Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC and Directive 2009/132/EC as regards certain value added tax obligations for supplies of services and distance sales of goods
Date: 2016-12-01
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: VAT, broadcasting, electronic commerce, import (EU), provision of services, tax exemption, tax harmonisation, telecommunications, third country

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   EUROPEAN COMMISSION  Brussels, 1.12.2016  COM(2016) 757 final 2016/0370 (CNS)   Modernising VAT for cross-border B2C e-commerce Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC and Directive 2009/132/EC as regards certain value added tax obligations for supplies of services and distance sales of goods {SWD(2016) 379 final} {SWD(2016) 382 final}  
 
EXPLANATORY MEMORANDUM 

1. 

•  

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The European Commission is committed to ensuring the free movement of goods and services 
and  to  ensuring  that  “individuals  and  businesses  can  seamlessly  access  and  exercise  online 
activities under conditions of fair competition”. In terms of the current VAT rules, the May 
2015  Communication  'A  Digital  Single  Market  Strategy  for  Europe'1  and  the  April  2016 
Communication on an action plan on VAT: 'Towards a single EU VAT area - Time to decide'2 
have placed a high priority to overcoming barriers to cross-border e-commerce arising from 
onerous VAT obligations as well as an inherent lack of neutrality which harms EU business. 
The proposals will modernise the current VAT rules that apply to e-commerce activities and 
help making VAT future-proof. 

There are in essence three reasons to act: 

 

 

 

First, the complexity of VAT obligations  has  consistently been  identified as  one of 
the  key  reasons  why  a  business  will  not  engage  in  cross-border  e-commerce,  and 
therefore it means that the single market cannot be accessed by many businesses. It 
has been estimated that the costs of complying with VAT obligations are on average 
EUR 8 000 annually for each Member State which a business supplies to. This is a 
significant cost for business, in particular SMEs.  

Second, the current system is not neutral as EU businesses are at a clear disadvantage 
to  non-EU  businesses  which  can  legitimately  and  through  high  levels  of  non-
compliance  make  VAT-free  supplies  into  the  EU.  Given  that  VAT  rates  can  be  as 
high as 27%, there is a substantial distortion in favour of non-EU business if VAT is 
not applied. 

Third, the complexity of the existing system as well as the current exemption for the 
importation  of  small  consignments  means  that  Member  States  lose  valuable  tax 
revenues.  It  is  estimated  that  between  VAT  foregone  and  non-compliance  from 
cross-border e-commerce such losses are currently as high as EUR 5 billion annually.  

In preparing this proposal the Commission as part of the Better Regulation agenda carried out 
a regulatory fitness check of the existing Mini One Stop Shop (MOSS) which applies to B2C 
supplies  of  electronic  services  as  well  as  the  2015  changes  to  the  place  of  supply  rules  for 
such services. The proposal takes due account of this assessment. In particular, the proposal 
will address shortcomings and barriers faced by SMEs and micro-businesses. In quantitative 
terms,  the  introduction  of  an  intra-EU  cross-border  threshold  in  2018  will  take  6 500 
businesses  out  of  the  current  MOSS  system  leading  to  a  potential  cost  saving  for  these 
businesses of EUR 13 million. The introduction in 2018 of simplified evidence requirements 
will  benefit  an  additional  1 000  businesses.  The  threshold  which  will  also  apply  to  goods 
when the MOSS is extended in 2021 will benefit 430 000 businesses with potential savings to 
these businesses of up to EUR 860 million. 

The  REFIT  aspect  of  the  initiative  also  relates  to  the  main  objectives  of  the  new  initiative, 
which  is  "minimising  burdens  attached  to  cross-border  e-commerce  arising  from  different 
VAT regimes". In terms of deliverables, the proposal is expected to reduce VAT compliance 
costs for businesses by EUR 2.3 billion a year from 2021 while at the same time increasing 

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COM(2015) 192 final 
COM(2016) 148 final 

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VAT  revenues  for  Member  States  by  EUR 7 billion.  Further, the  extension  of the  MOSS  in 
2021 also takes on board certain shortcomings identified under the REFIT assessment of the 
2015  initiative  such  as  the  need  for  home  country  rules  in  terms  of  invoicing  requirements, 
coordination of audits,  communications with  taxpayers and indeed  including  a threshold  for 
suppliers of goods as well as services.  

• 

Consistency with existing policy provisions in the policy area 

The general objectives of the proposal are the smooth functioning of the internal market, the 
competitiveness  of  EU  business  and  the  need  to  ensure  effective  taxation  of  the  digital 
economy.  The  proposal  is  consistent  with  the  future  application  of  the  destination  principle 
for VAT as set out in the recent VAT Action plan supported by Council3.  

In addition to the VAT Action Plan, the proposal has been identified as a key initiative in the 
Digital Single Market Strategy4 ('DSM Strategy') as well as the Single Market strategy5 and 
the E-Government Action Plan6. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The proposal is based on Article 113 of the Treaty on the Functioning of the European Union 
(TFEU).  This  article  provides  for  the  Council,  acting  unanimously  in  accordance  with  a 
special legislative procedure and after consulting the European Parliament and the Economic 
and Social Committee, to adopt provisions for the harmonisation of Member States' rules in 
the area of indirect taxation. 

• 

Subsidiarity  

The proposal is consistent with the principle of subsidiarity as the main problems which have 
been identified (distorting effects, high administrative costs, etc.) are triggered by the rules of 
the existing VAT Directive and associated acts. Given that VAT is  a tax harmonised at EU 
level, Member States cannot by themselves set different rules and therefore any initiative to 
modernise  VAT  for  cross-border  e-commerce  requires  a  proposal  by  the  Commission  to 
amend the VAT Directive. The proposal will clearly offer value over and above what can be 
achieved  at  Member  State  level  given  that  the  principle  simplification  is  the  MOSS  system 
applying in all Member States and available to business to simply and efficiently account for 
tax  due  to  all  Member  States.  A  soft  law  approach,  such  as  Member  States  voluntarily 
applying a MOSS is not feasible as it is an exception to the normal rules and thus requires a 
coordinated approach underpinned by IT infrastructure. 

• 

Proportionality 

The proposal is consistent with the principle of proportionality i.e. it does not go beyond what 
is necessary to meet the objectives of the Treaties in particular the smooth functioning of the 
single market. As with the subsidiarity test, it is not possible for Member States to address the 
problems  and  problem  drivers  without  a  proposal  to  amend  the  VAT  Directive.  The 
proportionality  of  the  proposal  has  a  number  of  important  aspects.  Firstly,  the  two  stage 
implementation  of  the  proposal  recognises  that  certain  measures  such  as  the  threshold  and 
simplified  obligations  can  be  introduced  in  2018  without  the  need  for  any  IT  development. 
However, the implementation date of 2021 for the main elements of the proposal recognises 

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http://www.consilium.europa.eu/en/press/press-releases/2016/05/25-conclusions-vat-action-plan/  
COM(2015) 192 final. 
COM(2015) 550 final. 
COM(2016) 179 final. 

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that Member States will require a suitable period of time to ensure that the IT systems can be 
developed  and  tested.  This  also  enables  further  consultation  with  business.  Secondly,  it  is 
recognised  that  while  there  will  be  challenges  for  customs  administrations  given  that  the 
removal of the VAT exemption for the importation of small increases will lead to a significant 
increase in the number of parcels where VAT must be collected, this will be mitigated by the 
simplification  offered  through  the  MOSS  import  scheme  for  all  parcels  up  to  EUR 150  in 
value,  the  increase  in  VAT  revenues  for  Member  States  of  EUR 7 billion  annually  and  the 
level playing field for EU business who are currently at a disadvantage. 

• 

Choice of the instrument 

The  proposal  requires  amending  four  legal  acts.  The  primary  amendments  will  be  made  to 
Directive 2006/112/EC on the common system of value added tax7 (the 'VAT Directive') and 
Regulation (EU) 904/2010 on administrative cooperation and combating fraud in the field of 
value  added  tax8.  Relatively  minor  amendments  will  be  made  to  Directive  2009/132/EC 
determining  the  scope  of  Article  143(b)  and  (c)  of  Directive  2006/112/EC  as  regards 
exemption  from  value  added  tax  on  the  final  importation  of  certain  goods9  and  Regulation 
(EU)  282/2011  laying  down  implementing  measures  for  Directive  2006/112/EC  on  the 
common system of value added tax10. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

The  consultation  strategy  had  two  main  purposes.  The  first  was  to  assist  with  the  analysis 
under REFIT of the implementation of the 2015 changes to the place of supply rules and the 
MOSS,  and  the  second  was  to  get  the  views  of  stakeholders  on  the  Commission’s 
commitment  in  the  Digital  Single  Market  Strategy  to  modernise  the  VAT  framework  for 
cross-border e-commerce.  

There were four main aspects to the consultation process: 

(1) 

(2) 

(3) 

(4) 

Consultations and stakeholder workshops undertaken by Deloitte as part of the Study 
on  'Options  for  the  modernisation  of  cross-border  e-commerce'  (February  2015  – 
July 2016); 

Fiscalis seminar (September 2015, Dublin) with Member States and business; 

Targeted consultation with key stakeholders; 
Open public consultation11. 

