Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC as regards the introduction of the detailed technical measures for the operation of the definitive VAT system for the taxation of trade between Member States
Date: 2018-05-25
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: European tax cooperation, VAT, administrative formalities, business tax, carriage of goods, delivery, intra-EU trade, provision of services, tax harmonisation, tax system

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 25.5.2018 COM(2018) 329 final 2018/0164 (CNS)  Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC as regards the introduction of the detailed technical measures for the operation of the definitive VAT system for the taxation of trade between Member States  
 
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

As  the  date  of  1st  January  1993  for  the  launch  of  the  single  market  approached,  it  became 
obvious that a definitive system for taxing transactions of goods could not be put in place in 
time  to  allow  for  the  free  movement  of  goods.  Nevertheless,  as  of  1  January  1993  all  tax 
controls on the internal borders of the European Community disappeared. Traders no longer 
became liable for value added tax (VAT) when their goods crossed between Member States. 
To  achieve  this  ending  of  tax  controls  at  borders,  agreement  had  been  necessary  on  major 
changes to the system for applying VAT to intra-Community transactions. The Commission’s 
original proposals – outlined in the Single Market White Paper of 1985 - were the subject of 
inconclusive debate until October 1989, when it was realised that the time was then too short 
for their implementation by January 1993. Instead, a less ambitious alternative was devised, 
making  possible  the  ending  of  border  tax  controls  whilst  retaining  key  features  of  then 
existing arrangements. 

It is this alternative, transitional VAT system that was put in place and still remains more than 
25  years  later.  Those  arrangements,  as  far  as  Business-to-Business  (B2B)  transactions  on 
goods  are  concerned,  split  the  cross-border  movement  of  goods  into  two  different 
transactions: an exempt  supply in the Member  State of departure of the goods and an intra-
Community acquisition taxed in the Member State of destination. These rules were regarded 
as temporary and are not without drawbacks since allowing goods to be bought free of VAT 
increases  the  opportunity  for  fraud,  while  the  inherent  complexity  of  the  system  is  not 
favourable to cross-border trade. 

Following broad consultation, the Commission adopted its Action Plan on VAT – Towards a 
single EU VAT area – Time to decide1 (VAT Action Plan). The Commission announced, inter 
alia, its intention to adopt a definitive VAT system for intra-Union cross-border trade based 
on  the  principle  of  taxation  in  the  Member  State  of  destination  in  order  to  create  a  robust 
single European VAT area. The implementation of the VAT Action Plan was also part of the 
Fair  Taxation  package  announced  in  President  Juncker’s  letter  of  intent  accompanying  the 
State of the Union 20172. 

The  Commission  subsequently  adopted  a  Communication  on  the  follow-up  to  the  VAT 
Action Plan Towards a single EU VAT area – Time to act3 in which it spelled out the gradual 
steps to be taken in the move towards that single European VAT area. 

Besides the change to  the  definitive VAT system for cross-border  trade, this  move  includes 
two  other  proposals  to  modify  the  VAT  Directive:  one  as  regards  VAT  rates4  and  one  as 

1 
2 

3 
4 

COM(2016) 148 final. 

State of the Union 2017. Letter of intent to President Antonio Tajani and to Prime Minister Jüri Ratas, 
13 September  2017,  accessible  at  https://ec.europa.eu/commission/sites/beta-political/files/state-union-
2017-brochure_en.pdf. See also Annex I to the Commission Work Programme 2017, COM(2016) 710 
final, Strasbourg, 25.10.2016, p. 3, accessible at 
https://ec.europa.eu/info/sites/info/files/cwp_2017_annex_i_en.pdf. 

COM(2017) 566 final. 
COM(2018) 20 final. 

EN 

1 

  EN 

 
                                                 
 
regards  the  special  scheme  for  small  enterprises5.  In  addition,  it  includes  a  proposal  for  a 
Council Regulation on combating fraud in the field of VAT6. 

As regards the change towards a definitive VAT system based on the principle of taxation in 
the  Member  State  of  destination  a  gradual  two-step  approach  was  announced:  a  first  step 
settling intra-Union B2B supplies of goods and a second step covering supplies of services. 

The  first  step  was  further  divided  into  two  sub-steps.  The  first  sub-step,  presented 
simultaneously  with  the  Communication,  was  a  legislative  proposal  which  outlined  the 
cornerstones for a simpler and fraud-proof definitive VAT system for intra-Union trade7.  

The current proposal represents the second sub-step. It contains the detailed arrangements to 
put these cornerstones in place for intra-Union B2B supplies of goods. 

The present proposal will need to be complemented by a proposal for amending Regulation 
(EU)  904/2010  on  Administrative  Cooperation  in  the  field  of  value  added  tax.  The  latter 
proposal  is  of  a  technical  nature  as  it  would  consist  in  aligning  the  cooperation  between 
Member  States  to  the  proposed  changes  to  the  VAT  system  for  cross-border  supplies  of 
goods.  This  proposal  will  be  made  sufficiently  in  time  for  allowing  its  adoption  and 
implementation at the date of entry into force of the present proposal. 

• 

Consistency with existing policy provisions in the policy area 

The introduction of a definitive system for intra-Union supplies of goods is one of the main 
elements  of  the  VAT  Action  Plan.  This  proposal  replaces  the  transitional  arrangements, 
applicable since 1 January 1993, by a definitive VAT system for intra-Union B2B trade under 
which  domestic  and  cross-border  transactions  of  goods  will  be  treated  in  the  same  way. 
Furthermore, the definitive VAT system will create a robust single European VAT area which 
can support a deeper and fairer single market that helps to boost jobs, growth, investment and 
competitiveness. 

• 

Consistency with other Union policies 

The creation of a simple, modern and fraud-proof VAT system is one of the fiscal priorities 
set out by the Commission8. 

Reducing regulatory burden, particularly for Small and Medium Enterprises (SMEs), is also 
an important objective highlighted in the Union’s growth strategy9. 

The proposed initiative and its objectives are consistent with the Union SME policy as set out 
by  the  Small  Business  Act  (SBA)10,  in  particular  principle  VII  on  helping  SMEs  to  benefit 
more from the opportunities offered by the Single Market. In addition, it is consistent with the 

5 
6 

7 
8 

9 

10 

COM(2018) 21 final. 
Amended  proposal  for  a  Council  Regulation  amending  Regulation  (EU)  No  904/2010  as  regards 
measures  to  strengthen  administrative  cooperation  in  the  field  of  value  added  tax  (COM(2017)  706 
final). 
COM(2017) 569 final. 
Annual  Growth  Survey  2017;  see:  https://ec.europa.eu/info/publications/2017-european-semester-
annual-growth-survey_en 
Europe 2020 – A strategy for smart, sustainable and inclusive growth; see: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:2020:FIN:EN:PDF 
Communication  from  the  Commission  to  the  Council,  the  European  Parliament,  the  European 
Economic and Social Committee and the Committee of the Regions - “Think Small First” – A “Small 
Business Act” for Europe (COM(2008) 394 final). 

EN 

2 

  EN 

 
                                                 
Single market strategy (SMS)11 and the objectives of the Regulatory Fitness and Performance 
programme (REFIT). 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  Directive  amends  the  VAT  Directive  on  the  basis  of  Article 113  of  the  Treaty  on  the 
Functioning  of  the  European  Union.  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 (for non-exclusive competence)  

According to the principle of subsidiarity, as set out in Article 5(3) of the Treaty on European 
Union,  action  at  Union  level  may  only  be  taken  if  the  envisaged  aims  cannot  be  achieved 
sufficiently by the Member States alone and can therefore, by reason of the scale or effects of 
the proposed actions, be better achieved by the Union. 

VAT  rules  for  cross-border  Union  trade  can,  by  their  nature,  not  be  decided  by  individual 
Member  States  since,  inevitably,  businesses  located  in  more  than  one  Member  State  are 
involved. Moreover, VAT is a tax harmonised at Union level and therefore any initiative to 
introduce the definitive VAT system for cross-border supplies of goods requires a proposal by 
the Commission to amend the VAT Directive12. 

• 

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 
problems such as fraud or complexity without a proposal to amend the VAT Directive. 

• 

Choice of the instrument 

A Directive is proposed in view of amending the VAT Directive. 

3. 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

A  retrospective  evaluation  of  elements  of  the  Union  VAT  system  was  conducted  by  an 
external  consultant  in  2011  and  its  findings  have  been  used  as  a  starting  point  to  the 
examination of the current VAT system13. 

11 

12 

13 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  regions  –  "Upgrading  the  Single  Market: 
more opportunities for people and business" (COM(2015) 550 final). 
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). 
Institute  for  Fiscal  Studies  (project  leader),  2011,  A  retrospective  evaluation  of  elements  of  the  EU 
VAT system: 
http://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/common/publications/stu
dies/report_evaluation_vat.pdf 

EN 

3 

  EN 

 
 
                                                 
• 

Stakeholder consultations 

An extensive stakeholders consultation process took place in the context of the preparation of 
the  legislative  proposal  COM(2017)  569  final  which  outlines  the  cornerstones  of  the 
definitive VAT arrangements. Since that proposal was adopted, a small amount of feedback, 
supporting  the  overall  objective  of  creating  a  robust  single  European  VAT  area,  has  been 
received  via  the  "Better  Regulation"  portal  and  from  events  held  with  trade  and  business 
associations. 

• 

Collection and use of expertise 

The  expertise  collected  by  way  of  several  studies  referred  to  in  COM(2017)569  final  of  4 
October 2017 for setting the cornerstones of the definitive VAT system covered the needs for 
the present proposal. 

From  these  studies,  the  study  on  Implementing  the  ‘destination  principle’  to  intra-EU  B2B 
supplies of goods14 was particularly relevant for this proposal. 

• 

Impact assessment 

A  back  to  back  impact  assessment  and  evaluation  was  carried  out  which  covered  both  the 
setting  of  the  cornerstones  of  the  definitive  VAT  system  and  the  detailed  arrangements  for 
putting these cornerstones into place; see SWD(2017) 325 final and SWD(2017) 326 final of 
4 October 2017. The preferred option, chosen in that impact assessment, would reduce cross-
border  VAT  fraud  by  up  to  EUR  41  billion  per  annum  and  reduce  compliance  costs  for 
businesses by EUR 938 million per annum. 

