax authorities 
confirming his taxable status; 

he  has  the  customer’s  order  form  containing  his  business  address  and  trade 
registration number; 

he  has  evidence  from  the  customer’s  website  confirming  that  he  is  conducting  an 
economic activity. 

Article 22 

A  non-taxable  legal  person  who  is  identified  for  VAT  purposes  under  point (b)  of 
Article 214(1)  of  Directive  2006/112/EC  because  his  intra-Community  acquisitions  are 
subject to VAT shall be a taxable person within the meaning of Article 43 of that Directive. 

SUBSECTION 2 

CAPACITY OF THE CUSTOMER 

Article 23 

Where a taxable person, or a non-taxable legal person deemed to be a taxable person, receives 
services for his private use or for that of his staff, or more generally for purposes other than 
those of his business, he shall not, for the purposes of Article 44 of Directive 2006/112/EC, be 
regarded as acting in the capacity of a taxable person. That person shall be regarded as a non-
taxable  person  for  the  purpose  of  applying  the  rules  concerning  the  place  of  supply  of 
services. 

The  nature  of  the  services  provided  shall  be  taken  into  account  when  the  supplier  assesses 
whether his customer is acting as a taxable person. Where the nature of the services is such 
that it leads to doubt as to whether the services are for business use or not, the supplier may be 
required  to  obtain  a  self  declaration  from  the  customer  on  the  intended  use  of  the  acquired 
service. 

Article 24 

The  assessment  of  the  purpose  to  which  each  service  will  be  put,  which  is  necessary  to 
determine the place of supply of that service, shall only take into account the circumstances 
existing at the moment of supply. Any subsequent changes to the use of the service received 
shall not affect the determination of the place of supply, provided no evidence of abuse of law 
exists. 

EN 

27 

   EN 

 
Where  a  single  service  is  intended  for  both  business  and  private  use  of  the  customer,  the 
supply of that service shall fall within the scope of Article 44 of Directive 2006/112/EC. 

Article 25 

SUBSECTION 3 

CUSTOMER LOCATION 

Article 26 

Where,  in  accordance  with  Article 44  of  Directive  2006/112/EC,  a  supply  of  services  is 
taxable at the place where the customer is established, or in the absence of an establishment, 
where he has his permanent address or usually resides, the supplier shall ascertain that place 
based on information from the customer, and verify that information. 

The  information  may  consist  of  the  VAT  identification  number  communicated  by  the 
customer. 

Article 27 

1. Where, in accordance with Article 56(2) of Directive 2006/112/EC, a supply of services is 
taxable at the place where the customer is established, or, in the absence of an establishment, 
where he has his permanent address or usually resides, the supplier shall ascertain that place 
based  on  factual  information  provided  by  the  customer,  and  verify  that  information  by 
existing security measures. 

2.  Where,  in  accordance  with  Articles 58  and  59  of  Directive  2006/112/EC,  a  supply  of 
services  is  taxable  at  the  place  where  the  customer  is  established,  or,  in  the  absence  of  an 
establishment,  where  he  has  his  permanent  address  or  usually  resides,  the  supplier  shall 
ascertain  that  place  based  on  factual  information  provided  by  the  customer,  and  verify  that 
information by existing security measures. 

Article 28 

1. Where a supply of services to a taxable person, or a non-taxable legal person deemed to be 
a  taxable  person,  falls  within  the  scope  of  Article 44  of  Directive  2006/112/EC,  and  that 
taxable  person  is  established,  or  has  his  permanent  address  or  usual  residence  in  more  than 
one country, those services shall be taxable at the place where the customer has established 
his business. 

However, where services are provided to a fixed establishment of the taxable person located 
in a place other than that where the customer has established his business, those services shall 
be taxable at that place. 

EN 

28 

   EN 

 
2. Unless there is evidence of abuse of law, the taxable person receiving the services shall be 
responsible  for  determining  the  place  where  the  services  referred  to  in  paragraph 1  are 
supplied. 

3. In assessing whether the services are actually provided to a fixed establishment, the taxable 
person shall pay particular attention to the following: 

(a) 

(b) 

(c) 

whether  the  contract  or  the  order  form  identify  the  fixed  establishment  as  the 
recipient of the services; 

whether  the  fixed  establishment  is  the  entity  paying  for  the  services  or  the  cost  is 
actually borne by this entity; 

the nature and application of the services where this allows for the identification of 
the particular fixed establishment(s) to which the service is provided. 

4. Where the customer’s VAT identification number mentioned on the invoice is the same as 
that  attributed  by  the  Member  State  of  the  fixed  establishment,  the  services  shall  be 
considered as having been provided to that fixed establishment unless the contrary is proven. 

Article 29 

Where  services  covered  by  Article 44  of  Directive  2006/112/EC  are  supplied  to  a  taxable 
person under a contract covering a number of services used in several places, the supply of 
such services shall be taxable at the place where the customer has established his business. 

However, where any of the services covered by such a contract are actually intended for the 
use of a fixed establishment, the supply of those services shall be taxable at the place where 
that fixed establishment is located. 

Article 30 

1.  Where  services  covered  by  Article 56(2)  Directive  2006/112/EC  are  supplied  to  a  non-
taxable person who is established or, in the absence of  an establishment,  has his permanent 
address or usually resides, in more than one place, priority shall be given to the place that best 
ensures taxation at the place of actual consumption when determining the place of supply of 
those services. 