The  impact  of  the  various  options  on  SMEs  has  been  a  central  objective  of  this  impact 
assessment.  Specific  measures  have  been  undertaken  to  understand  and  address  the  issues 
faced  by  SMEs  which  have  informed  this  assessment  both  in  quantitative  and  qualitative 
terms. In this respect, an online survey was specifically directed at small and micro-business 

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OJ L 347, 11.12.2006, p. 1. 
OJ L 268, 12.10.2010, p. 1. 
OJ L 292, 10.11.2009, p. 5. 
OJ L 77, 23.3.2011, p. 1. 

http://ec.europa.eu/taxation_customs/common/consultations/tax/2015_vat_cross_border_ecommerce_e

n.htm. 
The Commission received approximately 370 submissions. All public submissions are available on the DG 
TAXUD website: http://ec.europa.eu/taxation_customs/resources/documents/common/consultations/tax/public-
consultation-results_en.xlsx 

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and their representative groups and the Commission ensured that SMEs were represented at 
the stakeholder conference. 

Further  details  can  be  found  in  Annex  2  'Synopsis  report  stakeholder  consultation'  of  the 
Impact Assessment. 

The concerns raised during the consultation process by businesses and business associations, 
including small and medium enterprises, mainly relate to the 2015 place of supply rules and 
application of the MOSS for the services concerned (need of a threshold, use home country 
rules  for  certain  specific  VAT  obligations  like  invoicing  and  record  keeping,  audit 
coordination, etc.) and are largely reflected by this proposal.  

• 

Collection and use of expertise 

The  Commission  used  the  analysis  carried  out  by  Deloitte  for  the  Study  'VAT  Aspects  of 
cross-border e-commerce – Options for modernising' (February 2015 – July 2016), Lot 1, Lot 
2  and  Lot  3.  The  Study  is  published  on  the  Commission's  website  at  the  following  page: 
http://ec.europa.eu/taxation_customs/taxation/vat/key_documents/reports_published/index_en
.htm. 

The  aim  of  the  study  was  threefold.  Firstly,  to  provide  an  economic  analysis  of  the  VAT 
aspects of e-commerce under the current VAT rules (Lot 1). Secondly, to assess the impact of 
options  under  consideration  for  the  modernisation  of  VAT  aspects  of  cross-border  e-
commerce (Lot 2). Thirdly, to assess the implementation of the changes to the place of supply 
rules  for  telecommunications,  broadcasting  and  electronic  services  (hereafter  'electronic 
services') and the associated MOSS which came into effect in January 2015 (Lot 3).  

In  addition,  two  meetings  were  organised  with  experts.  A  Fiscalis  2020  seminar  was 
organised  in  September  2015  in  Ireland  where  both  VAT  experts  from  Member  States'  and 
business  participated.  The  main  purpose  of  the  Seminar  was  to  assess  the  2015  place  of 
supply rules and the MOSS, as well as the options for modernisation of the VAT for cross-
border e-commerce which were included in the inception impact assessment for the proposal. 
A second Fiscalis 2020 and Customs 2020 workshop was organised in April 2016 in Sweden 
where  tax  and  customs  experts  of  the  Member  States  participated  mainly  to  look  into  the 
import  side  of  the  proposal  (removal  of  the  VAT  exemption  for  the  importation  of  small 
consignments and extension of MOSS to importation of small consignments up to EUR 150).  

Both meetings had a good outcome and the recommendations received during these meetings 
were further considered in this proposal.  

• 

Impact assessment 

The Impact Assessment for the proposal was considered by the Regulatory Scrutiny Board on 
22 June 2016. The Board gave a positive opinion to the proposal with some recommendations 
that  have  been  taken  on  board.  The  opinion  of  the  Board  and  the  recommendations  are 
included in Annex 1 to the Staff Working Document for the impact assessment accompanying 
this  proposal.  The  executive  summary  sheet 
the  following  page: 
https://ec.europa.eu/taxation_customs/business/vat/digital-single-market-modernising-vat-
cross-border-ecommerce_en. 

is  available  at 

• 

Regulatory fitness and simplification 

This proposal is included under the REFIT programme, and in this respect an assessment of 
the  implementation  of  the  2015  changes  to  the  place  of  supply  rules  for  electronic  services 
and  the  implementation  of  the  MOSS  system  for  these  services  was  carried  out.  This 

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assessment  shows  that  the  MOSS  has  saved  businesses  EUR 500 million  compared  to  the 
alternative  of  direct  registration  and  payment  –  on  average  EUR 41 000  per  business.  This 
represents a 95% reduction in costs compared to the alternative of direct registration.  

The  assessment  of  the  MOSS  has  also  been  very  useful  in  ensuring  that  the  new  initiative 
recognises  the  positives  and  addresses  any  shortcomings  of  the  2015  changes.  For  instance, 
this  proposal  includes  the  introduction  in  2018  of  a  cross-border  threshold  applying  to 
services  covered  by  the 2015  changes  as  well as  a  relaxation  on  the  need  for  two  pieces  of 
evidence for suppliers of electronics service who have less than EUR 100 000 turnover (the so 
called soft-landing).  

4. 

BUDGETARY IMPLICATIONS 

The  proposal  is  estimated  to  increase  VAT  revenues  for  Member  States  by  2021  by 
EUR 7 billion  annually.  It  is  estimated  that  the  proposal  will  reduce  administration  burdens 
for business by EUR 2.3 billion annually.  

The  cost  implications  for  Member  States  should  be  limited  given  that  the  extension  of  the 
MOSS is an evolution of an existing IT system.  

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

Implementation will be overseen by the Standing Committee on Administrative Cooperation 
(SCAC). As with the 2015 changes, the SCAC will be supported by the Standing Committee 
on Information Technology (SCIT).  

• 

Overview of the main provisions in the proposal 

The main provisions of the proposal are: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

the  extension  of  the  existing  MOSS  to  intra-Community  distance  sales  of  tangible 
goods and services other than electronic services as well as to distance sales of goods 
from third countries; 

the  introduction  of  a  simplified  arrangements  for  global  declaration  and  payment  of 
import VAT for importers  of goods  destined  for final  consumer  where  VAT has not 
been paid through the MOSS system;  

the  removal  of  the  existing  intra-Community  distance  sales  thresholds  which  are  a 
cause of distortions in the single market;  

the removal of the existing VAT exemption for the importation of small consignments 
from suppliers in third countries which disadvantages EU sellers; 

the  introduction  of  common  Community-wide  simplification  measure  including  a 
VAT threshold for intra-Community distance sales of goods and electronic services to 
help  small  start-up  e-commerce  businesses  as  well  as  simplified  rules  for  the 
identification of customers; 

allowing  for  EU  sellers  to  apply  home  country  rules  in  areas  such  as  invoicing  and 
record keeping; and 

greater coordination between Member States when auditing of cross-border businesses 
who use the VAT system to ensure high compliance rates. 

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• 

Detailed explanation of the specific provisions of the proposal 

Article 1 – amendments to the VAT Directive – provisions with effect from 1 January 2018 

Point  1  of  Article  1  proposes  a  clarification  to  Article  28  of  the  VAT  Directive,  reflecting 
discussions in the VAT Committee. The words 'including cases where a telecommunications 
network, an interface or a portal is used for that purpose' are added to the provision, so as to 
clarify  that  this  Article  also  applies  where  an  electronic  service  is  provided  through  an 
intermediary or a third party who is acting in his own name but on behalf of another person 
and who is using an electronic interface to make the supply. 

Points 2 to 7 of Article 1 propose a number of improvements to the current special schemes 
for  the  taxation  of  electronic  services  supplied  by  non-established  taxable  persons  to  non-
taxable  persons  laid  down  in  Chapter  6  of  Title  XII  of  the  VAT  Directive.  Those 
improvements,  which  do  not  require  any  changes  to  the  electronic  registration  and  payment 
system (the MOSS) allowing businesses supplying such services to register and to declare and 
pay VAT in a single Member State on all supplies to customers established in the Community 
(the  'Mini-One-Stop-Shop'  or  'MOSS')  and  which  result  from  the  evaluation  of  the  MOSS 
including trade consultation, are the following: 

(1) 

(2) 

(3) 

Point  2:  paragraphs  2  to  5  are  added  to  Article  58  of  the  VAT  Directive  so  as  to 
introduce a threshold of EUR 10 000 below which the place of supply of services that 
may  be  covered  by  the  intra-Community  special  scheme  for  electronic  services 
remains  in  the  Member  State  of  the  supplier.  This  should  however  be  optional  for 
taxable persons so as to allow them to use the MOSS anyhow, e.g. if during a calendar 
year their turnover is exceptionally below the threshold. 

Point 3: Article 219a of the VAT Directive is amended to provide that the invoicing 
rules of the Member State of identification apply. As a consequence, suppliers should 
respect the invoicing rules of a single Member State instead of, as is the case today, of 
each Member State of destination to which supplies are made. 

Points 4 and 5: taxable persons not established in the Community but having a VAT 
registration  in  a  Member  State  (e.g.  because  they  carry  out  occasional  transactions 
subject to VAT in that Member State) can use neither the special scheme for taxable 
persons  not  established  in  the  Community  (the  'non-Union  scheme'),  nor  the  special 
scheme  for  taxable  persons  established  in  the  Community  (the  'Union  scheme'). 
Hence,  they  cannot  currently  benefit  from  the  simplifications  offered  by  the  MOSS 
and  have  to  register  for  VAT  in  each  Member  State to  which  they  supply  electronic 
services.  To  allow  such  taxable  persons  to  use  the  non-Union  scheme,  the  proposal 
deletes  the  words  'and  who  is  not  otherwise  required  to  be  identified  for  VAT 
purposes' in the definition of 'taxable person not established within the Community' in 
Article 358a of the VAT Directive and adapts Article 361(1)(e) of the VAT Directive 
accordingly. 