The  impact  assessment  was  considered  by  the  Regulatory  Scrutiny  Board  on  14 July  2017. 
The Board gave a positive opinion to the Impact Assessment with some recommendations, in 
particular on the link of the proposal to other elements of the VAT Action Plan, the need for a 
staged approach and the  concept  of certified taxable  person, that have been taken on board. 
The opinion of the Board and the recommendations are mentioned in Annex 1 to SWD(2017) 
325 final. 

The fundamental nature of the proposed changes means that all businesses will be impacted. 
They  address  the  problems  of  fraud  and  complexity  of  the  current  transitional  VAT  system 
and the related compliance costs for all businesses. Simplifications such as the use of the One 
Stop Shop are also available to SMEs but they are not specifically targeted to that category of 
taxable persons. 

The  difficulties  of  SMEs,  in  particular  when  trading  cross-border,  are  already  addressed 
through  a  specific  proposal  which  was  presented  on  18  January  201815.  That  proposal  is 
together with the present proposal an integral part of the VAT Action plan. 

• 

Regulatory fitness and simplification 

As  is  indicated  in  the  Impact  Assessment,  the  compliance  costs  per  euro  of  turnover  for 
businesses  doing  intra-Union  cross  border  trade  have  been  established  to  be  11%  higher 
compared with the corresponding VAT compliance costs per euro of turnover for businesses 
engaged solely in domestic trade. 

14 

15 

EY, 2015; see: 
https://ec.europa.eu/taxation_customs/sites/taxation/files/docs/body/ey_study_destination_principle.pdf 
COM(2018)21 final. 

EN 

4 

  EN 

 
                                                 
In view of assessing the impact on smaller businesses, a distinction has been made between  
SMEs that are engaged predominantly in domestic trade and SMEs that are already engaged 
in both domestic and intra-EU trade.  

For this second category of SMEs, the proposed changes, and in particular the broadening of 
the scope of the one stop shop mechanism, could result in an average annual reduction of up 
to 17% compared to their current VAT compliance costs. 

For  all  businesses,  the  monetary  impact  of  the  implementation  is  estimated  to  increase 
business  costs,  such  as  costs  for  updating  the  accounting  and  invoicing  software  and  for 
professional training, by EUR 457 million in the year of implementation because of the need 
for business to adapt their internal procedures to the new rules, but results in a net business 
decrease  of  VAT  compliance  costs  by  EUR 938 million  annually  after  the  year  of 
implementation. 
However,  the  Impact  Assessment  accompanying  the  specific  proposal  on  SMEs16,  which  as 
indicated  above  complements  the  present  proposal,  should  result  in  a  reduction  in  VAT 
compliance  costs  of  up  to  18%  (or  EUR  11.9  billion)  for  SMEs  and  an  increase  in  SMEs’ 
cross-border trading activity of about 13%. 

4. 

BUDGETARY IMPLICATIONS 

The  proposal  will  have  no  negative  implications  for  the  Union  budget.  Since  the  proposal 
would reduce cross-border VAT fraud by up to EUR 41 billion per annum, the total annual 
VAT revenue collected by each Member State, which is the starting point for the calculation 
of the VAT-based own resource, should increase. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

In  its  Communication  of  October  2017  on  the  follow-up  to  the  VAT  Action  Plan,  the 
Commission  indicated  that  the  implementation  of  the  second  step  (covering  cross-border 
services)  in  the  gradual  move  to  the  definitive  VAT  system  would  be  proposed  by  the 
Commission  after  due  monitoring  of  the  implementation  of  the  first  step  (completed  by  the 
current  proposal),  the  functioning  of  which  in  terms  of  robustness  against  fraud,  of 
compliance costs for businesses and of effectiveness in the management of the system by the 
tax authorities, would be evaluated by the Commission 5 years after its entry into force. 

To  that  purpose,  the  Commission  will  seek  to  obtain  from  Member  States  any  relevant 
information  as  regards  the  level  and  the  evolution  of  the  administrative  costs  and  of  fraud. 
The  Commission  will  also  seek  to  collect  input  from  all  relevant  business  stakeholders  as 
regards the level and the evolution of their compliance costs. 

• 

Explanatory documents (for directives) 

The proposal does not require explanatory documents on the transposition. 

• 

Detailed explanation of the specific provisions of the proposal 

The main substantial changes proposed to the VAT Directive are explained hereafter by topic. 
These  substantial  changes  do  result  in  a  number  of  subsequent  amendments  of  a  technical 
nature in the VAT Directive. 

16 

SWD(2018)9 final and SWD(2018)11 final. 

EN 

5 

  EN 

 
                                                 
Certain  changes  concern  provisions  for  which  amendments  are  already  proposed  in  the 
proposal  COM(2017)569  final  of  4  October  2017.  That  proposal  provides,  in  response  to  a 
request from the Council, for improvements to the current VAT system to be made whilst the 
work  on  the  definitive  VAT  arrangements  for  intra-Union  trade  is  ongoing.  The  proposed 
changes for the so-called "quick fixes" remain entirely valid since they should enter into force 
well ahead of the present proposal. 

Nevertheless, the subsequent introduction of the definitive arrangements for B2B supplies of 
goods  as  foreseen  in  the  present  proposal  does  require  the  adaptation  to  these  new 
arrangements  of  the  provisions  contained  in  the  previous  proposal  regarding  the  concept  of 
certified taxable person, call-off stocks or chain transactions. 

In  addition,  since  the  objective  of  the  present  proposal  is  to  introduce  the  definitive 
arrangements  for  B2B  supplies  of  goods,  the  proposed  Article  402  which  sets  out  the 
cornerstones for the taxation of trade between Member States, covering goods and services, 
needs  to  be  adapted  to  the  fact  that  these  cornerstones  are  partially  put  into  effect  by  this 
proposal. 

In addition, this proposal provides the opportunity for replacing the outdated notions of "Intra-
Community"  or  "Community"  by  the  notions  of  "Intra-Union"  and  "Union"  in  a  range  of 
provisions of the VAT Directive. 

The  recent  Commission  proposal  as  regards  the  special  scheme  for  small  enterprises 
(COM(2018) 21 final, of 18 January 2018) also requires a few technical updates such as the 
abovementioned replacement  in the light of the present proposal. To avoid ambiguity, these 
changes are not included in the present proposal but shall be handled during the negotiations 
in Council. 

Subject matter and scope of the tax: Articles 2 to 4 

As indicated above, the current VAT system splits cross-border B2B supply of goods into two 
different transactions for VAT purposes: an exempt supply in the Member State of departure 
of the goods and an intra-Community acquisition taxed in the Member State of destination. 

It is  proposed that a cross-border B2B supply of goods  within the Union will give rise  to a 
single  transaction  for  VAT  purposes:  an  intra-Union  supply  of  goods.  Consequently,  the 
concept of an intra-Community acquisition of goods as a transaction subject to VAT is to be 
removed from Articles 2 to 4. 

Since an intra-Community acquisition of goods would no longer exist as a transaction subject 
to VAT, all subsequent provisions within the VAT Directive related to that concept need to be 
deleted and to be reviewed in the light of the proposed mechanism for taxing the cross-border 
B2B trade in goods within the Union. 

The concept of intra-Union supplies of goods: Article 14 

It is proposed to add a point (3) to paragraph 4 of Article 14 which contains a definition of 
intra-Union  supplies  of  goods.  'Intra-Union  supply  of  goods'  shall  mean  a  supply  of  goods 
carried out by a taxable person for a taxable person or for a non- taxable legal person whereby 
the goods are dispatched or transported, by or on behalf of the supplier or the person acquiring 
the goods within the Union, from one Member State to another Member State. 

Certain supplies enumerated in paragraph 5 of Article 14 shall not be regarded as intra-Union 
supplies,  even  when  the  two  conditions  for  qualifying,  namely  as  regards  the  status  of  the 

EN 

6 

  EN 

 
customer  and  as  regards  the  transport  of  the  goods,  would  be  fulfilled.  This  is  the  case  for 
supplies of goods with assembly or installation, with or without a trial run, supplies of goods 
that are exempt under Article 148 or 151 and supplies by a flat-rate farmer defined in Article 
295. 

The rules on the place of supply of goods: Article 35a 

The rules on the place of supply of taxable transactions determine the Member State in which 
VAT is due.  

The  general  rules  for  determining  the  place  of  supply  of  goods  without  transport  (the  place 
where  the  goods  are  located  at  the  time  the  supply  takes  place)  and  the  place  of  supply  of 
goods  with  transport  (the  place  where  the  goods  are  located  when  dispatch  of  the  goods  or 
transport begins) remain. 

However, a new exception to the general rule is proposed in Article 35a according to which 
the place of supply of an intra-Union supply of goods 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. 

The combination of the definition of intra-Union supplies of goods in Article 14(4)(3) and the 
new proposed place of supply rule in Article 35a ensures the taxation of a cross-border B2B 
supply of goods within the Union in the Member State of destination. 

Under  the  current  VAT  rules,  cross-border  supplies  to  taxable  persons  who  carry  out  only 
supplies of goods  or  services in  respect of which VAT is not  deductible, to taxable persons 
subject  to  the  common  flat-rate  scheme  for  farmers  and  to  non-taxable  legal  persons  are, 
below a certain threshold and when the acquirer did  not  opt  for taxation at destination,  still 
taxed at the Member State of supply (origin). 

This  exception  adds  to  the  complexity  of  the  current  arrangements.  It  has  also  lost  of  its 
relevance since the threshold has never been reviewed since its implementation in 1993. This 
exception  is  therefore  not  retained  also  because,  contrary  to  the  current  situation,  under  the 
proposed rules the supplier will take care of the reporting and payment obligations related to 
these supplies. 

Taxation at destination is thereby ensured for all intra-Union B2B supplies of goods. The only 
exception  are  the  supplies  made  under  the  margin  scheme  provided  for  in  Articles  311  and 
onwards (Article 35c). Further taxation at destination will not apply either for the cross border 
supplies of goods that are exempt under Article 148 or 151 and for the cross border supplies 
of  goods  by  a  flat-rate  farmer  defined  in  Article  295  since,  as  indicated  above,  they  are 
excluded from the notion of intra-Union supplies of goods. 