2. Where services covered by Articles 58 and 59 of Directive 2006/112/EC are supplied to a 
non-taxable  person  who  is  established  or,  in  the  absence  of  an  establishment,  has  his 
permanent  address  or  usually  resides,  in  more  than  one  place,  priority  shall  be  given  to  the 
place that best ensures taxation at the place of actual consumption when determining the place 
of supply of those services. 

EN 

29 

   EN 

 
SUBSECTION 4 

SUPPLY OF SERVICES GOVERNED BY THE GENERAL RULES 

(cid:208) 1777/2005 

Article 731 

Where a body established in a third country assigns television broadcasting rights in respect 
of football matches to taxable persons established in the Community, that transaction shall be 
covered by the first indent of Article 9(2)(e)44 of Directive 77/388/EEC2006/112/EC. 

Article 832 

The  supply  of  services  which  consist  in  applying  for  or  receiving  refunds  under  Council 
Directive 79/1072/EEC2008/9/EC13 shall be covered by the third indent of Article 9(2)(e)44 
of Directive 77/388/EEC2006/112/EC. 

Article 433 

(cid:208) 1777/2005 (adapted) 
(cid:214) new 

Insofar as they constitute a single service, ⌦ the supply of ⌫ services supplied ⌦ made ⌫ 
in  the  framework  of  organising  a  funeral  shall  fall  within  the  scope  of  Article 9(1)44  of 
Directive 77/388/EEC2006/112/EC (cid:214) if supplied to a taxable person acting as such, or a non-
taxable  legal  person  deemed  to  be  a  taxable  person,  and  Article 45  of  that  Directive  if 
supplied to a non-taxable person  . 

Article 634 

The  service  ⌦ supply  of  services ⌫  of  translation  of  texts  shall  be  covered  by 
Article 9(2)(e)44  of  Directive  77/388/EEC2006/112/EC  (cid:214) if  supplied  to  a  taxable  person 
acting as such, or a non-taxable legal person deemed to be a taxable person, and Article 45 of 
that Directive if supplied to a non-taxable person  . 

13 

Eighth  Council  Directive  79/1072/EEC  of  6 December  1979  on  the  harmonisation  of  the  laws  of  the 
Member States relating to turnover taxes — Arrangements for the refund of value added tax to taxable 
persons  not  established  in  the  territory  of  the  country  (OJ L 331,  27.12.1979,  p. 11).  Directive  as  last 
amended by the 2003 Act of Accession.OJ L 44, 20.2.2008, p. 23. 

EN 

30 

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(cid:216) new 

SUBSECTION 5 

SUPPLY OF SERVICES BY INTERMEDIARIES 

Article 35 

Where services other than services of experts and estate agents in connection with immovable 
property, are supplied by intermediaries acting in the name and on behalf of another person, 
that supply shall: 

(a) 

(b) 

fall within the scope of Article 44 of Directive 2006/112/EC if supplied to a taxable 
person; 

fall  within  the  scope  of  Article 46  of  that  Directive,  if  supplied  to  a  non-taxable 
person. 

(cid:208) 1777/2005 (adapted) 

Article 936 

The supply of services of agents ⌦ intermediaries ⌫ as referred to in the seventh indent of 
Article 9(2)(e)46  of  Directive  77/388/EEC2006/112/EC  shall  cover  the  services  of  agents 
⌦ intermediaries ⌫ acting in the name and for the account ⌦ on behalf ⌫ of the recipient 
of the service procured and ⌦ the ⌫ services performed by the agents ⌦ intermediaries ⌫ 
acting in the name and for the account of the provider of the service ⌦ services ⌫ procured. 

SUBSECTION 6 

⌦ SUPPLY OF CULTURAL, ARTISTIC, SPORTING, SCIENTIFIC, EDUCATIONAL, 
ENTERTAINMENT, AND SIMILAR SERVICES, ANCILLARY TRANSPORT SERVICES 
AND VALUATIONS OF AND WORK ON IMMOVEABLE PROPERTY ⌫ 

Article 537 

Except where the goods being assembled become part of immovable property, the place of the 
supply  of  services  specified  in  Article 3(2)  of  this  Regulation  ⌦ to  a  non-taxable  person 
consisting only of the assembly by a taxable person of the different parts of a machine, all of 
which  were  provided  to  him  by  his  customer ⌫  shall  be  established  in  accordance  with 
Article 9(2)(c) or Article 28b(F)54 of Directive 77/388/EEC2006/112/EC. 

EN 

31 

   EN 

 
 
 
(cid:216) new 

SUBSECTION 7 

SUPPLY OF RESTAURANT AND CATERING SERVICES, WHETHER OR NOT ON 
BOARD MEANS OF TRANSPORT 

Article 38 

The section of a passenger transport operation effected within the Community referred to in 
Article 57  of  Directive  2006/112/EC  shall  be  determined  by  the  journey  of  the  means  of 
transport. 

Article 39 

Where restaurant services and catering services are supplied during the section of a passenger 
transport operation effected within the Community, that supply shall be covered by Article 57 
of Directive 2006/112/EC.  

Where restaurant services and catering services are supplied outside such a section but on the 
territory of a Member State, that supply shall be covered by Article 55 of that Directive. 

Article 40 

The place of supply of a single restaurant service or catering service carried out partly during 
a section of a passenger transport operation effected within the Community, and partly outside 
such a section but on the territory of a Member State, shall be determined at the beginning of 
the supply of the service. 