(4) 

Points  6  and  7:  Articles  369(2)  and  369k(2)  of  the  VAT  Directive  are  amended  to 
provide  that  the  period  for  keeping  records  in  the  non-Union  scheme  and  Union 
scheme respectively, is the period defined by the Member State of identification of the 
taxable  person  instead  of  the  current  period  of  10  years,  which  largely  exceeds  the 
record keeping requirements of most Member States. 

Article 2 – amendments to the VAT Directive – provisions with effect from 1 January 2021 – 
Extension of the MOSS 

This Article contains the provisions required to extend the application of the current special 
schemes  for  the  taxation  of  'electronic  services'  laid  down  in  Chapter  6  of  Title  XII  of  the 

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VAT Directive to other services as well as to distance sales of goods, both intra-Community 
and  from  outside  the  Community.  Consequently,  the  definitions  of  electronic  services  in 
Article 358 of the VAT Directive can be removed but a definition of distance sales needs to 
be  added  (point  11).  This  Article  also  proposes  a  number  of  further  improvements  to  the 
current  special  schemes.  The  proposed  date  of  entry  into  application  is  1  January  2021  as 
these changes also require laying down detailed implementing provisions and adaptations to 
the IT system for registration and declaration and payment of the VAT (the MOSS). 

1. 

Special  scheme  for  taxable  persons  not  established  in  the  Community  supplying 
services to non-taxable persons in the Community (non-Union scheme) 

The  proposal  extends  the  special  scheme  for  non-established  taxable  persons  supplying 
electronic  services  to  non-taxable  persons  in  the  Community  (Chapter  6,  Section  2  of  Title 
XII of the VAT Directive) to other services. This requires the following changes to the VAT 
Directive: 

– 

– 

Adding a definition of 'Member State of consumption' in Article 358a, providing that 
this  is  the  Member  State  in  which  the  supply  of  services  is  deemed  to  take  place 
according to Chapter 3 of Title V of the VAT Directive (point 13). 

Replacing  the  reference  to  'telecommunication  services,  broadcasting  services  or 
electronic  services'  by  'services'  in  the  title  of  Section  2  (point  12)  as  well  as  in 
Articles 359, 363, 364 and 365 of the VAT Directive (points 14, 16 and 17); 

In  addition,  two  further  improvements  to  this  scheme  resulting  from  the  evaluation  of  the 
MOSS are proposed (point 17): 

– 

– 

2. 

An amendment to Article 364 of the VAT Directive extending the deadline to submit 
the VAT return from 20 to 30 days following the end of the tax period; 

An amendment to Article 365 of the VAT Directive (points 14, 16 and 17) providing 
that corrections to previous VAT returns can be made in a subsequent return instead 
of in the returns of the tax periods to which the corrections relate. 

Special scheme for intra-Community distance sales of goods and for services supplied 
by taxable persons established within the Community but not in the Member State of 
consumption (Union scheme) 

The proposal extends the special scheme for electronic services supplied by taxable persons 
established  within  the  Community  but  not  in  the  Member  State  of  consumption  (Chapter  6, 
Section 3 of Title XII of the VAT Directive) to other services supplied to non-taxable persons 
as well as to intra-Community distance sales of goods. This requires the following changes to 
the VAT Directive: 

– 

Adding a definition of 'intra-Community distance sales of goods' to Article 369a of 
the VAT Directive (point 20(a)). The concept is defined by reference to Article 33(1) 
of  the  VAT  Directive.  The  proposal  also  clarifies  Article  33(1)  in  line  with  the 
guidelines  of  the  VAT  Committee.  Furthermore,  as  the  suppliers  making  intra-
Community  distance  sales  of  goods  will  have  the  possibility  to  use  the  MOSS  and 
declare  and  pay  VAT  on  all  their  distance  sales  in  a  single  Member  State,  the 
proposal  removes  the  current  thresholds  laid  down  in  Article  34  of  the  VAT 
Directive  below  which  distance  sales  remain  subject  to  VAT  in  the  Member  State 
where the transport or dispatch begins (points 3 and 4). These thresholds are replaced 
by  a  threshold  of  EUR 10 000  for  micro-businesses  below  which  the  place  of  the 
supplies  covered  by  this  special  scheme  remains  in  the  Member  State  where  the 
supplier is established (points 5 and 6). In accordance with Article 1, point 2 of the 

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– 

– 

– 

proposal, this threshold should apply as of 1 January 2018, for supplies of electronic 
services only. As of 2021, this threshold should become a global threshold applying 
to electronic services and intra-Community distance sales of goods. Hence, it should 
be removed from Article 58 and inserted in a new Chapter 3a (new Article 59c) in 
Title  V  of  the  VAT  Directive.  Finally,  the  obligation  to  issue  an  invoice  for  intra-
Community distance sales laid down in Article 220(1), point (2) should be removed 
where this special scheme is used (point 9), as this obligation is linked to the current 
intra-Community  distance  sales  regime  requiring  the  monitoring  of  the  national 
thresholds. 

Adding  a  definition  of  'Member  State  of  consumption'  to  Article  369a  of  the  VAT 
Directive (point 20(b)). This is the Member State in which the supply of services is 
deemed to take place according to Chapter 3 of Title V of the VAT Directive or, in 
the  case  of  distance  sales,  the  Member  State  where  the  dispatch  or  the  transport  of 
the goods to the customer ends; 

Amending the heading of Section 3 as well as Articles 369b, 369c, 369e, 369f, 369h 
and 369i, 369j and 369k of the VAT Directive following the extension of the scope 
of this Section (points 19, 21 and 23 to 28). In particular, references to 'the taxable 
person  not  established  in  the  Member  State  of  consumption'  are  replaced  by  'the 
taxable person making use of this scheme', as the requirement not to be established in 
the Member State of consumption does not apply to intra-Community distance sales 
of goods; 

Extending the content of the VAT return in Article 369g(1) of the VAT Directive, so 
as  to  include  also  data  concerning  distance  sales  of  goods  (points  24).  Taxable 
persons carrying out both supplies of services and distance sales of goods under this 
special  scheme  should  be  able  to  declare  both  types  of  supplies  in  the  same  VAT 
return. The new Article 369g(2) of the VAT Directive provides that where a single 
taxable  person  supplies  goods  from  different  Member  States  under  this  special 
scheme,  the  VAT  return  shall  provide  a  breakdown  of  these  supplies  per  Member 
State of consumption for each Member State of dispatch. This provision is similar to 
the existing provision for electronic services in the second paragraph of the current 
Article 369g of the VAT Directive, which now becomes paragraph 3 of Article 369g.  

In  addition,  as  for  the  non-Union  scheme,  the  proposal  extends  the  deadline  to  submit  the 
VAT return from 20 to 30 days following the end of the tax period in Article 369f of the VAT 
Directive and, in Article 369g(4) of the VAT Directive, provides that corrections to previous 
VAT returns can be made in a subsequent return instead of in the returns of the tax periods to 
which the corrections relate (points 24).  

Finally, a clarification to Article 14(2)(c) of the VAT Directive is proposed (point 1), similar 
to the clarification proposed to Article 28 of the VAT Directive (point 1 of Article 1), so as to 
clarify  that  this  Article  also  applies  where  online  sales  of  goods  are  made  through  an 
intermediary or a third party who is acting in his own name but on behalf of another person 
and who is using an electronic interface to make the supply (e.g. an electronic platform). 

3. 

Special  scheme  for  distance  sales  of  goods  imported  from  third  countries  or  third 
territories of an intrinsic value not exceeding EUR 150 (the import scheme) 

A new Section 4 is added to Chapter 6 of Title XII of the VAT Directive creating a special 
scheme for distance sales of goods imported from third countries or third territories (point 29). 
This Section has the same structure and is based on the same principles as the special schemes 
of Sections 2 and 3 of Chapter 6. 

EN 

9 

   EN 

Article  369l  lays  down  the  definitions  applying  to  this  Section.  The  definition  of  'distance 
sales  of  goods  imported  from  third  countries'  lays  down  the  scope  of  this  special  scheme, 
which covers sales of goods in consignments of an intrinsic value12 not exceeding EUR 150, 
the place of supply of which is governed by Article 33(2) of the VAT Directive. It currently 
provides that where goods sold 'on distance' are imported into a Member State other than the 
Member  State  in  which  the  transport  to  the  customer  ends,  a  supply  of  goods  is  deemed  to 
take place in the latter Member State. To allow the use of the special scheme also in situations 
where the Member State where the customer is located and the Member State of importation 
are the same, a second subparagraph is added in Article 33(2) creating a taxable event in that 
Member  State  where  the  special  scheme  is  used  (point  2(b)).  A  definition  of  what  is  an 
'intermediary'  is  necessary,  as  it  should  be  possible  for  vendors  not  established  within  the 
Community  to  designate  a  person  established  within  the  Community  to  fulfil  their  VAT 
obligations under this special scheme in their name and on their behalf. Which Member State 
can  be  the  'Member  State  of  identification'  depends  on  whether  or  not  the  vendor  is 
established or has a fixed establishment in the Community and whether or not an intermediary 
has been designated by the vendor. Finally, the 'Member State of consumption' refers to the 
Member State where the transport to the customer ends. 

Article 369m provides who is eligible to use this special scheme. According to the proposal, a 
vendor  not  established  in  the  Community  should  designate  an  intermediary  except  if  he  is 
duly authorised by the Member State of identification or if he is established in a country with 
which  the  EU  has  concluded  an  agreement  on  mutual  assistance.  The  list  of  countries 
concerned should be established subsequently in a Commission Implementing Regulation.  