Chargeability of the tax: Article 67 

An amendment to Article 67 is proposed that determines a single rule for the chargeability of 
VAT on intra-Union supplies. According to this rule VAT shall become chargeable on issue 
of the invoice, or on expiry of the time limit referred to in the first paragraph of Article 222 if 
no invoice has been issued by that time (fifteenth day of the month following that in which the 
chargeable event occurs).  

It  is  further  specified  that  those  provisions  allowing  Member  States  to  determine,  in  certain 
cases, different moments of chargeability of VAT shall not apply with respect to intra-Union 

EN 

7 

  EN 

 
supplies of goods. In absence of this specification the supplier making intra-Union supplies in 
several Member States would have to comply with the options taken by the different Member 
States of arrival of the goods, which would increase complexity. 

Person liable for payment of VAT: Articles 193, 194a, 199a and 199b 

The  principle  laid  down  in  Article  193  remains  that  VAT  shall  be  payable  by  any  taxable 
person  carrying  out  a  taxable  supply  of  goods  or  services,  unless  in  other  provisions, 
enumerated in that same Article 193, it is stipulated that VAT is payable by another person. 

As an exception to Article 193, a new Article 194a is proposed according to which VAT shall 
be  payable  by  the  person  to  whom  the  goods  are  supplied  insofar  he  is  a  certified  taxable 
person as defined in Article 13a if the goods are supplied by a taxable person not established 
within the territory of the  Member  State in  which the VAT is  due. The concept  of certified 
taxable person was included in the Commission's proposal of 4 October 201717. 

As  regards  intra-Union  supplies  of  goods,  the  combination  of  the  rules  of  Articles  193  and 
194a means that the supplier is in principle liable for the payment of the VAT in the Member 
State of arrival of the goods except where the supplier is not established in the Member State 
of taxation and the customer is a certified taxable person according to Article 13a. In the latter 
case, the customer will pay the VAT due by way of reverse charge in the Member State of 
arrival of the goods. 

Article 199a allows Member States to provide until 31 December 2018, for certain supplies 
specified  in  this  provision,  that  the  person  liable  for  payment  of  VAT  shall  be  the  taxable 
person to whom these supplies are made. 

In the recently adopted report on the effects of Article 199a and 199b on combatting fraud18, 
the  Commission  indicated  that  it  will  present  an  appropriate  legislative  proposal  for 
prolonging the existing measures. This will be a separate proposal that will cover the period 
from 1 January 2019 until 30 June 2022, given that the envisaged date of entry into force of 
the present proposal is 1 July 2022.  

The  amendments  of  Article  199a  proposed  hereafter  relate  to  the  period  from  1  July  2022 
onwards. They concern the timespan and the scope of the supplies covered. 

As regards the timespan, it is proposed to extend the option to make use of this provision until 
31 December 2028. The other dates laid down in this provision are adapted accordingly. 

As regards the supplies to be included in this provision, it is obvious that the proposed content 
has  to  be  assessed  in  the  context  of  the  overall  change  of  the  taxation  of  the  cross-border 
movement of B2B supplies of goods. The proposed changes intend to provide a fundamental 
response to cross-border fraud relating to transactions in goods and should therefore make the 
existing  patchwork  of  temporary  reverse  charge  measures  in  Article  199a,  to  the  extent  to 
which they also aim to give a response to this kind of fraud, redundant. The transactions that 
remain  covered  by  the  temporary  measures  of  Article  199a  are  therefore  limited  to  those 
services previously covered in this provision. 

17 
18 

COM(2017)569 final, 4.10.2017. 
Report  from  the  Commission  to  the  Council  and  the  European  Parliament  on  the  effects  of  Articles 
199a  and  199b  of  Council  Directive  2006/112/EC  on  combatting  fraud  (COM(2018)  118  final  of 
8.3.2018). 

EN 

8 

  EN 

 
                                                 
A comparable approach is suggested for the amendment of Article 199b. This provision lays 
down  the  rules  governing  the  Quick  Reaction  Mechanism  which  allows  Member  States  in 
very specific circumstances to designate the recipient of the goods and services as the person 
liable for VAT. For the same reason as in Article 199a, supplies of goods would no longer be 
covered by the Quick Reaction Mechanism. 

Identification: Article 214 

Intra-Union supplies of goods, defined in Article 14, paragraph 4, point 3 include, inter alia, 
supplies made by a taxable person to a non-taxable legal person.  

An amendment to Article 214 is therefore proposed according to which Member States shall 
take the measures necessary to ensure that a non-taxable legal person who is the recipient of 
an intra-Union supply is identified by means of an individual number.  

Recapitulative statements: Articles 262 to 271 

Intra-Union supplies of goods should under the proposed system no longer be included in the 
recapitulative  statements.  The  principle  of  VAT  being  charged  by  the  supplier  on  the  intra-
Union  supply  re-installs  the  self-policing  character  of  VAT.  Consequently,  ensuring  an 
administrative  follow-up  to  the  physical  flow  of  goods  through  the  recapitulative  statement 
within the Union is no longer justified.  

When the recipient of an intra-Union supply is a certified taxable person, goods will continue 
to circulate VAT free within the Union. Nevertheless, it would be incoherent with the concept 
of a certified taxable person, which is considered to be a reliable taxable person, to maintain 
the obligation of submitting recapitulative statements for such transactions. 

The obligation to submit recapitulative statements is therefore only maintained for services. 

Member  States  may  introduce,  under  certain  conditions,  special  measures  to  simplify  the 
obligation  to  submit  recapitulative  statements.  It  is  proposed  to  simplify  the  procedure  for 
taking up this option, by replacing the requirement of a unanimous decision from the Council 
by a consultation of the VAT Committee. 

Special schemes for non-established taxable persons: Articles 358 to 369x 

Chapter  6  of  Title  XII  of  the  VAT  Directive  currently  contains  three  schemes  with  a 
distinctive scope, namely: 

– 

– 

– 

a special scheme for services supplied by taxable persons not established within the 
Union; 

a special scheme for intra-Union distance sales of goods and for services supplied by 
taxable persons within the Union but not in the Member State of consumption; 

a special scheme for distance sales of goods imported from third territories or third 
countries. 

The first and third schemes are only marginally affected by this proposal. 

In view of implementing the principle of a single registration scheme for declaration, payment 
and deduction of the tax, substantial changes to the second scheme are proposed.  

EN 

9 

  EN 

 
Taking into account the adoption by the Council of Directive (EU) 2017/2455 of 5 December 
201719, this second scheme will as of 1 January 2021 allow the taxable person registered for 
the  scheme  in  a Member  State (the Member  State  of  identification)  to  electronically  submit 
quarterly  mini  One  Stop  Shop  VAT  returns  detailing  supplies  of  services  and  intra-Union 
distance  sales  to  non-taxable  persons  in  other  Member  States  (the  Member  State(s)  of 
consumption),  along  with  the  VAT  due.  These  returns,  along  with  the  VAT  paid,  are  then 
transmitted  by  the  Member  State  of  identification  to  the  corresponding  Member  States  of 
consumption  via  a  secure  communications  network.  This  scheme  avoids  that  these  taxable 
persons  need  to  be  registered  for  VAT  in  each  Member  State  of  consumption.  The  current 
proposal provides for a further extension of this scheme. 

As regards the definitions used for the purposes of this scheme, a definition of 'Member State 
of  taxation'  is  added  in  Article  369a.  Member  State  of  taxation  means  the  Member  State  in 
which the supply of goods or services is deemed to take place. 

The  scope  of  transactions  covered  by  the  scheme,  set  out  in  Article  369b,  is  amended.  It  is 
proposed that the option to make use of the scheme should be available to any taxable person 
not  established  in  the  Member  State  of  taxation  in  relation  with  the  supplies  of  goods  and 
services  made  in  that  Member  State  for  which  he  is  liable  to  pay  value  added  tax.  It  will 
thereby  no  longer  be  limited  to  Business-to-Consumer  transactions  but  also  include  B2B 
transactions.  

It is proposed to make the scheme also available to taxable persons not established within the 
Union  under  the  condition  that  they  appoint  an  intermediary  which  is  established  in  the 
Union.  Comparable  to  what  is  already  foreseen  in  the  special  scheme  for  distance  sales  of 
goods  imported  from  third  territories  or  third  countries,  the  intermediary  is  the  person  that 
becomes liable for the payment of the VAT and for fulfilling the obligations laid down in the 
scheme in the name and on behalf of the non-EU established taxable person he represents. 

Considering the widening of the scope of transactions covered by the scheme, it is proposed 
to amend Article 369f by adding that taxable persons making use of the scheme shall submit 
monthly  One  Stop  Shop  VAT  returns  when  their  annual  EU  turnover  is  above  EUR 
2 500 000. 

Article 369g, which defines the content of the VAT return to be submitted under the scheme 
also needs to be reviewed. Currently, the information to be provided only relates to the value 
and the VAT due on supplies made by the taxable persons.  

Including the right for the taxable person to exercise the deduction of input VAT in the One-
Stop-Shop VAT return is only possible when some additional information is provided in that 
return and in particular: 

- the total amount of VAT that has become chargeable on supplies of goods and services for 
which the taxable person as recipient is liable to pay the tax and on the importation of goods 
where the Member State exercises the option under the second paragraph of Article 211; 

- the VAT for which deduction is made; 

- amendments relating to previous tax periods; 

- the net amount of the VAT to pay or to be refunded or credited. 

19 

Council  Directive  (EU)  2017/2455  of  5  December  2017  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 (OJ L 348, 29.12.2017, p. 7). 

EN 

10 

  EN 

 
                                                 
Since  deduction  will  be  made  on  the  VAT  returns  submitted  through  the  scheme,  an 
amendment to Article 369i is proposed which stipulates that the taxable person shall pay the 
sum of the net amounts of VAT (VAT due minus VAT deductible) due in each Member State 
of taxation. 

A  new  Article  369ia  is  proposed  defining  the  conditions  under  which  a  taxable  person  in  a 
credit position in a given Member State of taxation can obtain a refund of the credit from that 
Member  State.  Moreover,  a  new  Article  369ib  is  proposed  which  determines  the  conditions 
under  which  an  amount  to  be  refunded  to  the  taxable  person  in  the  Member  State  of 
identification can be used for the payment of VAT due in the Member State(s) of taxation. 