SUBSECTION 8 

HIRING OF MEANS OF TRANSPORT 

Article 41 

1.  ‘Means  of  transport’  as  referred  to  in  Article 56  and  point (g)  of  Article 59  of  Directive 
2006/112/EC  shall  include  vehicles,  whether  motorised  or  not,  and  other  equipment  and 
devices  designed  to  transport  persons  or  objects  from  one  place  to  another,  which  might  be 
pulled, drawn or pushed by vehicles and which are normally designed and actually capable to 
be used for transport. 

2. Paragraph 1 shall apply, in particular, to the following: 

EN 

32 

   EN 

 
 
(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

land  vehicles,  such  as  cars,  motor  cycles,  bicycles,  tricycles  and  caravans  unless 
fixed to the soil; 

trailers and semi-trailers; 

railway wagons; 

vessels; 

aircraft; 

vehicles specifically designed for the transport of sick or injured persons; 

agricultural tractors and other agricultural vehicles; 

vehicles for military, surveillance or civil defence purposes other than for combat; 

mechanically or electronically propelled invalid carriages. 

3. Paragraph 1 shall not apply to containers. 

Article 42 

1.  The  duration  of  the  continuous  possession  or  use  of  a  means  of  transport  which  is  the 
subject of hiring referred to in Article 56 of Directive 2006/112/EC shall be determined on the 
basis  of  the  contractual  agreement  between  the  parties  involved,  including  any  tacit 
agreement. The contract shall serve as a presumption which may however be rebutted by any 
means in fact or law in order to establish the actual duration of the continuous possession or 
use. 

Where  the  period  of  hiring  as  set  out  in  the  contract  is  exceeded  due  to  clearly  established 
circumstances  outside  the  control  of  the  parties  involved,  it  shall  have  no  bearing  on  the 
established duration of the possession or use of the means of transport. 

2.  Where  hiring  of  a  means  of  transport  is  covered  by  two  or  more  consecutive  contracts 
between  the  same  parties  or  where  the  interval  between  contracts  is  two  days  or  less,  the 
duration of the continuous possession or use of the means of transport under a contract shall 
take into account any possession or use of that means of transport provided for under previous 
contracts. 

Provided no abuse of law exists, the duration of the continuous possession or use of a means 
of transport under a contract shall not take into account any possession or use of that means of 
transport provided for under subsequent contracts. 

3. Where the means of transport covered by hiring contracts is not the same, the duration of 
the  continuous  possession  or  use  of  the  means  of  transport  under  each  contract  shall  be 
determined on its own merits, provided no evidence of abuse of law exists. 

EN 

33 

   EN 

 
Article 43 

Where the hiring of a means of transport falls within the scope of Article 56(1) of Directive 
2006/112/EC,  the  place  where  the  means  of  transport  is  actually  put  at  the  disposal  of  the 
customer shall be the place where the means of transport is located when the customer takes 
physical control over it. 

(cid:208) 1777/2005 (adapted) 

SUBSECTION 9 

⌦ SUPPLY OF SERVICES TO NON-TAXABLE PERSONS OUTSIDE THE 
COMMUNITY ⌫ 

The  service  ⌦ supply  of  services ⌫  of  translation  of  texts  shall  be  covered  by 
Article 9(2)(e)59(c) of Directive 77/388/EEC2006/112/EC. 

Article 644 

Trailers  and  semi-trailers,  as  well  as  railway  wagons,  shall  be  forms  of  transport  for  the 
purposes of the eighth indent of Article 9(2)(e) of Directive 77/388/EEC. 

Article 10 

(cid:208) 1777/2005 

CHAPTER IVVI 

TAXABLE AMOUNT 

(ARTICLE 11TITLE VII OF DIRECTIVE 77/388/EEC2006/112/EC) 

Article 1345 

Where a supplier of goods or services, as a condition of accepting payment by credit or debit 
card, requires the customer to pay an amount to himself or another undertaking, and where the 
total  price  payable  by  that  customer  is  unaffected  irrespective  of  how  payment  is  accepted, 
that amount shall constitute an integral part of the taxable amount for the supply of the goods 
or services, under Article 11Articles 73 to 80 of Directive 77/388/EEC2006/112/EC. 

EN 

34 

   EN 

 
 
 
(cid:216) new 

CHAPTER VII 

RATES 

Article 46 

‘Provision  of  holiday  accommodation’  as  referred  to  in  point (12)  of  Annex III  of  Directive 
2006/112/EC  shall  include  the  hiring  out  of  tents,  caravans  fixed  to  the  soil,  and  mobile 
homes by camping sites. 

(cid:208) 1777/2005 

CHAPTER VVIII 

EXEMPTIONS 

SECTION 1 

⌦ EXEMPTIONS FOR CERTAIN ACTIVITIES IN THE PUBLIC 
INTEREST ⌫ 

(cid:208) 1777/2005 (adapted) 

(ARTICLE 13ARTICLES 132, 133 AND 134 OF DIRECTIVE 
77/388/EEC2006/112/EC) 

(cid:208) 1777/2005 

Article 1447 

Vocational  training  or  retraining  services  provided  under  the  conditions  set  out  in 
Article 13(A)(1)(i)point (i)  of  Article 132(1)  of  Directive  77/388/EEC2006/112/EC  shall 
include instruction relating directly to a trade or profession as well as any instruction aimed at 

EN 

35 

   EN 

 
 
 
 
 
acquiring  or  updating  knowledge  for  vocational  purposes.  The  duration  of  a  vocational 
training or retraining course shall be irrelevant for this purpose. 