Article 369n provides that VAT shall become chargeable at the time when the payment has 
been accepted. This provision is needed to determine which supplies should be included in the 
periodic VAT return. 

Articles  369o  to  369x  replicate  the  provisions  of  the  two  other  special  schemes  concerning 
identification, VAT returns, VAT payments and record keeping. To be noted that Article 369s 
contains a provision specific to the import scheme stipulating that Member States should not 
impose any further declarative obligations on top of the periodic VAT return. 

Where VAT is declared under this special scheme, no VAT should be payable anymore upon 
importation  of  the  goods.  It  is  therefore  necessary  to  provide  for  an  exemption  for  such 
imports. This exemption is inserted in Article 143(1) of the VAT Directive. To allow customs 
to identify these consignments upon importation a valid VAT identification number proving 
that  VAT  is  declared  under  the  special  scheme  should  be  provided  to  customs  at  the  latest 
upon lodging of the import declaration (point 7).  

Even  though  this  scheme  primarily  targets  distance  sales  to  final  consumers,  it  cannot  be 
excluded  that  taxable  persons  purchase  goods  online  for  business  purposes  outside  the 
Community  from  a  vendor  using  this  special  scheme.  To  allow  these  taxable  persons  to 
exercise the right of deduction of VAT paid on such purchases, a new point (g) is added to 
Article 178 laying down the conditions for exercising the right of deduction (point 8). 

4. 

Special arrangements for declaration and payment of import VAT for distance sales of 
goods from third countries or third territories where the import scheme is not used 

Simplification measures are introduced for goods in consignments of a value for which VAT 
is  not  accounted  for  via  the  import  scheme  set  out  in  section  3  above  (point  30).  For  such 
imports,  Member  States  should  allow  the  person  presenting  the  goods  to  customs  in  the 
Community (typically the postal operators or express couriers) to report and pay import VAT 

12 

Intrinsic value is the value of the goods alone, and does not include insurance and freight. 

EN 

10 

   EN 

                                                 
due on these consignments electronically on the basis of a monthly declaration, on behalf of 
the person for whom the goods are destined. To further simplify the declaration, these goods 
should systematically be subjected to the standard VAT rate, unless the person for whom the 
goods are destined specifically request the application of a reduced rate. In this case however, 
a standard customs declaration would be required.  

Article 3 – amendment to Directive 2009/132/EC 

Title  IV  (Articles  23  and  24)  of  Directive  2009/132/EC  provides  for  an  exemption  for 
imported  goods  of  negligible  value  not  exceeding  a  total  value  of  EUR  10  up  to  EUR  22 
(amount to be decided by each Member State). As the use of the special scheme (and thus of 
the MOSS) will allow for VAT to be declared and paid on imported goods ordered online and 
thus  will  drastically  simplify  VAT  collection,  there  is  no  need  to  maintain  this  VAT 
exemption. The proposal therefore removes this exemption as from 1 January 2021, which is 
the proposed date of entry into force of the import scheme. 

EN 

11 

   EN 

2016/0370 (CNS) 

Proposal for a 

COUNCIL DIRECTIVE 

amending Directive 2006/112/EC and Directive 2009/132/EC as regards certain value 
added tax obligations for supplies of services and distance sales of goods 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 113 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Parliament1, 
Having regard to the opinion of the European Economic and Social Committee2, 

Acting in accordance with a special legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

Council  Directive  2006/112/EC3  provides  for  special  schemes  for  charging  value 
added  tax  (VAT)  for  non-established  taxable  persons  providing  telecommunications, 
broadcasting or electronically supplied services to non-taxable persons.  
Council Directive 2009/132/EC4 provides for an exemption from VAT of imports of 
small consignments of negligible value. 

The  assessment  of  those  special  schemes  as  introduced  on  1  January  2015  has 
identified a number of areas for improvement. First, the burden for micro-businesses 
established in a Member State occasionally supplying such services to other Member 
States  of  having  to  comply  with  VAT  obligations  in  Member  States  other  than  their 
Member  State  of  establishment  should  be  reduced.  A  Community-wide  threshold 
should therefore be introduced up to  which these  supplies remain subject to  VAT  in 
their  Member  State  of  establishment.  Second,  the  requirement  of  having  to  comply 
with  the  invoicing  and  record  keeping  requirements  of  all  Member  States  to  which 
supplies  are  made  is  very  burdensome.  Hence,  to  minimise  burdens  on  business,  the 
rules  concerning  invoicing  and  record  keeping  should  be  those  applicable  in  the 
Member  State  of  identification  of  the  supplier  making  use  of  the  special  schemes. 
Third,  taxable  persons  not  established  in  the  Community  but  having  a  VAT 
registration  in  a  Member  State  (e.g.  because  they  carry  out  occasional  transactions 
subject to VAT in that Member State) can use neither the special scheme for taxable 

1 
2 
3 

4 

OJ C , , p. . 
OJ C , , p. . 
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 2009/132/EC of 19 October 2009 determining the scope of Article 143(b) and (c) of 
Directive 2006/112/EC as regards exemption from value added tax on the final importation of certain 
goods (OJ L 292, 10.11.2009, p. 5). 

EN 

12 

   EN 

                                                 
(4) 

(5) 

(6) 

(7) 

persons not established in the Community, nor the special scheme for taxable persons 
established  in  the  Community.  As  a  consequence,  it  is  proposed  that  such  taxable 
persons  should  be  permitted  to  use  the  special  scheme  for  taxable  persons  not 
established within the Community.  

for 

the 

the  assessment  of 

the  special  schemes 

taxation  of 
Furthermore, 
telecommunications,  broadcasting  or  electronically  supplied  services  introduced  on 
1 January 2015  has  shown  that  the  requirement  to  submit  the  VAT  return  within 
20 days  following  the  end  of  the  tax  period  covered  by  the  return  is  too  short,  in 
particular for supplies through a telecommunications network, an interface or a portal, 
where the services supplied through that network, interface or portal are presumed to 
be supplied by the operator of the network, interface or portal, who has to collect the 
information  to  complete  the  VAT  return  from  each  single  service  supplier.  The 
assessment has also shown that the requirement to make corrections in the VAT return 
of the tax period concerned is very burdensome for taxable persons, as it may require 
them to re-submit several VAT returns every quarter. As a consequence, the deadline 
to submit the VAT return should be extended from 20 to 30 days following the end of 
the tax period and taxable persons should be allowed to correct previous VAT returns 
in  a  subsequent  return  instead  of  in  the  returns  of  the  tax  periods  to  which  the 
corrections relate. 

To  avoid  that  taxable  persons  supplying  services  other  than  telecommunications, 
broadcasting  or  electronically  supplied  services  to  non-taxable  persons  have  to  be 
identified for VAT purposes in each and every Member State where these services are 
subject to VAT, Member States should permit taxable persons supplying such services 
to make use of the IT system for registration and for declaration and payment of the 
VAT  allowing  them  to  declare  and  pay  VAT  on  these  services  in  a  single  Member 
State. 

In order to clarify the scope of provisions dealing with the situations where goods or 
services are purchased and supplied further down to the subsequent buyer reference to 
new  means  of  electronic  interaction  via  which  transactions  are  concluded  should  be 
made with a view of taking into account technological developments.  

The  realisation  of  the  internal  market,  globalisation,  and  technological  change  have 
resulted in an explosive growth of electronic commerce and, hence, of distance sales 
of goods, both supplied from one Member State to another and from third territories or 
third countries to the Community. The relevant provisions of Directives 2006/112/EC 
and 2009/132/EC should be adapted to this evolution, taking into account the principle 
of taxation at destination, the need to protect Member States' tax revenue, to create a 
level playing field for the businesses concerned and to minimise burdens on them. The 
special  scheme  for  telecommunications,  broadcasting  or  electronically  supplied 
services supplied by taxable persons established within the Community but not in the 
Member  State  of  consumption  should  therefore  be  extended  to  intra-Community 
distance sales of goods and a similar special scheme should be introduced for distance 
sales of goods imported from third territories or third countries. 

(8) 

To  reduce  the  burden  for  businesses  making  use  of  the  special  scheme  for  intra-
Community distance sales of goods, the obligation to issue an invoice for such sales 
should  be  removed.  To  provide  legal  certainty  to  such  businesses,  the  rules 
determining the place  of those supplies  of goods  should clearly  state  that they apply 
also where the goods are transported or dispatched indirectly on behalf of the supplier. 

EN 

13 

   EN 

(9) 

The  scope  of  the  special  scheme  for  distance  sales  of  goods  imported  from  third 
territories or third countries should be restricted to sales of goods of an intrinsic value 
not exceeding EUR 150, as of which a full customs declaration is required for customs 
purposes  upon  importation.  In  order  to  avoid  double  taxation,  an  exemption  from 
value  added  tax  upon  importation  of  the  goods  declared  under  this  special  scheme 
should be introduced. In addition, in order to avoid distortion of competition between 
suppliers  inside  and  outside  the  Community  and  to  avoid  losses  of  tax  revenue,  it is 
necessary  to  remove  the  exemption  for  imports  of  goods  in  small  consignments  of 
negligible value provided for in Directive 2009/132/EC. 