An amendment to Article 369j is proposed in order to determine the interaction between the 
right  to  deduct  under  the  special  scheme  and  the  refund  procedures  laid  down  in  Directive 
86/560/EEC20 for taxable persons not established in the Union and Directive 2008/9/EC21 for 
taxable  persons  established  in  the  Union.  This  provision  is  necessary  in  order  to  avoid 
potential  abuse  by  taxable  persons  that  would  exercise  a  right  to  deduct  under  the  special 
scheme and would submit a request for refund for the same amount of input VAT. 

In  principle  a  taxable  person  has  the  right  to  make  the  deduction  of  the  input  VAT  on  the 
VAT returns submitted through the scheme. However, when a taxable person making use of 
this special scheme does not make any supplies of goods and services covered by this special 
scheme for which VAT has become chargeable in a Member State of taxation in a given tax 
period, nor in the three preceding tax periods when he is submitting quarterly returns or in the 
eleven  preceding  tax  periods  when  he  is  submitting  monthly  returns,  no  deduction  of  VAT 
incurred may be made in that Member State of taxation in that VAT return. Instead of that, the 
taxable  person  should  claim  the  input  VAT  back  via  the  refund  procedure  in  the  Member 
State in which VAT was charged. 

Derogations: Articles 370 to 390c 

Chapter 1 of Title XIII of the VAT Directive contains a series of derogations which may be 
applied  until  the  adoption  of  the  definitive  arrangements.  For  those  States  which  were 
Member States on 1 January 1978, most of the derogations they may apply are spelled out in 
Annex X to the VAT Directive. As explained above, the present proposal is the first step in 
the  process  of  putting  the  definitive  system  of  taxation  of  intra-EU  trade  at  destination  into 
place. As part of this step, it is proposed to delete those derogations for which, if they were 
maintained, the proposed changes of the place of supply rules and of the designation of the 
person liable for payment of VAT would lead to complexity for the taxable persons and the 
tax administrations. 

In particular, the option to apply a derogation would be suppressed for goods that could be the 
object  of  intra-Union  supplies  (movable  goods).  In  that  case,  the  supplier  would  have  to 
know,  for  each  Member  State  in  which  these  intra-Union  supplies  take  place,  whether  that 
Member State made use of the derogation or not and, if so, which are the conditions applied 
by those Member States. 

20 

21 

Thirteenth Council Directive 86/560/EEC of 17 November 1986 on the harmonization 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 Community territory (OJ L 326, 21.11.1986, p. 40). 
Council  Directive  2008/9/EC  of 12  February  2008  laying down detailed rules for  the refund of value 
added  tax,  provided  for  in  Directive  2006/112/EC  to  taxable  persons  not  established  in  the  Member 
State of refund but established in another Member State (OJ L 44, 20.2.2008, p. 23). 

EN 

11 

  EN 

 
                                                 
2018/0164 (CNS) 

Proposal for a 

COUNCIL DIRECTIVE 

amending Directive 2006/112/EC as regards the introduction of the detailed technical 
measures for the operation of the definitive VAT system for the taxation of trade 
between Member States 

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)  When the Council adopted in 1967 the common system of value added tax (VAT) by 
means  of  Council  Directives  62/227/EEC3  and  67/228/EEC4,  the  commitment  was 
made to establish a definitive VAT system for the taxation of trade between Member 
States operating in a similar way as it would within a single Member State. Since the 
political  and  technical  conditions  were  not  ripe  for  such  a  system,  when  the  fiscal 
frontiers between Member States were abolished by the end of 1992 transitional VAT 
arrangements  were  adopted.  Council  Directive  2006/112/EC5,  which  is  currently  in 
force,  provides  that  these  transitional  rules  have  to  be  replaced  by  definitive 
arrangements based in principle on the taxation in the Member State of origin of the 
supply of goods or services. 
The  Council,  supported  by  the  European  Parliament6  and  the  Economic  and  Social 
Committee7, confirmed that an origin-based system was not achievable and invited the 

(2) 

1 
2 
3 

4 

5 

6 

7 

OJ C , , p. . 
OJ C , , p. . 
First  Council  Directive  67/227/EEC  of  11  April  1967 on  the  harmonisation  of  legislation  of  Member 
States concerning turnover taxes (OJ 71, 14.4.1967, p. 1301). 
Second Council Directive 67/228/EEC of 11 April 1967 on the harmonisation of legislation of Member 
States concerning turnover taxes — Structure and procedures for application of the common system of 
value added tax (OJ 71, 14.4.1967, p. 1303). 
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). 
European  Parliament  resolution  of  13 October  2011  on  the  future  of  VAT  (P7_TA(2011)0436) 
http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P7-TA-2011-
0436 
European Economic and Social Committee Opinion of 14 July 2011 on the ‘Green Paper on the future 
of  VAT  -  Towards  a  simpler,  more  robust  and  efficient  VAT  system’  http://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=celex:52011AE1168 

EN 

12 

  EN 

 
                                                 
(3) 

(4) 

Commission  to  proceed  with  in-depth  technical  work  and  a  broadly  based  dialogue 
with Member States to examine in detail the different possible ways to implement the 
destination principle8. 
The  Commission,  in  its  VAT  Action  Plan9,  sets  out  the  amendments  to  the  VAT 
system  that  would  be  necessary  in  order  to  develop  such  a  destination-based  system 
for intra-Union trade by means of the taxation of cross-border supplies. The Council 
subsequently reaffirmed the conclusions of that Action Plan and stated, inter alia, that 
in  its  view  the  principle  of  taxation  at  origin  as  envisaged  for  the  definitive  VAT 
system  should  be  replaced  by  the  principle  of  taxation  in  the  Member  State  of 
destination10. 

In order to achieve the objectives set out in the Commission’s VAT Action Plan, the 
rules  for  intra-Union  Business-to-Business  (B2B)  supplies  of  goods  should  be 
amended, in compliance with the staggered approach proposed by the Commission in 
its Communication of 4 October 2017 on the follow-up to the VAT Action Plan11.  

(5)  With a view to providing a more effective system for the taxation of intra-Union B2B 
supplies  of  goods  in  the  Member  State  of  destination,  it  is  necessary  to  abolish  the 
current  system  whereby  supplies  in  the  Member  State  of  departure  of  the  goods  are 
exempt  and  intra-Community  acquisitions  are  taxed  in  the  Member  State  of 
destination.  Since  the  exemption  for  such  supplies  and  the  concept  of  intra-
Community acquisition itself as a transaction subject to VAT are to be abolished, all 
related articles should be amended or deleted. 

(6) 

(7) 

(8) 

In order to ensure an equal treatment between domestic transactions and intra-Union 
transactions, the taxation for VAT purposes of intra-Union B2B transactions in goods 
should be premised on a single taxable event, namely an  intra-Union supply of goods. 

In view of ensuring that the principle of taxation at destination is applied as widely as 
possible, the definition of an intra-Union supply of goods should include, without any 
restriction by way of a threshold, a supply to a non-taxable legal person, a supply to an 
exempt taxable person, a supply to a taxable person under the special scheme for small 
enterprises and a supply to a farmer under the flat-rate scheme. 

The  concepts  of  intra-Union  distance  sales  of  goods  and  of  distance  sales  of  goods 
imported from third territories or third countries should be amended in order to avoid 
the situation whereby certain of these supplies would be covered by the new definition 
of intra-Union supply. 

(9)  With a view of ensuring the smooth functioning of the VAT system within the internal 
market,  certain  supplies  of  goods  need  to  be  excluded  from  the  definition  of  intra-
Union supplies, in particular supplies of goods with assembly or installation; supplies 
of goods for the fuelling and provisioning of certain vessels and aircrafts; supplies of 
goods  in  the  framework  of  diplomatic  and  consular  arrangements  and  for  certain 

8 

9 

10 
11 

Council conclusions on the future of VAT - 3167th Economic and Financial affairs Council meeting, 
Brussels, 15 May 2012 (see in particular point B 4) 
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/130257.pdf 
Action  Plan  on  VAT  –  Towards  a  single  EU  VAT  area  -  Time  to  decide  (COM(2016)  148final  of 
7.4.2016. 
See: http://www.consilium.europa.eu/en/press/press-releases/2016/05/25-conclusions-vat-action-plan/ 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council  and  the  European 
Economic and Social Committee on the follow-up to the Action Plan on VAT – Towards a single EU 
VAT area – Time to act (COM(2017) 566 final of 4.10.2017). 

EN 

13 

  EN 

 
                                                 
(10) 

international  organisations,  and  supplies  of  goods  made  by  a  taxable  person  covered 
by the common flat-rate scheme for farmers. 

In  order to ensure  taxation  at destination  for B2B intra-Union supplies of goods, the 
place of supply of an intra-Union supply of goods should be situated in the Member 
State of arrival of the goods at the time when dispatch or transport of the goods to the 
customer ends. That rule should not apply to supplies of second-hand goods, works of 
art, collectors' items or antiques subject to the margin scheme, nor should it apply to 
supplies of goods on board ships, aircraft and trains and to supplies of goods through a 
natural  gas  system,  of  electricity,  and  of  heat  or  cooling  energy  through  heating  and 
cooling  networks  which  should  remain  covered  by  specific  rules  on  the  place  of 
supply. 

(11)  As a result of the abolition of the intra-Community acquisition as a taxable event for 
the purposes of VAT, the current special rules in relation to the supply of new means 
of transport and of excise products need to be reviewed. 

(12) 

In order to harmonise the application of this definitive system across the Union, it is 
necessary  to  determine  a  single  rule  for  the  chargeability  of  VAT  on  intra-Union 
supplies of goods. 

(13)  The  overall  rule  for  supplies  of  goods,  including  intra-Union  supplies  of  goods,  and 
for  supplies  of  services  should  be  that  the  supplier  is  liable  for  the  payment  of  the 
VAT. 

(14) 

In order to allow for a gradual transition to the definitive system for intra-Union trade, 
an exception to the rule that the supplier is liable for the payment of VAT should be 
made  in  case  of  a  supply  of  goods,  insofar  as  the  person  to  whom  the  goods  are 
supplied is a certified taxable person and the supplier is not established in the Member 
State of taxation. In that case, the acquirer should be the person liable for the payment 
of  VAT  and  he  should  account  for  the  VAT  by  means  of  the  reverse  charge 
mechanism.  This  exception  should  reduce  the  volume  of  transactions  for  which  the 
person  liable  for  the  payment  of  VAT  is  not  established  in  the  Member  State  of 
taxation. 