SECTION 2 

⌦ EXEMPTIONS FOR OTHER ACTIVITIES ⌫ 

(cid:208) 1777/2005 (adapted) 

(ARTICLES 135, 136 AND 137 OF DIRECTIVE 2006/112/EC) 

(cid:208) 1777/2005 

The  exemption  referred 
to 
77/388/EEC2006/112/EC shall not apply to platinum nobles. 

in  point (e)  of  Article 13(B)(d)(4)135(1)  of  Directive 

Article 1548 

(cid:216) new 

SECTION 3 

EXEMPTIONS ON IMPORTATION 

(ARTICLES 143, 144 AND 145 OF DIRECTIVE 2006/112/EC) 

Article 49 

The  exemption  referred  to  in  Article 144  of  Directive  2006/112/EC  shall  apply  to  transport 
services connected with the importation of movable property carried out as part of a change of 
residence. 

EN 

36 

   EN 

 
 
 
 
(cid:208) 1777/2005 

SECTION 24 

⌦ EXEMPTIONS ON EXPORTATION ⌫ 

(cid:208) 1777/2005 (adapted) 

(ARTICLE 15 ARTICLES 146 AND 147 OF DIRECTIVE 77/388/EEC2006/112/EC) 

(cid:208) 1777/2005 

Article 1650 

‘Means  of  transport  for  private  use’  as  referred  to  in  the  first  subparagraphpoint (b)  of 
Article 15(2)146(1)  of  Directive  77/388/EEC2006/112/EC  shall  include  means  of  transport 
used  for  non-business  purposes  by  persons  other  than  natural  persons,  such  as  bodies 
governed  by  public  law  within  the  meaning  of  Article 4(5)13  of  that  Directive  and 
associations. 

Article 1751 

(cid:208) 1777/2005 (adapted) 

In  order  to  determine  whether, ⌦ as  a  condition  for  the  exemption  of  the  supply  of  goods 
carried  in  the  personal  luggage  of  travellers, ⌫  the  threshold  set  by  a  Member  State  in 
accordance with the third indentpoint (c) of the second subparagraph of Article 15(2)147(1) of 
Directive 77/388/EEC2006/112/EC has been exceeded, the calculation shall be based on the 
invoice value. The aggregate value of several goods may be used only if all those goods are 
included on the same invoice issued by the same taxable person supplying goods to the same 
customer. 

EN 

37 

   EN 

 
 
 
 
 
(cid:216) new 

SECTION 5 

EXEMPTIONS RELATING TO CERTAIN TRANSACTIONS TREATED 
AS EXPORTS 

(ARTICLES 151 AND 152 OF DIRECTIVE 2006/112/EC) 

Article 52 

The exemption provided for in Article 151 of Directive 2006/112/EC shall apply to electronic 
services even where these are provided by a taxable person to whom the special scheme for 
electronically supplied services provided for in Articles 357 to 369 of that Directive applies. 

Article 53 

1. A body  which is to be set up as a European Research Infrastructure Consortium (ERIC), 
shall qualify as an international body for the purposes of point (g) of Article 143 and point (b) 
of the first subparagraph of Article 151(1) of Directive 2006/112/EC where it fulfils all of the 
following conditions: 

(a) 

(b) 

(c) 

(d) 

it has a distinct legal personality and full legal capacity; 

it is set up under and is subject to Community law; 

its membership includes Member States and, where appropriate, third countries and 
inter-governmental organisations, but excludes private bodies; 

it has specific and legitimate objectives that are jointly pursued and essentially non-
economic in nature. 

2.  The  exemption  provided  for  in  point (g)  of  Article 143  and  point (b)  of  the  first 
subparagraph of Article 151(1) of Directive 2006/112/EC shall apply to the ERIC where it is 
recognised as an international body by the host Member State. 

The limits and conditions of such an exemption shall be laid down by agreement between the 
members of the ERIC or by a headquarters agreement. Where the goods are not dispatched or 
transported  out  of  the  Member  State  in  which  the  supply  takes  place,  and  in  the  case  of 
services, the exemption may be granted by means of a refund of the VAT in accordance with 
Article 151(2) of Directive 2006/112/EC. 

EN 

38 

   EN 

 
 
Article 54 

1. Where the recipient of the supply of goods or services is established within the Community 
but  not  in  the  Member  State  in  which  the supply takes  place, the common  VAT and excise 
duty  exemption  certificate  set  out  in  Annex II  to  this  Regulation,  shall,  subject  to  the 
explanatory  notes  set  out  in  that  Annex,  be  relied  upon  as  evidence  that  the  recipient  is 
entitled to such exemption under Article 151 of Directive 2006/112/EC. 

2. The certificate referred to in paragraph 1 shall be stamped by the competent authorities of 
the  host  Member  State.  However,  if  the  goods  or  services  are  intended  for  official  use, 
Member States may exempt the recipient from the requirement to have the certificate stamped 
under such conditions as they may lay down. 

Member  States  shall  inform  the  Commission  of  the  service  responsible  for  stamping  the 
certificate and the extent to which they dispense with the requirement to have the certificate 
stamped. The Commission shall inform the other Member States of the information received 
from Member States. 

3. Where direct exemption is applied in the Member State in which the supply takes place, the 
supplier shall obtain the certificate referred to in paragraph 1 of this Article from the recipient 
of  the  goods  or  services  and  retain  it  as  part  of  his  records.  If  the  exemption  is  granted  by 
means of a refund of the VAT only, pursuant to Article 151(2) of Directive 2006/112/EC, the 
certificate shall instead be attached to the request for refund submitted to the Member State 
concerned. 