(10)  A  taxable  person  making  use  of  the  special  scheme  for  distance  sales  of  goods 
imported  from  third  territories  or  third  countries  should  be  allowed  to  appoint  an 
intermediary  established  in  the  Community  as  the  person  liable  for  payment  of  the 
VAT and to fulfil the obligations laid down in the special scheme in his name and on 
his behalf.  

(11) 

(12) 

In order to protect Member States' tax revenue, a taxable person not established in the 
Community  making  use  of  this  special  scheme  should  be  obliged  to  designate  an 
intermediary. However, this obligation should not apply if he is duly authorised by the 
Member  State  of  identification  or  if  he  is  established  in  a  country  with  which  the 
Union has  concluded  an agreement on mutual  assistance. Such authorisations should 
be subject to a strict list of clearly established criteria.  

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Directive 
concerning  the  establishment  of  the  list  of  third  countries  with  which  the  Union  has 
concluded  an  agreement  on  mutual  assistance  similar  in  scope  to  Council  Directive 
2008/55/EC5  and  Council  Regulation  (EU)  No  904/20106,  implementing  powers 
should  be  conferred  on  the  Commission.  Those  powers  should  be  exercised  in 
accordance with Regulation (EU) No 182/2011 of the European Parliament and of the 
Council7. Since the establishment of the list of third countries is directly linked with 
the administrative cooperation in the field of value added tax, it is appropriate that the 
Commission is assisted by the Standing Committee on Administrative Cooperation set 
up by Article 58 of Regulation (EU) No 904/2010. 

(13)  Following the explosive growth of electronic commerce and the resulting increase in 
the  number  of  small  consignments  of  an  intrinsic  value  not  exceeding  EUR 150 
imported  in  the  Community,  Member  States  should  systematically  permit  the  use  of 
special  arrangements  for  declaration  and  payment  of  import  VAT.  This  arrangement 
can  be  applied  where  the  special  scheme  for  distance  sales  of  goods  imported  from 
third territories or third countries is not used and where the final customer did not opt 
for the standard import procedure in order to avail himself of a potential reduced VAT 
rate. 

(14)  The date of application of the provisions of this Directive shall, where relevant, take 
account of the time needed to put in place the measures necessary to implement this 
Directive and for the Member States to adapt their IT system  for registration and for 
declaration and payment of the VAT. 

5 

6 

7 

Council Directive 2008/55/EC of 26 May 2008 on mutual assistance for the recovery of claims relating 
to certain levies, duties, taxes and other measures (OJ L 150, 10.6.2008, p. 28). 
Council Regulation (EU) No 904/2010 of 7 October 2010 on administrative cooperation and combating 
fraud in the field of value added tax (OJ L 268, 12.10.2010, p. 10). 
Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by the Member States 
of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 

EN 

14 

   EN 

                                                 
(15)  Since the objectives of this Directive, namely the simplification of VAT obligations, 
cannot  be  sufficiently  achieved  by  the  Member  States  and  can  therefore  be  better 
achieved  at  Union  level,  the  Union  may  adopt  measures,  in  accordance  with  the 
principle  of  subsidiarity  as  set  out  in  Article  5  of  the  Treaty  on  European  Union.  In 
accordance  with  the  principle  of  proportionality,  as  set  out  in  that  Article,  this 
Directive does not go beyond what is necessary in order to achieve those objectives. 

(16) 

In  accordance  with  the  Joint  Political  Declaration  of  Member  States  and  the 
Commission of 28 September 2011 on explanatory documents8 , Member States have 
undertaken  to  accompany,  in  justified  cases,  the  notification  of  their  transposition 
measures  with  one  or  more  documents  explaining  the  relationship  between  the 
components  of  a  directive  and  the  corresponding  parts  of  national  transposition 
instruments. With regard to this Directive, the legislator considers the transmission of 
such documents to be justified. 

(17)  Directives 2006/112/EC and 2009/132/EC should therefore be amended accordingly, 

HAS ADOPTED THIS DIRECTIVE: 

Article 1 

Amendments to Directive 2006/112/EC with effect from 1 January 2018 

With effect from 1 January 2018, Directive 2006/112/EC is amended as follows: 

(1) 

Article 28 is replaced by the following: 

'Article 28 

Where a taxable person acting in his own name but on behalf of another person takes 
part in a supply of services, including cases where a telecommunications network, an 
interface or a portal is used for that purpose, he shall be deemed to have received and 
supplied those services himself.' 

(2) 

Article 58 is replaced by the following: 

‘Article 58 

The  place  of  supply  of  the  following  services  to  a  non-taxable  person  shall  be  the 
1. 
place  where  that  person  is  established  or,  in  the  absence  of  an  establishment,  has  his 
permanent address or usually resides: 

(a) 

(b) 

(c) 

telecommunications services; 

radio and television broadcasting services; 

electronically supplied services, in particular those referred to in Annex II. 

Where the supplier of a service and the customer communicate via electronic mail, that shall 
not of itself mean that the service supplied is an electronically supplied service. 

2. 

(a) 

Paragraph 1 shall not apply, where the following conditions are met: 

the supplier is established or, in the absence of an establishment, has his permanent 
address or usually resides in only one Member State;  

8 

OJ C 369, 17.12.2011, p. 14. 

EN 

15 

   EN 

                                                 
(b) 

(c) 

services  are  provided  to  customers  located  in  any  Member  State  other  than  the 
Member State referred to in point (a); 

the total value, exclusive of VAT, of such supplies does not in the current calendar 
year exceed EUR 10 000, or the equivalent in national currency, and did not do so in 
the course of the preceding calendar year. 

Where, during a calendar year, the threshold referred to in point (c) of paragraph 2 is 

3. 
exceeded, paragraph 1 shall apply as of that time.  

The  Member  State  within  the  territory  of  which  the  suppliers  referred  to  in 
4. 
paragraph 2  are  established  or,  in  the  absence  of  an  establishment,  have  their  permanent 
address or usually reside, shall grant those suppliers the right to opt for the place of supply to 
be determined in accordance with paragraph 1. 

Member  States  shall  take  all  appropriate  measures  to  monitor  the  fulfilment  by  the 

5. 
taxable person of the conditions referred to in paragraph 2.’ 

(3) 

Article 219a is replaced by the following:  

‘Article 219a 

Invoicing  shall  be  subject  to  the  rules  applying  in  the  Member  State  in  which  the 
1. 
supply  of  goods  or  services  is  deemed  to  be  made,  in  accordance  with  the  provisions  of 
Title V.  

2. 
rules: 

(a) 

By  way  of  derogation  from  paragraph 1,  invoicing  shall  be  subject  to  the  following 

the  rules  applying  in  the  Member  State  in  which  the  supplier  has  established  his 
business  or  has  a  fixed  establishment  from  which  the  supply  is  made  or,  in  the 
absence  of  such  place  of  establishment  or  fixed  establishment,  the  Member  State 
where the supplier has his permanent address or usually resides, where:  

(i) 

the  supplier  is  not  established  in  the  Member  State  in  which  the  supply  of 
goods or services is deemed to be made, in accordance with the provisions of 
Title V,  or  his  establishment  in  that  Member  State  does  not  intervene  in  the 
supply  within  the  meaning  of  Article 192a(b),  and  the  person  liable  for  the 
payment of the VAT is the person to whom the goods or services are supplied.  

(ii) 

the  supply  of  goods  or  services  is  deemed  not  to  be  made  within  the 
Community, in accordance with the provisions of Title V; 

(b) 

the rules applying in the Member State where the supplier making use of one of the 
special schemes referred to in Chapter 6 of Title XII is identified. 

Where  the  supplier  is  not  established  in  the  Member  State  in  which  the  supply  of  goods  or 
services is deemed to be made and the customer issues the invoice (self-billing) or where no 
use  is  made  of  the  special  schemes  referred  to  in  Chapter  6  of  Title  XII,  paragraph 1  shall 
apply.  

3. 
248.’ 

(4) 

‘(1) 

Paragraphs  1  and  2  of  this  Article  shall  apply  without  prejudice  to  Articles 244  to 

in Article 358a, point (1) is replaced by the following: 

‘taxable person not established within the Community' means a taxable person who 
has  not  established  his  business  in  the  territory  of  the  Community  and  who  has  no 
fixed establishment there;’ 

EN 

16 

   EN 

(5) 

‘(e) 

in Article 361(1), point (e) is replaced by the following: 

a  statement  that  the  person  has  not  established  his  business  in  the  territory  of  the 
Community and has no fixed establishment there.' 

(6) 

in Article 369(2), the second subparagraph is replaced by the following: 

‘The  Member  State  of  identification  shall  determine  the  period  throughout  which  those 
records shall be kept by the taxable person not established within the Community.’ 

(7) 

in Article 369k(2), the second subparagraph is replaced by the following: 

‘The  Member  State  of  identification  shall  determine  the  period  throughout  which  those 
records shall be kept by the taxable person not established within the Community.’ 

Article 2 

Amendments to Directive 2006/112/EC with effect from 1 January 2021 

With effect from 1 January 2021, Directive 2006/112/EC is amended as follows: 

(1) 

'(c) 

(2) 

(a) 

in Article 14(2) point (c) is replaced by the following: 

the transfer of goods  pursuant to  a contract under which commission  is payable  on 
purchase or sale, including cases where a telecommunications network, an interface 
or a portal is used for that purpose.' 