(15)  The rules on the temporary application of the reverse charge mechanism for movable 
goods should be reviewed in order to ensure their coherence with the introduction of 
the  new  rules  regarding  the  person  liable  for  the  payment  of  VAT  on  intra-Union 
supplies of goods. 

(16)  With  a  view  to  a  straightforward  application  of  the  rules  on  taxation  of  intra-Union 
supplies of goods by businesses, Member States should take the necessary measures to 
ensure that every taxable person and non-taxable legal person who is the recipient of 
intra-Union supplies of goods is identified by way of an individual number. 

(17)  To  ensure  the  proper  monitoring  of  the  payment  and  deduction  of  VAT  related  to 
intra-Union supplies of goods, the issuing of an invoice should be mandatory for intra-
Union supplies of goods and Member States should not allow the issuing of simplified 
invoices.  The  invoice  should  be  issued  in  accordance  with  the  rules  of  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. 

(18)  With  a  view  to  reducing  the  administrative  burden  on  trade  within  the  Union,  and 
since  VAT  on  intra-Union  supplies  of  goods  would  either  effectively  be  charged  by 

EN 

14 

  EN 

 
(19) 

(20) 

(21) 

(22) 

(23) 

(24) 

(25) 

the  supplier  or  accounted  for  by  an  acquirer  that  is  a  certified  taxable  person,  the 
obligation to submit a recapitulative statement for these supplies should be abolished. 

It is necessary to adapt the special flat-rate scheme for farmers in view of the change 
of  the  system  for  the  taxation  of  intra-Union  supplies  of  goods  in  such  way  that  the 
overall objective of that scheme remains achieved. By excluding the supplies made by 
farmers  under  the  flat-rate  scheme  from  the  definition  of  intra-Union  supplies,  the 
place of supply of their cross-border B2B supplies of goods should remain to be the 
place  of  departure  of  the  goods  and  the  flat-rate compensation  fixed  by  the  Member 
State of departure should be applied on these supplies. 

In  order  to  reduce  the  administrative  burden  for  businesses,  the  scope  of  the  current 
special  scheme  for  taxable  persons  established  in  the  Union  making  supplies  of 
services or certain supplies of goods to consumers (B2C supplies) should be extended 
by  covering  all  supplies  of  goods  and  services  for  which  the  person  liable  for  the 
payment of the VAT is not established in the Member State in which the supply takes 
place. The scheme should apply to supplies to both consumers and to businesses. 

It  is  also  appropriate  to  reduce  the  administrative  burden  for  taxable  persons  not 
established  in  the  Union  making  supplies  of  goods  and  services  for  which  they  are 
liable to pay VAT in one or more Member States by allowing them to make use of that 
special  scheme  when  they  appoint  an  intermediary.  In  order  to  ensure  the  proper 
collection of the tax, this intermediary should be established in the Union and become 
liable  for  the  payment  of  VAT  and  for  fulfilling  the  obligations  laid  down  in  the 
scheme on behalf of the taxable person not established in the Union. 

In  order  for  taxable  persons  to  fully  benefit  from  the  internal  market,  that  special 
scheme should not only allow for the declaration of transactions on which VAT is due 
in Member States other than those in which the supplier is established but also for the 
deduction to be made of the VAT charged to that supplier in those Member States. 

In view of ensuring coherence in the VAT reporting obligations for large enterprises, 
the  frequency  of  submitting  VAT  returns  under  this  special  scheme  should  be 
reviewed  by  adding  that  taxable  persons  making  use  of  the  scheme  shall  submit 
monthly  VAT  returns  under  the  scheme  when  their  annual  Union  turnover  is  above 
EUR 2 500 000. 

In order to collect the appropriate information from the taxable person for ensuring a 
proper monitoring of this special scheme by the tax authorities, the content of the VAT 
return  to  be  submitted  under  this  special  scheme  should  be  reviewed  to  take  the 
extension  of  the  scheme  into  account  and  to  allow  the  corresponding  right  of 
deduction to be exercised. 

In order to ensure the smooth functioning of this special scheme and to avoid obstacles 
for  taxable  person  making  use  of  the  opportunities  of  the  internal  market,  common 
rules  should  be  introduced  for  situations  whereby  the  taxable  person  is  in  a  credit 
position in the Member State of identification and/or the Member State(s) of taxation. 

(26)  For reason of clarity and to reduce the possibilities for any abuse or fraud, the period 
during which a taxable person can still deduct input VAT in a given Member State on 
his  return  submitted  under  this  special  scheme  where  he  no  longer  declares 
transactions for which he is liable to pay VAT in that same Member State should be 
laid  down.  Such  a  taxable  person  should,  on  the  expiry  of  this  period,  use  the 
appropriate refund procedures for claiming VAT back. 

EN 

15 

  EN 

 
(27)  The  derogations,  set  out  in  Title  XIII,  Chapter  1,  which  have  potential  cross-border 
effects should be deleted in order to avoid unnecessary complexity for taxable persons 
and tax administrations. 

(28)  As a result of the introduction of intra-Union supply of goods as a new concept, it is 
appropriate  to  replace  the  term  'Community'  with  'Union'  to  ensure  an  updated  and 
coherent use of the term. 

(29)  Since the objectives of this Directive, comprising the implementation of the definitive 
VAT  system  to  improve  the  operation  of  VAT  arrangements  for  cross-border  B2B 
trade  on  goods,  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 the 
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. 

(30) 

In  accordance  with  the Joint  Political  Declaration  of  28  September  2011  of  Member 
States  and  the  Commission  on  explanatory  documents12,  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. 

(31)  Directive 2006/112/EC should therefore be amended accordingly, 

HAS ADOPTED THIS DIRECTIVE: 

Directive 2006/112/EC is amended as follows: 

(1) 

Article 2 is amended as follows: 

Article 1 

(2) 

(3) 

(a) 

in paragraph 1, point (b) is deleted, 

(b)  paragraphs 2 and 3 are deleted; 

Articles 3 and 4 are deleted; 

in Article 5, points (1) and (2) are replaced by the following: 

'(1) 

(2) 

'Union' and ‘territory of the Union’ mean the territories of the Member States 
as defined in point (2); 

‘Member  State’  and  ‘territory  of  a  Member  State’  mean  the  territory  of  each 
Member  State  of  the  Union  to  which  the  Treaty  on  the  Functioning  of  the 
European Union is applicable, in accordance with Articles 349 and 355 of that 
Treaty,  with  the  exception  of  any  territory  referred  to  in  Article 6  of  this 
Directive;'; 

(4) 

Article 6 is amended as follows: 

(a) 

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

12 

OJ C 369, 17.12.2011, p. 14. 

EN 

16 

  EN 

 
                                                 
This Directive shall not apply to the following territories forming part 

'1. 
of the customs territory of the Union:', 

(b) 

in paragraph 2, the introductory words are replaced by the following: 

This  Directive  shall  not  apply  to  the  following  territories  not  forming 

'2. 
part of the customs territory of the Union:'; 

(5) 

Article 9 is amended as follows: 

(a)  paragraph 2 is replaced by the following: 

'2. 
In  addition to the persons referred  to in  paragraph 1, any person who, 
on an occasional basis, supplies a new means of transport, which is dispatched 
or transported to the customer by the vendor or the customer, or on behalf of 
the vendor or the customer, to a destination outside the territory of a Member 
State  but  within  the  territory  of  the  Union,  shall  be  regarded  as  a  taxable 
person.', 

(b) 

the following paragraph 3 is added: 

'3. 
For  the  purposes  of  paragraph  2,  the  following  shall  be  regarded  as 
‘means  of  transport’,  where  they  are  intended  for  the  transport  of  persons  or 
goods: 

(a)  motorised  land  vehicles  the  capacity  of  which  exceeds  48 cubic 

centimetres or the power of which exceeds 7.2 kilowatts; 

(b)  vessels  exceeding  7.5 metres  in  length,  with  the  exception  of 
vessels  used  for  navigation  on  the  high  seas  and  carrying 
passengers  for  reward,  and  of  vessels  used  for  the  purposes  of 
commercial,  industrial  or  fishing  activities,  or  for  rescue  or 
assistance at sea, or for inshore fishing; 

(c) 

aircraft the take off weight of which exceeds 1 550 kilograms, with 
the  exception  of  aircraft  used  by  airlines  operating  for  reward 
chiefly on international routes. 

These means of transport shall be regarded as ‘new’ in the cases: 

(a) 

of motorised land vehicles, where the supply takes place within six 
months  of  the  date  of  first entry  into  service  or  where  the vehicle 
has travelled for no more than 6 000 kilometres; 

(b)  of vessels, where the supply takes place within three months of the 
date of first entry into service or where the vessel has sailed for no 
more than 100 hours; 

(c) 

of aircraft, where the supply takes place within three months of the 
date of first entry into service or where the aircraft has flown for no 
more than 40 hours. 

Member  States  shall  lay  down  the  conditions  under  which  the  facts 
referred to in the second subparagraph may be regarded as established.'; 

(6) 

in Article 12, the introductory words of paragraph 1 are replaced by the following: 

'1.  Member States may regard as a taxable person anyone who carries out, on an 
occasional basis, any of the following transactions:'; 

(7) 

the following Article 13a is inserted:  

EN 

17 

  EN 

 
 
 
 
'Article 13a 

Any taxable person who has a place of business or a fixed establishment in the 
1. 
Union or in absence of place of business and fixed establishment has his permanent 
address  or  usual  residence  in  the  Union  and  who,  in  the  course  of  his  economic 
activity, carries out or intends to carry out, as a supplier or as a customer, any of the 
transactions  referred  to  in  point  3  of  Article  14(4)  and  Articles  17a,  38  or  39  may 
apply to the tax authorities for the status of certified taxable person.  

The tax authorities shall grant that status to an applicant where the criteria set out in 
paragraph  2  are  met,  unless  the  applicant  is  excluded  from  such  certification  by 
virtue of the terms of paragraph 3. 

Where  the  applicant  is  a  taxable  person  who  has  been  granted  the  status  of  an 
authorised economic operator for customs purposes, the criteria in paragraph 2 shall 
be deemed to have been met. 