(cid:208) 1777/2005 

CHAPTER VIIX 

DEDUCTIONS 

(ARTICLE 18TITLE X OF DIRECTIVE 77/388/EEC2006/112/EC) 

Article 1855 

(cid:208) 1777/2005 (adapted) 

Where the importing Member State ⌦ of importation ⌫ has introduced an electronic system 
for  completing  customs  formalities,  the  expression  ‘import  document’  as  referred  to  in 
point (e) of Article 18(1)(b)178 of  Directive 77/388/EEC2006/112/EC shall cover electronic 
versions of such documents, provided that they allow for the exercise of the right of deduction 
to be checked. 

EN 

39 

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(cid:216) new 

CHAPTER X 

OBLIGATIONS OF TAXABLE PERSONS AND CERTAIN NON-
TAXABLE PERSONS 

(TITLE XI OF DIRECTIVE 2006/112/EC) 

Article 56 

1. Where the technical or human resources of a fixed establishment that a taxable person has 
within  the  territory  of  the  Member  State  where  the  VAT  is  due  are  used  by  him  for  the 
fulfilment of the taxable supply of goods or services made within that Member State, whether 
before  or  during  this  fulfilment,  or  where  it  is  envisaged  that  these  resources  may  be  used 
subsequently  by  the  supplier  without  constituting  a  separate  supply  of  goods  or  services, 
whatever  the  extent  of  this  use,  the  establishment  shall  be  regarded  as  intervening  in  that 
supply within the meaning of point (b) of Article 192a of Directive 2006/112/EC. 

2.  Where  the  resources  referred  to  in  paragraph 1  are  only  used  by  the  taxable  person  for 
administrative support tasks such as accounting, invoicing and collection of debt-claims, they 
shall not be regarded as being used for the fulfilment of the supply of goods or services.  

3. If the taxable person issues an invoice under the VAT identification number attributed by 
the  Member  State  of  the  fixed  establishment,  that  fixed  establishment  shall  be  regarded  as 
having intervened in the supply of goods or services made in that Member State unless there 
is proof to the contrary. 

Article 57 

Where  a  taxable  person  has  established  his  place  of  business  within  the  territory  of  the 
Member State where the VAT is due, that taxable person shall not be covered by Article 192a 
of Directive 2006/112/EC even if that place of  business does not intervene in the supply of 
goods or services he makes within that Member State. 

Article 58 

Where a supplier of services satisfies the conditions laid down in Articles 21 and 23 of this 
Regulation, the customer may, in accordance with Article 205 of Directive 2006/112/EC, be 
liable for the VAT due. 

EN 

40 

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(cid:208) 1777/2005 

CHAPTER VIIX 

SPECIAL SCHEMES 

SECTION 1 

⌦ SPECIAL SCHEME FOR INVESTMENT GOLD ⌫ 

(cid:208) 1777/2005 (adapted) 

(ARTICLES 26B AND 26C344 TO 356 OF DIRECTIVE 77/388/EEC2006/112/EC) 

(cid:208) 1777/2005 

Article 1959 

1.  ‘Weights  accepted  by  the  bullion  markets’  as  referred  to  in  point (l)  of  Article 26b(A)(i), 
first paragraph,344(1) of Directive 77/388/EEC2006/112/EC shall at least cover the units and 
the weights traded as set out in Annex IIIII to this Regulation. 

Article 60 

(cid:208) 1777/2005 (adapted) 

2.  For  the  purposes  of  establishing  the  list  ⌦ of  gold  coins ⌫  referred  to  in  the  third 
subparagraph of Article 26b(A)345 of Directive 77/388/EEC2006/112/EC, ‘price’ and ‘open 
market  value’  as  referred 
the  first 
the  fourth 
subparagraphArticle 344(1) shall be the price and open market value on 1 April of each year. 
If 1 April does not fall on a day on which those values are fixed, the values of the next day on 
which they are fixed shall be used. 

indent  of  point (ii)(2)  of 

in 

to 

EN 

41 

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SECTION 2 

⌦ SPECIAL SCHEME FOR NON-ESTABLISHED TAXABLE PERSONS 
SUPPLYING ELECTRONIC SERVICES TO NON-TAXABLE 
PERSONS ⌫ 

(ARTICLES 357 TO 369 OF DIRECTIVE 2006/112/EC) 

Article 2061 

electronically 

scheme  ⌦ for 

1.  Where,  in  the  course  of  a  calendar  quarter,  a  non-established  taxable  person  using  the 
in 
special 
Article 26c(B)Articles 357 to 369 of Directive 77/388/EEC2006/112/EC meets at least one of 
the  criteria  for  exclusion  laid  down  in  Article 26c(B)(4)363,  the  Member  State  of 
identification  shall  exclude  that  non-established  taxable  person  from  the  special  scheme.  In 
such cases the non-established taxable person may subsequently be excluded from the special 
scheme at any time during that quarter. 

services ⌫ 

provided 

supplied 

for 

the  entire  quarter 

In respect of electronic services supplied prior to exclusion but during the calendar quarter in 
which exclusion occurs, the non-established taxable person shall submit a ⌦ VAT ⌫ return 
for 
in  accordance  with  Article 26c(B)(5)364  of  Directive 
77/388/EEC2006/112/EC.  The  requirement  to  submit  this  return  shall  have  no  effect  on  the 
requirement, if any, to register ⌦ be identified for VAT purposes ⌫ under the normal rules 
in a Member State. 