Article 33 is amended as follows: 

in paragraph 1, the introductory words are replaced by the following: 

‘By way of derogation from Article 32, the place of supply of goods dispatched or transported 
by the supplier, or directly or indirectly on his behalf, from a Member State other than that in 
which dispatch or transport of the goods ends shall be deemed to be the place where the goods 
are located at the time when dispatch or transport of the goods to the customer ends, where 
the following conditions are met:’  

(b) 

in paragraph 2, the following subparagraph is added: 

‘Where the goods are dispatched or transported from a third territory or a third country and 
imported by the supplier into the Member State in which dispatch or transport of the goods 
ends, the goods shall be deemed as having been supplied in that Member State provided that 
VAT on those goods is declared under the special scheme of Section 4 of Chapter 6 of Title 
XII.’ 

(3) 

(4) 

Article 34 is deleted. 

Article 35 is replaced by the following: 

‘Article 35 

Article 33 shall not apply to supplies of second-hand goods, works of art, collectors' items or 
antiques,  as  defined  in  points  (1)  to  (4)  of  Article 311(1),  nor  to  supplies  of  second-hand 
means  of  transport,  as  defined  in  Article 327(3),  subject  to  VAT  in  accordance  with  the 
relevant special arrangements.’ 

(5) 

(6) 

in Article 58, paragraphs 2 to 5 are deleted. 

in Title V, the following Chapter 3a is inserted: 

EN 

17 

   EN 

‘CHAPTER 3a 

Threshold for taxable persons making supplies of goods covered by Article 33(1) and 
supplies of services covered by Article 58 

Article 59c 

1. 

(a) 

(b) 

(c) 

Article 33(1) and Article 58 shall not apply, where the following conditions are met: 

the supplier is established or, in the absence of an establishment, has his permanent 
address or usually resides only in one Member State; 

services are provided or goods are dispatched or transported to customers  located in  
any Member State other than the Member State referred to in point (a); 

the total value, exclusive of VAT, of the supplies covered by these provisions does 
not  in  the  current  calendar  year  exceed  EUR 10 000,  or  the  equivalent  in  national 
currency, nor did it do so in the course of the preceding calendar year.  

Where, during a calendar year, the threshold referred to in point (c) of paragraph 1 is 

2. 
exceeded, Articles 33(1) and 58 shall apply as of that time.  

The Member State within the territory of which the goods are located at the time when 
3. 
their dispatch or transport begins or where the taxable persons supplying telecommunications, 
radio and television broadcasting services and electronically supplied services are established 
shall grant taxable persons carrying out supplies eligible under paragraph 1 the right to opt for 
the place of supply to be determined in accordance with Article 33(1) and Article 58.  

Member  States  shall  take  all  appropriate  measures  to  monitor  the  fulfilment  by  the 

4. 
taxable person of the conditions referred to in paragraph 1.’ 

(7) 

‘(ca) 

(8) 

‘(g) 

(9) 

‘(2) 

in Article 143(1), the following point (ca) is inserted: 

the  importation  of  goods  where  the  VAT  is  declared  under  the  special  scheme  in 
Chapter 6, Section 4, of Title XII and where, at the latest upon lodging of the import 
declaration,  the  VAT  identification  number  of  the  supplier  or  of  the  intermediary 
acting on his behalf allocated under Article 369q has been provided to the competent 
customs office in the Member State of importation;’ 

in Article 178, the following point (g) is added: 

when required to pay VAT as a customer where Section 4 of Chapter 6 of Title XII 
applies, he must hold an invoice or a document in lieu thereof issued by the taxable 
person  making  use  of  the  special  scheme  or,  if  applicable,  his  intermediary  clearly 
identifying  the  VAT  paid  and  the  VAT  identification  number  allocated  under 
Article 369q.’ 

in Article 220(1), point (2) is replaced by the following:  

supplies of goods as referred to in Article 33 except where a taxable person is making 
use of the special scheme in Section 2 of Chapter 6 of Title XII;’. 

(10) 

the heading of Chapter 6 of Title XII is replaced by the following: 

‘Special schemes for non-established taxable persons supplying 
services or making distance sales of goods to non-taxable persons 
in the Community’ 

EN 

18 

   EN 

(11)  Article 358 is amended as follows: 

(a) 

(b) 

‘(3a) 

points 1, 2 and 3 are deleted; 

the following point 3a is inserted: 

'distance  sales  of  goods'  means  sales  of  goods  the  place  of  supply  of  which  is 
governed  by  Article 33(1)  and  goods  in  consignments  of  an  intrinsic  value  not 
exceeding  EUR  150  the  place  of  supply  of  which  is  governed  by  Article 33(2)  or 
(3);’. 

(12) 

the heading of Section 2 is replaced by the following: 

‘Special scheme for services supplied by taxable persons not established within the 
Community’ 

(13) 

in Article 358a, the following point 3 is added: 

‘(3) 

'Member  State  of  consumption'  means  the  Member  State  in  which  the  supply  of 
services is deemed to take place according to Chapter 3 of Title V;'. 

(14)  Article 359 is replaced by the following: 

‘Article 359 

Member  States  shall  permit  any  taxable  person  not  established  within  the  Community 
supplying  services to  a non-taxable person who is  established in  a Member  State or has  his 
permanent  address  or  usually  resides  in  a  Member  State,  to  use  this  special  scheme.  This 
scheme applies to all those services supplied within the Community.’ 

(15) 

in Article 362, the second sentence is deleted. 

(16) 

in Article 363, point (a) is replaced by the following: 

‘(a) 

if he notifies that Member State that he no longer supplies services covered by this 
special scheme;’  

(17)  Articles 364 and 365 are replaced by the following: 

‘Article 364 

The taxable person not established within the Community making use of this special scheme 
shall submit by electronic means to the Member State of identification a VAT return for each 
calendar quarter, whether or not services covered by this special scheme have been supplied. 
The VAT return shall be submitted within 30 days following the end of the tax period covered 
by the return. 

Article 365 

The  VAT  return  shall  show  the  VAT  identification  number  and,  for  each  Member  State  of 
consumption in which VAT is due, the total value, exclusive of VAT, of supplies of services 
covered by this special scheme carried out during the tax period and total amount per rate of 
the  corresponding  VAT.  The  applicable  rates  of  VAT  and  the  total  VAT  due  must  also  be 
indicated on the return. 

Where  any  amendments  to  the  VAT  return  are  required  after  its  submission,  such 
amendments  shall  be  included  in  a  subsequent  return  at  the  latest  within  three  years  of  the 
date on which the initial return was required to be submitted pursuant to Article 364.’ 

EN 

19 

   EN 

(18)  Article 368 is replaced by the following: 

‘Article 368 

The taxable person not established within the Community making use of this special scheme 
may not deduct VAT pursuant to Article 168 of this Directive. Notwithstanding point (1) of 
Article 1  of  Directive  86/560/EEC,  the  taxable  person  in  question  shall  be  refunded  in 
accordance with that Directive. Article 2(2) and (3) and Article 4(2) of Directive 86/560/EEC 
shall not apply to refunds relating to services covered by this special scheme. 

If the taxable person making use of this special scheme also carries out in the Member State 
of consumption activities not covered by this special scheme in respect of which he is obliged 
to  be  registered  for  VAT  purposes,  he  shall  deduct  VAT  in  respect  of  his  taxable  activities 
which  are  covered  by  this  special  scheme  in  the  VAT  return  to  be  submitted  pursuant  to 
Article 250.’ 

(19) 

the heading of Section 3 of Chapter 6 of Title XII is replaced by the following: 

‘Special scheme for intra-Community distance sales of goods and for services supplied by 
taxable persons established within the Community but not in the Member State of 
consumption’ 

(20)  Article 369a is amended as follows: 

(a) 

the following point 1a is inserted: 

‘(1a) 

(b) 

‘(3) 

‘intra-Community  distance  sales  of  goods’  means  sales  of  goods  dispatched  or 
transported  by  the  supplier,  or  directly  or  indirectly  on  his  behalf,  from  a  Member 
State  other  than  that  in  which  dispatch  or  transport  of  the  goods  ends  the  place  of 
supply of which is governed by Article 33(1);’ 

the following point 3 is added: 

‘Member  State  of  consumption’  means  the  Member  State  in  which  the  supply  of 
services is deemed to take place according to Chapter 3 of Title V or, in the case of 
intra-Community  distance  sales  of  goods,  the  Member  State  where  the  dispatch  or 
transport of the goods to the customer ends.’ 

(21)  Articles 369b and 369c are replaced by the following: 

‘Article 369b 

Member States shall permit any taxable person carrying out intra-Community distance sales 
of  goods  and  any  taxable  person  not  established  in  the  Member  State  of  consumption 
supplying services to a non-taxable person who is established or has his permanent address or 
usually resides in that Member State, to use this special scheme. This special scheme applies 
to all those goods or services supplied in the Community. 

Article 369c 

A  taxable  person  shall  state  to  the Member  State  of  identification  when  he  commences  and 
ceases his taxable activities covered by this special scheme, or changes those activities in such 
a  way  that  he  no  longer  meets  the  conditions  necessary  for  use  of  this  special  scheme.  He 
shall communicate that information electronically.’ 

(22) 

in Article 369d, the second paragraph is deleted. 

EN 

20 

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(23)  Article 369e is amended as follows: 

(a) 

the introductory words are replaced by the following: 

‘The Member State of identification shall exclude a taxable person from the special scheme in 
any of the following cases:’ 

(b) 

‘(a) 

point (a) is replaced by the following: 

if he notifies that he no longer carries out intra-Community distance sales of goods 
and supplies of services covered by this special scheme;’ 

(24)  Articles 369f and 369g are replaced by the following: 

‘Article 369f 

The taxable person making use of this special scheme shall submit by electronic means to the 
Member State of identification a VAT return for each calendar quarter, whether or not intra-
Community distance sales of goods have been carried out or services covered by this special 
scheme have been supplied. The VAT return shall be submitted within 30 days following the 
end of the tax period covered by the return. 