All the following criteria shall be required to be met in order to grant the status 

2. 
of a certified taxable person: 

(a) 

(b) 

(c) 

the absence of any serious infringement or repeated infringements of taxation 
rules  and  customs  legislation,  as  well  as  of  any  record  of  serious  criminal 
offences relating to the economic activity of the applicant; 

the demonstration by the applicant of a high level of control of his operations 
and of the flow of goods, either by means of a  system  managing commercial 
and,  where  appropriate,  transport  records,  which  allows  appropriate  tax 
controls, or by means of a reliable or certified internal audit trail; 

evidence  of  financial  solvency  of  the  applicant,  which  shall  be  deemed  to  be 
proven  either  where  the  applicant  has  good  financial  standing,  which  enables 
him to fulfil his commitments, with due regard to the characteristics of the type 
of  business  activity  concerned,  or  through  the  production  of  guarantees 
provided by insurance or other financial institutions or by other economically 
reliable third parties. 

The  following  taxable  persons  may  not  be  granted  the  status  of  a  certified 

3. 
taxable person: 

(a) 

(b) 

(c) 

(d) 

taxable persons covered by the common flat-rate scheme for farmers; 

taxable persons covered by the exemption for small enterprises provided for in 
Section 2 of Chapter 1 of Title XII.; 

taxable persons carrying out supplies of goods or services in respect of which 
VAT is not deductible; 

taxable persons carrying out an occasional supply of a new means of transport 
within the meaning of Article 9(2) or carrying out an occasional activity within 
the meaning of Article 12. 

However, the taxable persons referred to in points (a) to (d) may be granted the status 
of  a  certified  taxable  person  in  respect  of  other  economic  activities  that  they  carry 
out. 

4. 
A taxable person who applies for the status of a certified taxable person shall 
supply all the information required by the tax authorities in order to enable them to 
take a decision. 

EN 

18 

  EN 

 
For the purposes of granting this tax status, tax authorities shall mean: 

(a) 

(b) 

(c) 

those of the Member State where the applicant has established his business; 

those  of  the  Member  State  with  the  fixed  establishment  of  the  applicant  in 
which  his  main  accounts  within  the  Union  for  tax  purposes  are  held  or 
accessible, where the applicant has established his business outside the Union 
but has one or more fixed establishments within the Union; 

those  of  the  Member  State  where  the  applicant  has  his  permanent  address  or 
where he usually resides, where he has neither a place of business nor a fixed 
establishment. 

5.  Where  the  application  is  refused,  the  grounds  for  refusal  shall  be  notified  by 
the  tax  authorities  to  the  applicant  together  with  the  decision.  Member  States  shall 
ensure that the applicant is granted a right of appeal against any decision to refuse an 
application. 

The taxable person who has been granted the status of certified taxable person 
6. 
shall inform the tax authorities without delay of any factor arising after the decision 
was  taken,  which  may  affect  or  influence  the  continuation  of  that  status.  The  tax 
status shall be withdrawn by the tax authorities where the criteria set out in paragraph 
2 are no longer met. 

The  status  of  a  certified  taxable  person  in  one  Member  State  shall  be 

7. 
recognised by the tax authorities of all the Member States.'; 

(8) 

Article 14 is amended as follows: 

(a)  paragraph 4 is replaced by the following: 

'4. 

(1) 

For the purposes of this Directive, the following definitions shall apply: 

‘intra-Union distance sales of goods’ means supplies of goods dispatched 
or  transported  by  or  on  behalf  of  the  supplier,  including  where  the 
supplier  intervenes  indirectly  in  the  transport  or  dispatch  of  the  goods, 
from a Member State other than that in which dispatch or transport of the 
goods to the customer ends, where the following conditions are met: 

(a) 

(b) 

the  supply  of  goods  is  carried  out  for  a  non-taxable  person  other 
than a non-taxable legal person;  

the  goods  supplied  are  neither  new  means  of  transport  nor  goods 
supplied after assembly or installation, with or without a trial run, 
by or on behalf of the supplier; 

(2) 

‘distance sales of goods imported from third territories or third countries’ 
means supplies of goods dispatched or transported by or on behalf of the 
supplier,  including  where  the  supplier  intervenes  indirectly  in  the 
transport or dispatch of the goods, from a third territory or third country, 
to a customer in a Member State, where the following conditions are met: 

(a) 

(b) 

the  supply  of  goods  is  carried  out  for  a  non-taxable  person  other 
than a non-taxable legal person; 

the  goods  supplied  are  neither  new  means  of  transport  nor  goods 
supplied after assembly or installation, with or without a trial run, 
by or on behalf of the supplier; 

EN 

19 

  EN 

 
(3) 

'intra-Union  supply  of  goods'  means  a  supply  of  goods  where  the 
following conditions are met: 

(a) 

(b) 

the supply of goods is carried out by a taxable person for a taxable 
person or for a non- taxable legal person; 

the  goods  are  dispatched  or  transported,  by  or  on  behalf  of  the 
supplier or the person acquiring the goods within the Union, from 
one Member State to another.', 

(b) 

the following paragraph 5 is added: 

The  following  shall  not  to  be  regarded  as  an  intra-Union  supply  of 

'5. 
goods: 

(a) 

(b) 

(c) 

the supply of goods with assembly or installation, with or without a trial 
run, pursuant to Article 36; 

the supply of goods that are exempt pursuant to Articles 148 or 151; 

the supply of goods by a taxable person covered by the common flat-rate 
scheme for farmers.'; 

(9) 

in Article 14a, paragraph 2 is replaced by the following: 

'2.  Where  a  taxable  person  facilitates,  through  the  use  of  an  electronic  interface 
such as a marketplace, platform, portal or similar means, the supply of goods within 
the  Union  by  a  taxable  person  not  established  within  the  Union  to  a  non-taxable 
person,  the  taxable  person  who  facilitates  the  supply  shall  be  deemed  to  have 
received and supplied those goods himself.'; 

(10) 

Article 17 is amended as follows: 

(a)  paragraph 1 is replaced by the following: 

'1. 
The transfer by a taxable person of goods forming part of his business 
assets  to  another  Member  State  shall  be  treated  as  an  intra-Union  supply  of 
goods for consideration. 

‘Transfer  to  another  Member  State’  shall  mean  the  dispatch  or  transport  of 
movable  tangible  property  by  or  on  behalf  of  the  taxable  person,  for  the 
purposes  of  his  business,  to  a  destination  outside  the  territory  of  the  Member 
State in which the property is located, but within the Union.', 

(b) 

in paragraph 2, point (a) is replaced by the following: 

'(a) 

the supply of the goods by the taxable person within the territory of the 
Member State in which the dispatch or transport ends, in accordance with 
the conditions laid down in Articles 33, 35a or 35b;', 

(c) 

in paragraph 2, points (d) and (e) are replaced by the following: 

'(d) 

the  supply  of  gas  through  a  natural  gas  system  situated  within  the 
territory  of  the  Union  or  any  network  connected  to  such  a  system,  the 
supply  of  electricity  or  the  supply  of  heat  or  cooling  energy  through 
heating or cooling networks, in accordance with the conditions laid down 
in Articles 38 and 39; 

(e) 

the supply of the goods by the taxable person within the territory of the 
Member  State,  in  accordance  with  the  conditions  laid  down  in  Articles 
146 147, 148, 151 or 152;'; 

EN 

20 

  EN 

 
(11) 

the following Article 17a is inserted: 

'Article 17a 

1. 
The transfer by a taxable person of goods forming part of his business assets to 
another Member State under a call-off stock situation shall not be treated as an intra-
Union supply of goods for consideration. 

For  the  purposes  of  this  Article  a  call-off  stock  situation  shall  be  deemed  to 

2. 
exist where the following conditions are met: 

(a) 

(b) 

(c) 

(d) 

a certified taxable person dispatches or transports the goods to another Member 
State in order to supply them at a later stage and after their arrival to another 
certified  taxable  person  whose  identity  and  VAT  identification  number  are 
already known at the time the transport begins; 

the  certified  taxable  person  dispatching  or  transporting  the  goods  is  not 
established  in  the  Member  State  to  which  the  goods  are  dispatched  or 
transported; 

the certified taxable person acquiring the goods at a later stage and after their 
arrival is identified for VAT purposes in the Member State to which the goods 
are transferred; 

the  certified  taxable  person  dispatching  or  transporting  the  goods  has 
mentioned  that  dispatch  or  transport  in  the  register  provided  for  in  Article 
243(3). 

3.  Where the conditions in paragraph 2 are met, at the time of the transfer of the 
right to dispose of the goods to the certified taxable person referred to in point c) of 
that  paragraph  an  intra-Union  supply  of  goods  shall  be  deemed  to  be  made  in  the 
Member State to which the goods were dispatched or transported.'; 

(12) 

the following Article 18a is inserted: 

'Article 18a 

The application by the armed forces of a State which is a party to the North Atlantic 
Treaty, for their use or for the use of the civilian staff accompanying them, of goods 
which they have not purchased subject to the general rules governing taxation on the 
domestic  market  of  a  Member  State  shall  be  treated  as  a  supply  of  goods  for 
consideration,  where  the  importation  of  those  goods  would  not  be  eligible  for  the 
exemption provided for in point (h) of Article 143(1).'; 

(13) 

Article 19 is replaced by the following: 

'Article 19 

'In the event of a transfer, whether for consideration or not or as a contribution to a 
company, of a totality of assets or part thereof, Member States shall consider that no 
supply  of  goods  has  taken  place  and  that  the  person  to  whom  the  goods  are 
transferred is to be treated as the successor to the transferor. 

Member States shall, in cases where the recipient is not wholly liable to tax, take the 
measures  necessary  to  prevent  distortion  of  competition.  They  shall  also  adopt  any 
measures needed to prevent tax evasion or avoidance through the use of this Article.'; 

EN 

21 

  EN 

 
(14) 

(15) 

in Title IV, Chapter 2 is deleted; 

Article 30 is replaced by the following: 

'Article 30 

‘Importation of goods’ shall mean the entry into the Union of goods which are not in 
free circulation within the meaning of Article 29 of the Treaty on the Functioning of 
the European Union. 