3. Any return period ( ⌦ calendar ⌫ quarter) within the meaning of Article 26c(B)(5)364 of 
Directive 77/388/EEC2006/112/EC shall be a separate return period. 

Article 62 

Article 63 

Once  a  ⌦ VAT ⌫  return  under  Article 26c(B)(5)  of  Directive  77/388/EEC  has  been 
rendered ⌦ submitted as provided for under Article 364 of Directive 2006/112/EC ⌫ , any 
subsequent  changes  to  the  figures  contained  therein  may  be  made  only  by  means  of  an 
amendment to that return and not by an adjustment to a subsequent return. 

Article 64 

4.  Amounts  on  value  added  tax ⌦ VAT ⌫  returns  made  under  the  special  scheme ⌦ for 
electronically  supplied  services ⌫  provided  for  in  Article 26c(B)Articles 357  to  369  of 
Directive  77/388/EEC2006/112/EC  shall  not  be  rounded  up  or  down  to  the  nearest  whole 
monetary  unit.  The  exact  amount  of  value  added  tax  ⌦ VAT ⌫  shall  be  reported  and 
remitted. 

EN 

42 

   EN 

 
Article 65 

2. A Member State of identification which receives a payment in excess of that resulting from 
the  ⌦ VAT ⌫  return  submitted  ⌦ for  electronically  supplied  services ⌫  under 
Article 26c(B)(5)364  of  Directive  77/388/EEC2006/112/EC  shall  reimburse  the  overpaid 
amount directly to the taxable person concerned. 

Where the Member State of identification has received an amount pursuant to a ⌦ VAT ⌫ 
return subsequently found to be incorrect, and that Member State has already distributed that 
amount  among  the  Member  States  of  consumption,  those  Member  States  shall  directly 
reimburse  the  overpayment  to  the  non-established  taxable  person  and  inform  the  Member 
State of identification of the adjustment to be made. 

Article 66 

Amounts  of  value  added  tax  ⌦ VAT ⌫  paid  under  Article 26c(B)(7)367  of  Directive 
77/388/EEC2006/112/EC  shall  be  specific  to  that  ⌦ the  VAT ⌫  return  ⌦ submitted 
pursuant  to  Article 364  of  that  Directive ⌫  .  Any  subsequent  amendments  to  the  amounts 
paid  may  be  effected  only  by  reference  to  that  return  and  may  not  be  allocated  to  another 
return, or adjusted on a subsequent return. 

(cid:208) 1777/2005 

CHAPTER IXXII 

FINAL PROVISIONS 

(cid:208)  

Article 67 

Regulation (EC) No 1777/2005 is repealed. 

References  made  to  the  repealed  Regulation  shall  be  construed  as  references  to  this 
Regulation and shall be read in accordance with the correlation table in Annex IV. 

(cid:208) 1777/2005 (adapted) 
(cid:214) new 

Article 2368 

This Regulation shall enter into force on 1 July 2006 ⌦ 1 January 2010 ⌫ . 

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Article 13  (cid:214) Article 54  and  Annex II   shall  be  applicable  ⌦ apply ⌫  from  1 January 
2006 (cid:214) 1 April 2010  . 

Article 27(1) and Article 30(1) shall apply from 1 January 2013.  

(cid:216) new 

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

(cid:208) 1777/2005 

Done at Brussels,  

For the Council 
The President 

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(cid:208) 1777/2005 

ANNEX I 

Article 1110 of this Regulation 

1.(1) 

Item 1 of Annex LII to Directive 77/388/EEC2006/112/EC: 

(a)  Website hosting and webpage hosting; 

(b)  Aautomated, online and distance maintenance of programmes; 

(c)  Rremote systems administration; 

(d)  Oonline  data  warehousing  where  specific  data  is  stored  and  retrieved 

electronically; 

(e)  Oonline supply of on-demand disc space. 

2.(2) 

Item 2 of Annex LII to Directive 77/388/EEC2006/112/EC: 

(a)  Accessing  or  downloading  software  (including  procurement/accountancy 

programmes and anti-virus software) plus updates; 

(b)  Ssoftware 

to  block  banner  adverts  showing,  otherwise  known  as 

Bannerblockers; 

(c)  Ddownload drivers, such as software that interfaces computers with peripheral 

equipment (such as printers); 

(d)  Oonline automated installation of filters on websites; 

(e)  Oonline automated installation of firewalls. 

3.(3) 

Item 3 of Annex LII to Directive 77/388/EEC2006/112/EC: 

(a)  Accessing or downloading desktop themes; 

(b)  Aaccessing or downloading photographic or pictorial images or screensavers; 

(c)  Tthe digitised content of books and other electronic publications; 

(d)  Ssubscription to online newspapers and journals; 

(e)  Wweblogs and website statistics; 

(f)  Oonline news, traffic information and weather reports; 

(g)  Oonline  information  generated  automatically  by  software  from  specific  data 
input by the customer, such as legal and financial data, (in particular such data 
as continually updated stock market data, in real time); 

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(h)  Tthe  provision  of  advertising  space  including  banner  ads  on  a  website/web 

page; 

(i)  Uuse of search engines and Internet directories. 