Article 369g 

1. 
The VAT return shall show the VAT identification number referred to in Article 369d 
and, for each Member State of consumption in which VAT is due, the total value, exclusive of 
VAT, of intra-Community distance sales of goods as well as of supplies of services covered 
by this special scheme carried out during the tax period and the total amount per rate of the 
corresponding  VAT.  The  applicable  rates  of  VAT  and  the  total  VAT  due  must  also  be 
indicated on the return. The VAT return shall also include amendments relating to previous 
tax periods. 

2. 
Where, in the case of intra-Community distance sales of goods covered by this special 
scheme,  goods  are  dispatched  or  transported  from  Member  States  other  than  the  Member 
State of identification, the VAT return shall also include the total value of such sales for each 
Member  State  where  the  goods  are  dispatched  or  transported  from,  together  with  the 
individual  VAT  identification  number  or  the  tax  reference  number  allocated  by  each  such 
Member  State.  The  VAT  return  shall  include  this  information  for  each  Member  State  other 
than the Member State of identification, broken down by Member State of consumption.  

3. 
Where the taxable person supplying services covered by this special scheme has one 
or  more  fixed  establishments,  other  than  that  in  the  Member  State  of  identification,  from 
which  the  services  are  supplied,  the  VAT  return  shall  also  include  the  total  value  of  such 
supplies,  for  each  Member  State  in  which  he  has  an  establishment,  together  with  the 
individual  VAT  identification  number  or  the  tax  reference  number  of  this  establishment, 
broken down by Member State of consumption. 

4. 
Where  any  amendments  to  the  VAT  return  are  required  after  its  submission,  such 
amendments  shall  be  included  in  a  subsequent  return  at  the  latest  within  three  years  of  the 
date on which the initial return was required to be submitted pursuant to Article 369f.’ 

(25) 

in the second subparagraph of Article 369h(1), the second sentence is replaced by the 
following: 

‘If  the  supplies  have  been  made  in  other  currencies,  the  taxable  person  making  use  of  this 
special scheme shall,  for the purposes of completing the VAT return, use  the exchange rate 
applying on the last date of the tax period.’ 

EN 

21 

   EN 

(26) 

in Article 369i, the first paragraph is replaced by the following: 

‘The taxable person making use of this special scheme shall pay the VAT, making reference 
to the relevant VAT return, at the latest at the expiry of the deadline by which the return must 
be submitted.’ 

(27)  Article 369j is replaced by the following: 

‘Article 369j 

The  taxable  person  making  use  of  this  special  scheme  may  not,  in  respect  of  his  taxable 
activities  covered  by  this  special  scheme,  deduct  VAT  incurred  in  the  Member  State  of 
consumption  pursuant  to  Article 168  of  this  Directive.  Notwithstanding  Article 2(1)  and 
Article 3  of  Directive  2008/9/EC,  the  taxable  person  in  question  shall  be  refunded  in 
accordance with that Directive.  

If the taxable person making use of this special scheme also carries out in the Member State 
of consumption activities not covered by this special scheme in respect of which he is obliged 
to  be  registered  for  VAT  purposes,  he  shall  deduct  VAT  in  respect  of  his  taxable  activities 
which  are  covered  by  this  special  scheme  in  the  VAT  return  to  be  submitted  pursuant  to 
Article 250.’ 

(28) 

in Article 369k, paragraph 1 is replaced by the following: 

‘1. 
The  taxable  person  making  use  of  this  special  scheme  shall  keep  records  of  the 
transactions  covered  by  this  special  scheme.  Those  records  must  be  sufficiently  detailed  to 
enable the tax authorities of the Member State of consumption to verify that the VAT return is 
correct.’  

(29) 

in Chapter 6 of Title XII, the following Section 4 is added: 

‘Section 4 
Special scheme for distance sales of goods imported from third countries or third 
territories 

Article 369l 

For  the  purposes  of  this  Section,  and  without  prejudice  to  other  Community  provisions,  the 
following definitions shall apply: 

(1) 

(2) 

(3) 

‘distance  sales  of  goods  imported  from  third  territories  or  third  countries’  means 
sales  of  goods  in  consignments  of  an  intrinsic  value  not  exceeding  EUR  150  the 
place of supply of which is governed by Article 33(2); 

'taxable person not established within the Community' means a taxable person who 
has  not  established  his  business  in  the  territory  of  the  Community  and  who  has  no 
fixed establishment there; 

‘intermediary’  means  a  person  established  in  the  Community  appointed  by  the 
taxable person carrying out distance sales of goods imported from third territories or 
third  countries  as  the  person  liable  for  payment  of  the  VAT  and  to  fulfil  the 
obligations laid down in this special scheme in the name and on behalf of the taxable 
person. 

(4) 

‘Member State of identification’ means the following: 

EN 

22 

   EN 

(a)  where  the  taxable  person  is  not  established  in  the  Community,  the  Member 

State which he chooses to contact; 

(b)  where the taxable person has established his business outside the Community 
but  has  one  or  more  fixed  establishments  therein,  the  Member  State  with  a 
fixed establishment where the taxable person indicates he will make use of this 
special scheme; 

(c)  where the taxable person has established his business  in a Member State, that 

Member State; 

(d)  where  the  intermediary  has  established  his  business  in  a  Member  State,  that 

Member State; 

(e)  where the intermediary has established his business outside the Community but 
has  one  or  more  fixed  establishments  therein,  the  Member  State  with  a  fixed 
establishment where the intermediary indicates he will make use of this special 
scheme; 

(5) 

‘Member  State  of  consumption’  means  the  Member  State  where  the  dispatch  or 
transport of the goods to the customer ends; 

Member States shall permit the following taxable persons carrying out distance sales 

1. 
of goods imported from third territories or third countries to use this special scheme: 

Article 369m 

(a) 

(b) 

(c) 

any  taxable  person  established  in  the  Community  carrying  out  distance  sales  of 
goods imported from third territories or third countries;  

any  taxable  person  whether  or  not  established  in  the  Community  carrying  out 
distance sales of goods imported from third territories or third countries and who is 
represented by an intermediary established in the Community;  

any taxable person not established in the Community carrying out distance sales of 
goods  imported  from  third  territories  or  third  countries  and  duly  authorised  by  the 
Member State of identification where the following criteria are complied with: 

(i) 
the absence of any serious infringement or repeated infringements of customs 
legislation  and  taxation  rules,  including  no  record  of  serious  criminal  offences 
relating to the economic activity of the taxable person; 

(ii) 
the demonstration by the taxable person of a high level of control of his or her 
operations  and  of  the  flow  of  goods,  by  means  of  a  system  managing  commercial 
and, where appropriate, transport records, which allow appropriate customs and tax 
controls; 

financial  solvency,  which  shall  be  deemed  to  be  proven  where  the  taxable 
(iii) 
person  has  good  financial  standing,  which  enables  him  or  her  to  fulfil  his  or  her 
commitments, with due regard to the characteristics of the type of business activity 
concerned. 

(d) 

any taxable person established in a third country with which the Union has concluded 
an  agreement  on  mutual  assistance  similar  in  scope  to  Council  Directive 
2008/55/EC*  and  Regulation  (EU)  No  904/2010  and  who  is  carrying  out  distance 
sales of goods from that third country. 

EN 

23 

   EN 

2.  The  Commission  shall  adopt  an  implementing  act  establishing  the  list  of  third  countries 
referred to in point (d) of paragraph 1 of this Article. That implementing act shall be adopted 
in accordance with the examination procedure referred to in Article 5 of Regulation (EU) No 
182/2011 and for this purpose the committee shall be the committee established by Article 58 
of Regulation (EU) No 904/2010. 

Article 369n 

For distances sales of goods imported from third territories or third countries on which VAT 
is declared under this special scheme, the chargeable event shall occur and VAT shall become 
chargeable at the time of supply. The goods shall be regarded as having been supplied at the 
time when the payment has been accepted. 

Article 369o 

The taxable person making use of this special scheme or an intermediary acting on his behalf, 
shall  state  to  the  Member  State  of  identification  when  he  commences  or  ceases  his  activity 
under this special scheme, or changes that activity in such a way that he no longer meets the 
conditions necessary for use of this special scheme. That information shall be communicated 
electronically. 

Article 369p 

1 
The  information  which  the  taxable  person  not  making  use  of  an  intermediary  must 
provide  to  the  Member  State  of  identification  before  he  commences  the  use  of  this  special 
scheme shall contain the following details: 

(a) 

(b) 

(c) 

(d) 

name; 

postal address; 

electronic address and websites; 

VAT identification number or national tax number. 

2. 
The  information  which  the  intermediary  must  provide  to  the  Member  State  of 
identification before he commences the use of this special scheme on behalf of one or several 
taxable persons shall contain the following details: 

(a) 

(b) 

(c) 

(d) 

(e) 

name; 

postal address; 

electronic address and websites; 

VAT identification number; 

a  list  of  taxable  persons  which  he  represents,  together  with  their  postal  address, 
electronic address and websites, VAT identification number or national tax number. 

3. 
Any  taxable  person  making  use  of  this  special  scheme  or  where  applicable  his 
intermediary shall notify the Member State of identification of any changes in the information 
provided. 