In  addition  to  the  transaction  referred  to  in  the  first  paragraph,  the  entry  into  the 
Union of goods which are in free circulation, coming from a third territory forming 
part of the customs territory of the Union, shall be regarded as importation of goods.'; 

(16) 

in  Title  V,  Chapter  1,  Section  2,  the  following  heading  of  Subsection  1  is  inserted 
before Article 32: 

'Subsection 1 
General rule' 

(17) 

in  Title  V,  Chapter  1,  Section  2,  the  following  heading  of  Subsection  2  is  inserted 
before Article 33: 

'Subsection 2 
Particular provisions' 

(18) 

Article 33 is replaced by the following: 

'Article 33 

1. 
The place of supply of intra-Union distance sales of goods 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. 

The place of supply of distance sales of goods imported from third territories 
2. 
or third countries into a Member State other than that in which dispatch or transport 
of the goods to the customer 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. 

3. 
The place of supply of distance sales of goods imported from third territories 
or third countries into the Member State in which dispatch or transport of the goods 
ends shall be deemed to be in that Member State, provided that VAT on those goods 
is to be declared under the special scheme of Section 4 of Chapter 6 of Title XII.'; 

(19) 

(20) 

Article 35 is deleted; 

the following Articles 35a, 35b, 35c and 35d are inserted: 

'Article 35a 

The  place  of  supply  of  an  intra-Union  supply  of  goods  shall  be  deemed  to  be  the 
place where the goods are located at the time when the dispatch or transport of those 
goods to the customer ends. 

EN 

22 

  EN 

 
Article 35b 

The place of supply of a new means of transport carried out for a non-taxable person 
other than a non- taxable legal person, where the goods are dispatched or transported 
from  one  Member  State  to  another,  shall  be  deemed  to  be  the  place  where  those 
goods are located at the time when dispatch or transport of the goods ends. 

Article 35c 

By way of derogation, Articles 33 and 35a shall not apply to the supply of second-
hand goods, works of art, collectors’ items or antiques, as defined in points (1) to (4) 
of Article 311(1) subject to VAT in accordance with that special arrangement. 

Article 35d 

For the purposes of Articles 35a and 35b if dispatch or transport of the goods begins 
in  a  third  territory  or  third  country  and  the  supply  by  the  importer  designated  or 
recognised  in  accordance  with  Article 201  as  liable  for  payment  of  VAT  or  a 
subsequent  supply  involves  the  transport  or  dispatch  of  the  goods  that  ends  in  a 
Member  State  other  than  the  Member  State  of  importation,  the  goods  shall  be 
considered as transported or dispatched from the Member State of importation.'; 

(21) 

in Section 2 of Chapter 1 of Title V, the following Article 36a is inserted: 

'Article 36a 

1.  Where  goods  are  supplied  in  the  context  of  a  chain  transaction  situation,  the 
transport  or  dispatch  from  one  Member  State  to  another  referred  to  in  point  (b)  of 
Article  14(4)(3)  shall  be  ascribed  to  the  supply  made  by  the  provider  to  the 
intermediary operator, where the following conditions are met: 

(a) 

(b) 

the  intermediary  operator  communicates  the  name  of  the  Member  State  of 
arrival of the goods to the provider; 

the  intermediary  operator  is  identified  for  VAT  purposes  in  a  Member  State 
other than that in which the dispatch or transport of the goods begins. 

2.  Where  any  of  the  conditions  laid  down  in  paragraph  1  is  not  met,  in  a  chain 
transaction  situation  the  transport  or  dispatch  from  one  Member  State  to  another 
referred to in point (b) of Article 14(4)(3) shall be ascribed to the supply made by the 
intermediary operator to the customer. 

3. 

(a) 

(b) 

For the purposes of this Article, the following definitions shall apply: 

'chain transaction situation' shall mean a situation where successive supplies of 
the same goods by taxable persons give rise to a single transport or dispatch of 
those  goods  from  one  Member  State  to  another  and  where  both  the 
intermediary operator and the provider are certified taxable persons;  

'intermediary  operator'  shall  mean  a  supplier  in  the  chain  other  than  the  first 
supplier, who dispatches or transports the goods, himself or by a third party on 
his behalf;  

(c) 

'provider' shall mean the taxable person in the chain who supplies the goods to 
the intermediary operator;  

EN 

23 

  EN 

 
(d) 

'customer'  shall  mean  the  taxable  person  to  whom  the  intermediary  operator 
supplies the goods in the chain.'; 

(22) 

Article 37 is replaced by the following: 

'Article 37 

1.  Where goods are supplied on board ships, aircraft or trains during the section 
of  a  passenger  transport  operation  effected  within  the  Union,  the  place  of  supply 
shall be deemed to be at the point of departure of the passenger transport operation. 

2. 
For  the  purposes  of  paragraph 1,  ‘section  of  a  passenger  transport  operation 
effected within the Union’ shall mean the section of the operation effected, without a 
stopover outside the Union, between the point of departure and the point of arrival of 
the passenger transport operation. 

‘Point of departure of a passenger transport operation’ shall mean the first scheduled 
point of passenger embarkation within the Union, where applicable after a stopover 
outside the Union. 

‘Point  of  arrival  of  a  passenger  transport  operation’  shall  mean  the  last  scheduled 
point of disembarkation within the Union of passengers who embarked in the Union, 
where applicable before a stopover outside the Union. 

In  the  case  of  a  return  trip,  the  return  leg  shall  be  regarded  as  a  separate  transport 
operation. 

3.  Member  States  may  exempt  or  continue  to  exempt,  with  deductibility  of  the 
VAT paid at the preceding stage, the supply of goods for consumption on board in 
respect of which the place of taxation is determined in accordance with paragraph 1.'; 

(23) 

in Article 38, paragraph 1 is replaced by the following: 

'1. 
In the case of the supply of gas through a natural gas system situated within the 
territory  of  the  Union  or  any  network  connected  to  such  a  system,  the  supply  of 
electricity,  or  the  supply  of  heat  or  cooling  energy  through  heating  or  cooling 
networks  to  a  taxable  dealer,  the  place  of  supply  shall  be  deemed  to  be  the  place 
where that taxable dealer has established his business or has a fixed establishment for 
which the goods are supplied or, in the absence of such a place of business or fixed 
establishment, the place where he has his permanent address or usually resides.'; 

(24) 

in Article 39, the first paragraph is replaced by the following: 

'In  the  case  of  the  supply  of  gas  through  a  natural  gas  system  situated  within  the 
territory  of  the  Union  or  any  network  connected  to  such  a  system,  the  supply  of 
electricity  or  the  supply  of  heat  or  cooling  energy  through  heating  or  cooling 
networks, where such a supply is not covered by Article 38, the place of supply shall 
be  deemed  to  be  the  place  where  the  customer  effectively  uses  and  consumes  the 
goods.'; 

(25) 

(26) 

in Title V, Chapter 2 is deleted; 

Articles 49 and 50 are replaced by the following: 

EN 

24 

  EN 

 
'Article 49 

The place of supply of the transport of goods, other than the intra-Union transport of 
goods,  to  non-taxable  persons  shall  be  the  place  where  the  transport  takes  place, 
proportionate to the distances covered. 

Article 50 

The  place  of  supply  of  the  intra-Union  transport  of  goods  to  non-taxable  persons 
shall be the place of departure.'; 

(27) 

in Article 51, the first paragraph is replaced by the following: 

‘Intra-Union  transport  of  goods’  shall  mean  any  transport  of  goods  in  respect  of 
which the place of departure and the place of arrival are situated within the territories 
of two different Member States.'; 

(28) 

Article 52 is replaced by the following: 

'Article 52 

Member States need not apply VAT to that part of the intra-Union transport of goods 
to  non-taxable  persons  taking  place  over  waters  which  do  not  form  part  of  the 
territory of the Union.'; 

(29) 

Article 55 is replaced by the following: 

'Article 55 

The  place  of  supply  of  restaurant  and  catering  services  other  than  those  physically 
carried  out  on  board  ships,  aircraft  or  trains  during  the  section  of  a  passenger 
transport operation effected within the Union, shall be the place where the services 
are physically carried out.'; 

(30) 

Article 57 is replaced by the following: 

'Article 57 

The  place  of  supply  of  restaurant  and  catering  services  which  are  physically 
1. 
carried  out  on  board  ships,  aircraft  or  trains  during  the  section  of  a  passenger 
transport operation effected within the Union, shall be at the point of departure of the 
passenger transport operation. 

2. 
For  the  purposes  of  paragraph  1,  ‘section  of  a  passenger  transport  operation 
effected within the Union’ shall mean the section of the operation effected, without a 
stopover outside the Union, between the point of departure and the point of arrival of 
the passenger transport operation. 

‘Point of departure of a passenger transport operation’ shall mean the first scheduled 
point of passenger embarkation within the Union, where applicable after a stopover 
outside the Union. 

‘Point  of  arrival  of  a  passenger  transport  operation’  shall  mean  the  last  scheduled 
point of disembarkation within the Union of passengers who embarked in the Union, 
where applicable before a stopover outside the Union. 

EN 

25 

  EN 

 
In  the  case  of  a  return  trip,  the  return  leg  shall  be  regarded  as  a  separate  transport 
operation.'; 

(31) 

in  Title  V,  Chapter  3,  Section  3,  the  heading  of  Subsection  9  is  replaced  by  the 
following: 

'Subsection 9 
Supply of services to non-taxable persons outside the Union' 

(32) 

in Article 59, the first paragraph is amended as follows: 

(a) 

the introductory words are replaced by the following: 

'The place of supply of the following services to a non-taxable person who is 
established or has his permanent address or usually resides outside the Union, 
shall be the place where that person is established, has his permanent address 
or usually resides:', 

(b)  point (h) is replaced by the following: 

'(h)   the  provision  of  access  to  a  natural  gas  system  situated  within  the 
territory of the Union or to any network connected to such a system, to 
the  electricity  system  or  to  heating  or  cooling  networks,  or  the 
transmission  or  distribution  through  these  systems  or  networks,  and  the 
provision of other services directly linked thereto.'; 

(33) 

in Article 59a, points (a) and (b) are replaced by the following: 

'(a)  consider the place of supply  of any or  all of those  services, if situated within 
their  territory,  as  being  situated  outside  the  Union  if  the  effective  use  and 
enjoyment of the services takes place outside the Union; 

(b) 

consider the place of supply of any or all of those services, if situated outside 
the  Union,  as  being  situated  within  their  territory  if  the  effective  use  and 
enjoyment of the services takes place within their territory.'; 

(34) 

in Title V, the heading of Chapter 3a is replaced by the following: 

'THRESHOLD FOR TAXABLE PERSONS MAKING SUPPLIES OF 
GOODS COVERED BY ARTICLE 33(1) AND SUPPLIES OF SERVICES 
COVERED BY ARTICLE 58' 

(35) 

Article 59c is amended as follows: 

(a) 

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

Article  33(1)  and  Article  58  shall  not  apply,  where  the  following 

'1. 
conditions are met:', 

(b)  paragraph 3 is replaced by the following:  

'3. 
The Member State within the territory of which the goods are located at 
the time when 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, which 
shall in any event cover two calendar years.'; 

EN 

26 

  EN 

 
(36) 

Articles 60 and 61 are replaced by the following: 

'Article 60 

The place of importation of goods shall be the Member State within whose territory 
the goods are located when they enter the Union. 