4.(4) 

Item 4 of Annex LII to Directive 77/388/EEC2006/112/EC: 

(a)  Accessing or downloading of music on to computers and mobile phones; 

(b)  Aaccessing or downloading of jingles, excerpts, ringtones, or other sounds; 

(c)  Aaccessing or downloading of films; 

(d)  Ddownloading of music on to computers and mobile phones; 

(e)  Aaccessing  automated  online  games  which  are  dependent  on  the  Internet,  or 
other  similar  electronic  networks,  where  players  are  geographically  remote 
from one another. 

5.(5) 

Item 5 of Annex LII to Directive 77/388/EEC2006/112/EC: 

(a)  Automated  distance  teaching  dependent  on  the  Internet  or  similar  electronic 
network  to  function  and  the  supply  of  which  requires  limited  or  no  human 
intervention, including virtual classrooms, except where the Internet or similar 
electronic  network  is  used  as  a  tool  simply  for  communication  between  the 
teacher and student; 

(b)  Wworkbooks  completed  by  pupils  online  and  marked  automatically,  without 

human intervention. 

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(cid:216) new 

ANNEX II 

Article 54 of this Regulation 

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VAT AND EXCISE DUTY EXEMPTION CERTIFICATE 
(Directive 2006/112/EC - Article 151 – and Directive 2008/118/EC - Article 13) 

EUROPEAN COMMUNITY 

Serial No (optional): 

1. ELIGIBLE INSTITUTION/INDIVIDUAL 

Designation/name 

Street and No 

Postal code, place 

(Host) Member State 

2. COMPETENT AUTHORITY FOR ISSUING THE STAMP (name, address and telephone number) 

3. DECLARATION BY THE ELIGIBLE INSTITUTION OR PERSON 

The eligible institution or individual(1) hereby declares 

(a) that the goods or services set out in box 5 are intended(2) 

□ For the official use of 

□ For the personal use of 

□ foreign diplomatic mission 

□ a member of a foreign diplomatic mission 

□ foreign consular representation 

□ a member of a foreign consular representation 

□ an international organisation 

□ a staff member of an international organisation 

□ an armed forces of a State being a party to the North 
Atlantic Treaty (NATO force) 

□ an armed forces of the United Kingdom stationed in 
the island of Cyprus 

(designation of the institution) (see box 4) 

(b) that the goods or services described at box 5 comply with the conditions and limitations applicable to the exemption in the host Member 
State mentioned in box 1, and 

(c) that the information above is furnished in good faith. 

The eligible institution or individual hereby undertakes to pay to the Member State from which the goods were dispatched or from which the 
goods or services were supplied, the VAT or excise duty which would be due if the goods or services did not comply with the conditions of 
exemption, or if the goods or services were not used in the manner intended. 

Name and status of signatory 

Place, date 

Signature 

4. STAMP OF THE INSTITUTION (in case of exemption for personal use) 

Place, date 

Stamp 

Signature 

Name and status of signatory 

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5. DESCRIPTION OF THE GOODS AND/OR SERVICES, FOR WHICH THE EXEMPTION FROM VAT OR EXCISE DUTY 
IS REQUESTED 

A. Information concerning the supplier/authorised warehousekeeper 

(1) Name and address: 

(2) Member State 

(3) VAT/excise number 

B. Information concerning the goods or services: 

No 

Detailed description of 
the goods or services(3) 
(or reference to the 
attached order form) 

Quantity or number 

Value excluding VAT 
and excise duty 

Currency 

Value per unit 

Total value 

Total amount 

6. CERTIFICATION BY THE COMPETENT AUTHORITIES OF THE HOST MEMBER STATE 

The consignment/supply of goods or services described in box 5 meets: 

□ totally 

□ up to a quantity of 

(number)(4) 

the conditions for exemption from VAT and excise duty 

Place, date 

Stamp 

Signature 

7. PERMISSION TO DISPENSE WITH THE STAMP UNDER BOX 6 (only in case of exemption for official use) 

Name and status of signatory 

By letter No: 

Dated: 

Designation of eligible institution: 

Competent authority in host Member State: 

Name and status of signatory 

Place, date 

Stamp 

Signature 

(1) 
(2) 
(3) 
(4) 

Delete as appropriate. 
Place a cross in the appropriate box. 
Delete space not used. This obligation also applies if order forms are attached. 
Goods or services not eligible should be deleted in box 5 or on the attached order form. 

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Explanatory notes 

1.  For  the  supplier  and/or  the  authorised  warehousekeeper,  this  certificate  serves  as  a  supporting  document  for  the  tax  exemption  of  the 
supplies  of  goods  and  services  or  the  consignments  of  goods  to  the  eligible  institutions/individuals  referred  to  in  Article 151  of  Directive 
2006/112/EC and Article 13 of Directive 2008/118/EC. Accordingly, one certificate shall be drawn up for each supplier/warehousekeeper. 
Moreover,  the  supplier/warehousekeeper  is  required  to  keep  this  certificate  as  part  of  his  records  in  accordance  with  the  legal  provisions 
applicable in his Member State. 

2. (a) The general specification of the paper to be used is as laid down in the Official Journal of the European Communities No C 164 of 
1.7.1989, p. 3. 

The paper is to be white for all copies and should be 210 millimetres by 297 millimetres with а maximum tolerance of 5 millimetres less or 
8 millimetres more with regard to their length. 

For an exemption from excise duly the exemption certificate shall be drawn up in duplicate: 

– one copy to be kept by the consignor; 

– one copy to accompany the administrative accompanying document. 

(b) Any unused space in box 5.B. is to be crossed out so that nothing can be added. 