EN 

24 

   EN 

Article 369q 

1. The Member State of identification shall allocate to the taxable person making use of this 
special scheme an individual VAT identification number and shall notify him of that number 
by electronic means.  

2. The Member State of identification shall allocate to an intermediary acting on behalf of a 
taxable  person  making  use  of  this  special  scheme  an  individual  VAT  identification  number 
and  shall  notify  him  of  that  number  by  electronic  means.  Where  an  intermediary  acts  on 
behalf  of  more  than  one  taxable  person  that  identification  number  shall  apply  for  all  his 
activities under this scheme. 

3. The VAT identification number allocated under paragraphs 1 and 2 shall be used only for 
the purposes of this special scheme. 

Article 369r 

The  Member  State  of  identification  shall  exclude  the  taxable  person  from  the 

1. 
identification register in the following cases: 

(a) 

(b) 

(c) 

(d) 

if he notifies the Member State of identification that he no longer carries out distance 
sales of goods imported from third territories or third countries; 

if  it  may  otherwise  be  assumed  that  activities  of  distance  sales  of  goods  imported 
from third territories or third countries have ceased; 

if he no longer meets the conditions necessary for use of this special scheme; 

if he persistently fails to comply with the rules relating to this special scheme. 

The  Member  State  of  identification  shall  exclude  the  intermediary  from  the 

2. 
identification register in the following cases: 

(a) 

(b) 

(c) 

if  for  a  period  of  two  consecutive  calendar  quarters  he  has  not  acted  as  an 
intermediary on behalf of a taxable person making use of this special scheme; 

if he no longer meets the other conditions necessary for acting as an intermediary; 

if he persistently fails to comply with the rules relating to this special scheme. 

Article 369s 

The  taxable  person  making  use  of  this  special  scheme  or  his  intermediary  shall  submit  by 
electronic  means  to  the  Member  State  of  identification  a  VAT  return  for  each  calendar 
quarter,  whether  or  not  distance  sales  of  goods  imported  from  third  territories  or  third 
countries have been carried out. The VAT return shall be submitted within 30 days following 
the end of the tax period covered by the return. 

Where  a  VAT  return  has  been  submitted  in  accordance  with  the  first  paragraph,  Member 
States shall not impose, for VAT purposes, any additional obligation or other formality upon 
importation. 

Article 369t 

1. 
The VAT return shall show the VAT identification number referred to in Article 369q 
and, for each Member State of consumption in which VAT is due, the total value, exclusive of 
VAT, of distance sales of goods imported from third territories  or  third countries for which 
VAT  has  become  chargeable  during  the  tax  period  and  total  amount  per  rate  of  the 

EN 

25 

   EN 

corresponding  VAT.  The  applicable  rates  of  VAT  and  the  total  VAT  due  must  also  be 
indicated on the return. 

2. 
Where  any  amendments  to  the  VAT  return  are  required  after  its  submission,  such 
amendments  shall  be  included  in  a  subsequent  return  at  the  latest  within  three  years  of  the 
date on which the initial return was required to be submitted pursuant to Article 369s.  

3. 
An intermediary appointed by more than one taxable person making use of this special 
scheme shall not be required to specify in the VAT return the supplies made by each of the 
taxable persons for whose payment of the VAT he is liable for. 

1. 

The VAT return shall be made out in euro. 

Article 369u 

Member States which have not adopted the euro may require the VAT return to be made out 
in  their  national  currency.  If  the  supplies  have  been  made  in  other  currencies,  the  taxable 
person  making  use  of  this  special  scheme  or  his  intermediary  shall,  for  the  purposes  of 
completing the VAT return, use the exchange rate applying on the last date of the tax period. 

2. 
The  conversion  shall  be  made  by  applying  the  exchange  rates  published  by  the 
European Central Bank for that day, or, if there is no publication on that day, on the next day 
of publication. 

Article 369v 

The taxable person making use of this special scheme or his intermediary shall pay the VAT, 
making  reference  to  the  relevant  VAT  return  at  the  latest  at  the  expiry  of  the  deadline  by 
which the return must be submitted.  

Payment  shall  be  made  to  a  bank  account  denominated  in  euro,  designated  by  the  Member 
State  of  identification.  Member  States  which  have  not  adopted  the  euro  may  require  the 
payment to be made to a bank account denominated in their own currency. 

Article 369w 

The  taxable  person  making  use  of  this  special  scheme  may  not,  in  respect  of  his  taxable 
activities  covered  by  this  special  scheme,  deduct  VAT  incurred  in  the  Member  States  of 
consumption pursuant to Article 168 of this Directive. Notwithstanding point (1) of Article 1 
of Directive 86/560/EEC and point (1) of Article 2 and Article 3 of Directive 2008/9/EC, the 
taxable person in question shall be refunded in accordance with those Directives. Article 2(2) 
and (3) and Article 4(2) of Directive 86/560/EEC shall not apply to refunds relating to goods 
covered by this special scheme. 

If the taxable person making use of this special scheme is registered for VAT purposes in the 
Member State of identification for other activities not covered by this special scheme, he shall 
deduct VAT in respect of his taxable activities which are covered by this special scheme in 
the VAT return to be submitted pursuant to Article 250. 

Article 369x 

1. 
The  taxable  person  making  use  of  this  special  scheme  shall  keep  records  of  the 
transactions covered by this special scheme. An intermediary shall keep records for each of 
the taxable persons he represents. Those records must be sufficiently detailed to enable the tax 
authorities of the Member State of consumption to verify that the VAT return is correct. 

EN 

26 

   EN 

The  records  referred  to  in  paragraph  1  must  be  made  available  electronically  on 

2. 
request to the Member State of consumption and to the Member State of identification. 

The Member State of identification shall determine the period throughout which those records 
shall be kept by the taxable person not established within the Community. 

_________________ 
* 

Council Directive 2008/55/EC of 26 May 2008 on mutual assistance for the recovery 
of  claims  relating  to  certain  levies,  duties,  taxes  and  other  measures  (OJ  L  150, 
10.6.2008, p. 28).' 

(30) In Title XII, the following Chapter 7 is added: 

Special arrangements for declaration and payment of import VAT 

’CHAPTER 7 

Article 369y 

Where  the  person  for  whom  the  imported  goods  in  consignments  of  an  intrinsic  value  not 
exceeding EUR 150 are destined does not opt for the application of the standard arrangements 
for importation of goods, including for the application of a reduced VAT rate in accordance 
with  Article  94(2),  the  Member  State  of  importation  shall  permit  the  person  presenting  the 
goods to customs within the territory of the Community to make use of special arrangements 
for  declaration  and  payment  of  import  VAT  in  respect  of  goods  for  which  the  dispatch  or 
transport ends in that Member State.  

Article 369z 

1. 

(a) 

(b) 

For the purpose of this special arrangement, the following shall apply: 

the  person  for  whom  the  goods  are  destined  shall  be  liable  for  the  payment  of  the 
VAT; 

the person presenting the goods to customs within the territory of the Community shall 
be  responsible  for  collecting  the  VAT  from  the  person  for  whom  the  goods  are 
destined. 

2. 
Member  States  shall  provide  that  the  person  presenting  the  goods  to  customs  within 
the  territory  of  the  Community  takes  appropriate  measures  to  ensure  that  the  correct  tax  is 
paid by the person for whom the goods are destined.  

By way of derogation from Article 94(2), the standard rate of VAT applicable in the Member 
State of importation shall be applicable when using this special arrangement.  

Article 369za 

Article 369zb 

1. 
Member States shall allow that the VAT collected under this special arrangement be 
reported  electronically  in  a  monthly  declaration.  The  declaration  shall  show  the  total  VAT 
collected during the relevant calendar month. 

EN 

27 

   EN 

Member States shall require that the VAT referred to in paragraph 1 is payable by the 

2. 
end of the month following the importation.  

3. 
Member  States  shall  ensure  that  the  persons  making  use  of  this  special  arrangement 
shall keep records of the transactions covered by this special arrangement for a period of time 
to  be  determined  by  the  Member  State  of  importation.  Those  records  must  be  sufficiently 
detailed to  enable the tax authorities of the Member  State of consumption to  verify that  the 
VAT declared is correct and be made available electronically on request to the Member State 
of importation.'  

Article 3 

Amendment to Directive 2009/132/EC 

With effect from 1 January 2021, Title IV of Directive 2009/132/EC is deleted. 

Article 4 

1. 
Member States shall adopt and publish, by 31 December 2017 at the latest, the laws, 
regulations and administrative provisions necessary to comply with Article 1 of this Directive. 
They shall forthwith communicate to the Commission the text of those provisions. 

Member  States  shall  adopt  and  publish,  by  31  December  2020  at  the  latest,  the  laws, 
regulations  and  administrative  provisions  necessary  to  comply  with  Articles  2  and  3  of  this 
Directive. They shall forthwith communicate to the Commission the text of those provisions. 

They shall apply the provisions necessary to comply with Article 1 of this Directive from 1 
January 2018. 

They shall apply the provisions necessary to comply with Articles 2 and 3 of this Directive 
with from 1 January 2021. 

When Member States adopt those provisions, they shall contain a reference to this Directive 
or be accompanied by such a reference on the occasion of their official publication. Member 
States shall determine how such reference is to be made. 

Member States shall communicate to the Commission the text of the main provisions 

2. 
of national law which they adopt in the field covered by this Directive. 

Article 5 

Entry into force 

This Directive shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 6 

Addressees 

This Directive is addressed to the Member States. 

Done at Brussels, 

EN 

For the Council 
The President 

28 

   EN