(c) The document must be completed legibly and in a manner that makes entries indelible. No erasures or overwriting are permitted. It shall 
be completed in a language recognised by the host Member Slate. 

(d) If the description of the goods or services (box 5.B of the certificate) refers to a purchase order form drawn up in a language other than a 
language recognised by the host Member Stale, a translation must be attached by the eligible institution/individual. 

(e)  On  the  other  hand,  if  the  certificate  is  drawn  up  in  a  language  other  than  a  language  recognised  by  the  Member  State  of  the 
supplier/warehousekeeper,  a  translation  of  the  information  concerning  the  goods  and  services  in  box 5.B  must  be  attached  by  the  eligible 
institution/individual. 

(f) A recognised language means one of the languages officially in use in the Member Stale or any other official language of the Community 
which the Member State declares can be used for this purpose. 

3. By its declaration in box 3 of the certificate, the eligible institution/individual provides the information necessary for the evaluation of the 
request for exemption in the host Member State. 

4. By its declaration in box 4 of the certificate, the institution confirms the details in boxes 1 and 3(a) of the document and certifies that the 
eligible individual is a staff member of the institution. 

5. (a) The reference to the purchase order form (box 5.B of the certificate) must contain at least the date and order number. The order form 
should contain all the elements that figure at box 5 of the certificate. If the certificate has to be stamped by the competent authority of the 
host Member State, the order form shall also be stamped. 

(b)  The  indication  of  the  excise  No  as  defined  in  Article 22(2)(a)  of  Council  Regulation  (EC)  No 2073/2004  of  16 November  2004  on 
administrative cooperation in the field of excise duties is optional; the VAT identification No must be indicated. 

(c)  The  currencies  should  be  indicated  by  means  of  a  three  letter  code  in  conformity  with  the  ISO  code 4217  standard  established  by  the 
international Standards Organisation(1). 

6.  The  abovementioned  declaration  by  the  eligible  institution/individual;  shall  be  authenticated  at  box 6  by  the  stamp  of  the  competent 
authority of the host Member State. That authority can  make its approval dependent on the agreement of another authority in its Member 
State. It is up to the competent tax authority to obtain such an agreement. 

7. To simplify the procedure, the competent authority can dispense with the obligation on the eligible institution to ask for the stamp in the 
case of exemption for official use. The eligible institution should mention this dispensation at box 7 of the certificate. 

________ 

(1) 

As  an  indication,  some  codes  relating  to  currencies  currently  used:  EUR  (euro),  BGN  (leva),  CZK  (Czech  koruny),  DKK 
(Danish  kroner),  EEK  (kroonid),  GBP  (Pound  sterling),  HUF  (forint),  LTL  (litai),  PLN  (zloty),  RON  (Romanian  lei),  SEK 
(Swedish kronor), USD (United States dollar). 

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(cid:208) 1777/2005 

ANNEX IIIII 

Article 1959 of this Regulation 

Unit 

Weights traded 

Kg 

Gram 

12,5/1 

500/250/100/50/20/10/5/2,5/
2 

Ounce (1 oz = 31,1035 
g) 

100/10/5/1/1/2/1/4 

Tael (1 tael = 1,193 
oz.)14 

10/5/1 

Tola (10 tolas = 3,75 
oz.)15 

10 

(cid:207) 

14 

15 

Tael = a traditional Chinese unit of weight. The nominal fineness of a Hong Kong tael bar is 990 but in 
Taiwan 5 and 10 tael bars can be 999,9 fineness. 
Tola = a traditional Indian unit of weight for gold. The most popular sized bar is 10 tola, 999 fineness. 

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ANNEX IV 

Correlation Table 

Regulation (EC) No 1777/2005 

This Regulation 

Chapter I 

Article 1 

Chapter II 

Section 1 

Article 2 

Section 2 

Article 3(1) 

Article 3(2) 

Chapter III 

Section 1 

Article 4 

Section 2 

Article 5 

Article 6 

Article 7 

Article 8 

Article 9 

Article 10 

Article 11(1)-(2) 

Article 12 

Chapter IV 

Article 13 

Chapter V 

Section 1 

Chapter I 

Article 1 

Chapter III 

- 

Article 6 

Section 2 of Chapter IV 

Article 13 

Article 11 

Chapter V 

Section 2 of Chapter V 

Article 33 

Section 4 of Chapter V 

Article 37 

Articles 34 and 44 

Article 31 

Article 32 

Article 36 

Article 41(2)(b)-(c) 

Article 10(1)-(2) 

Article 10(3) 

Chapter VI 

Article 45 

Chapter VIII 

Section 1 of Chapter VIII 

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Article 14 

Article 15 

Section 2 

Article 16 

Article 17 

Chapter VI 

Article 18 

Chapter VII 

Article 19(1) 

Article 19(2) 

Article 20(1) 

Article 20(2) 

Article 20(3), first subparagraph 

Article 20(3), second subparagraph 

Article 20(3), third subparagraph 

Article 20(4) 

Chapter VIII 

Article 21 

Article 22 

Chapter IX 

Article 23 

Annex I 

Annex II 

Article 47 

Article 48 

Section 2 of Chapter VIII 

Article 50 

Article 51 

Chapter IX 

Article 55 

Chapter X 

Article 59 

Article 60 

Article 61 

Article 65 

Article 62 

Article 63 

Article 66 

Article 64 

Section 3 of Chapter V 

Article 20 

Article 18 

Chapter XII 

Article 68 

Annex I 

Annex III 

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