Article 61 

By way of derogation from Article 60, where, on entry into the Union, goods which 
are  not  in  free  circulation  are  placed  under  one  of  the  arrangements  or  situations 
referred  to  in  Article  156,  or  under  temporary  importation  arrangements  with  total 
exemption  from  import  duty,  or  under  external  transit  arrangements,  the  place  of 
importation  of  such  goods  shall  be  the  Member  State  within  whose  territory  the 
goods cease to be covered by those arrangements or situations. 

Similarly,  where,  on  entry  into  the  Union,  goods  which  are  in  free  circulation  are 
placed  under  one  of  the  arrangements  or  situations  referred  to  in  Articles  276  and 
277,  the  place  of  importation  shall  be  the  Member  State  within  whose  territory  the 
goods cease to be covered by those arrangements or situations.'; 

(37) 

in Article 64, paragraph 2 is replaced by the following: 

'2.  Continuous  intra-Union  supplies  of  goods  over  a  period  of  more  than  one 
calendar  month  shall  be  regarded  as  being  completed  on  expiry  of  each  calendar 
month until such time as the supply comes to an end.'; 

(38) 

in Article 66, the second paragraph is replaced by the following: 

'The  derogation  provided  for  in  the  first  paragraph  shall  not,  however,  apply  to 
supplies of services in respect of which VAT is payable by the customer pursuant to 
Article  196,  to  intra-Union  supplies  of  goods  and  to  supplies  of  new  means  of 
transport in accordance with Article 35b.'; 

(39) 

Article 67 is replaced by the following: 

'Article 67 

For  intra-Union  supplies  of  goods  and  for  supplies  of  new  means  of  transport  in 
accordance with Article 35b VAT shall become chargeable on issue of the invoice, 
or on expiry of the time limit referred to in the first paragraph of Article 222 if no 
invoice has been issued by that time. 

However, Article 64(1), the third subparagraph of Article 64(2) and Article 65 shall 
not apply with respect to intra-Union supplies of goods and to supplies of new means 
of transport in accordance with Article 35b.'; 

in Title VI, Chapter 3 is deleted; 

in Article 71(1), the first subparagraph is replaced by the following: 

'1.  Where,  on  entry  into  the  Union,  goods  are  placed  under  one  of  the 
arrangements  or  situations  referred  to  in  Articles  156,  276  and  277,  or  under 
temporary importation arrangements with total exemption from import duty, or under 
external  transit  arrangements,  the  chargeable  event  shall  occur  and  VAT  shall 
become chargeable only when the goods cease to be covered by those arrangements 
or situations.'; 

(40) 

(41) 

EN 

27 

  EN 

 
(42) 

Article 76 is replaced by the following: 

'Article 76 

In  respect  of  the  intra-Union  supply  of  goods  consisting  in  transfer  to  another 
Member  State,  the  taxable  amount  shall  be  the  purchase  price  of  the  goods  or  of 
similar goods or, in the absence of a purchase price, the cost price, determined at the 
time the transfer takes place.'; 

(43) 

Article 78 is replaced by the following: 

1. 

(a) 

(b) 

'Article 78 

The taxable amount shall include the following factors: 

taxes, duties, levies and charges, excluding the VAT itself; 

incidental  expenses,  such  as  commission,  packing,  transport  and  insurance 
costs, charged by the supplier to the customer. 

For the purposes of point (a) of the first subparagraph, duties shall include the excise 
duty  due  in  the  Member  State  in  which  the  intra-Union  supply  of  goods  subject  to 
excise duty takes place in accordance with Article 35a. 

For  the  purposes  of  point  (b)  of  the  first  subparagraph,  Member  States  may  regard 
expenses covered by a separate agreement as incidental expenses. 

2.  Where,  after  the  intra-Union  supply  of  goods  has  been  made,  the  supplier 
obtains  a  refund  of  the  excise  duty  paid  in  the  Member  State  in  which  dispatch  or 
transport of the goods began, the taxable amount shall be reduced accordingly in the 
Member State in which the intra-Union supply of goods subject to excise duty takes 
place in accordance with Article 35a. 

3. 
For the purposes of this Directive, ‘products subject to excise duty’ shall mean 
energy  products,  alcohol  and  alcoholic  beverages  and  manufactured  tobacco,  as 
referred to in Article 1(1) of Council Directive 2008/118/EC (*) but not gas supplied 
through a natural gas system situated within the territory of the Union or any network 
connected to such a system.'; 

_________________________________________________________________ 

(*)  Council Directive 2008/118/EC of 16 December 2008 concerning the general 
arrangements for excise duty and repealing Directive 92/12/EEC (OJ L 9, 14.1.2009, 
p. 12). 

(44) 

(45) 

in Title VII, Chapter 3 is deleted; 

Article 85 is replaced by the following: 

'Article 85 

In  respect  of  the  importation  of  goods,  the  taxable  amount  shall  be  the  value  for 
customs purposes, determined in accordance with the Union provisions in force.'; 

(46) 

in Article 86(1), point (b) is replaced by the following: 

'(b) 

incidental  expenses,  such  as  commission,  packing,  transport  and  insurance 
costs,  incurred  up  to  the  first  place  of  destination  within  the  territory  of  the 
Member  State  of  importation  as  well  as  those  resulting  from  transport  to 

EN 

28 

  EN 

 
another  place  of  destination  within  the  Union,  if  that  other  place  is  known 
when the chargeable event occurs.'; 

(47) 

Article 88 is replaced by the following: 

'Article 88 

Where  goods  temporarily  exported  from  the  Union  are  re-imported  after  having 
undergone,  outside  the  Union,  repair,  processing,  adaptation,  making  up  or  re-
working, Member States shall take steps to ensure that the tax treatment of the goods 
for VAT purposes is the same as that which would have been applied had the repair, 
processing,  adaptation,  making  up  or  re-working  been  carried  out  within  their 
territory.'; 

(48) 

Article 91 is amended as follows: 

(a)  paragraph 1 is replaced by the following: 

Where the factors used to determine the taxable amount on importation 
'1. 
are  expressed  in  a  currency  other  than  that  of  the  Member  State  in  which 
assessment  takes  place,  the  exchange  rate  shall  be  determined  in  accordance 
with  the  Union  provisions  governing  the  calculation  of  the  value  for  customs 
purposes.', 

(b) 

the third subparagraph of paragraph 2 is replaced by the following: 

'However, for some of the transactions referred to in the first subparagraph or 
for certain categories of taxable persons, Member States may use the exchange 
rate determined in accordance with the Union provisions in force governing the 
calculation of the value for customs purposes.'; 

(49) 

in Article 93, point (b) is replaced by the following: 

'(b) 

in the case of an intra-Union supply of goods;'; 

(50) 

(51) 

Article 94 is deleted; 

Article 131 is replaced by the following: 

'Article 131 

The exemptions provided for in Chapters 2 to 9 shall apply without prejudice to other 
Union provisions and in accordance with conditions which the Member States shall 
lay down for the purposes of ensuring the correct and straightforward application of 
those exemptions and of preventing any possible evasion, avoidance or abuse.'; 

(52) 

in Title IX, the heading of Chapter 4 is replaced by the following:  

'EXEMPTIONS FOR CERTAIN 
INTRA-UNION TRANSPORTS OF GOODS' 

(53) 

(54) 

(55) 

in Chapter 4 of Title IX, the Sections 1 and 2 are deleted; 

in Chapter 4 of Title IX, the heading of Section 3 is deleted; 

Article 142 is replaced by the following: 

EN 

29 

  EN 

 
'Article 142 

Member States shall exempt the supply of intra-Union transport of goods to and from 
the islands making up the autonomous regions of the Azores and Madeira, as well as 
the supply of transport of goods between those islands.'; 

(56) 

Article 143 is amended as follows: 

(a) 

in paragraph 1, points (b) and (c) are replaced by the following: 

'(b) 

(c) 

the  final 
2007/74/EC (*), 2009/132/EC (**) and 2006/79/EC (***); 

importation  of  goods  governed  by  Council  Directives 

the  final  importation  of  goods,  in  free  circulation  from  a  third  territory 
forming part of the Union customs territory, which would be entitled to 
exemption under point (b) if they had been imported within the meaning 
of the first paragraph of Article 30;', 

(b) 

in paragraph 1, point (d) is replaced by the following: 

'(d) 

the importation of goods dispatched or transported from a third territory 
or  a  third  country  into  a  Member  State  other  than  that  in  which  the 
dispatch or transport of the goods ends, where the supply of such goods 
by the importer designated or recognised under Article 201 as liable for 
payment of VAT is an intra-Union supply of goods;', 

(c) 

in paragraph 1, point (fa) is replaced by the following: 

'(fa)  the importation of goods by the Union institutions, the European Atomic 
Energy Community, the European Investment Bank, or by the bodies set 
up by the European Union to which Protocol (No 7) on the privileges and 
immunities  of  the  Union  applies,  within  the  limits  and  under  the 
conditions of that Protocol and the agreements for its implementation or 
the headquarters agreements, in so far as it does not lead to distortion of 
competition;’, 

(d) 

the introductory words of paragraph 2 are replaced by the following: 

'2. 
The  exemption  provided  for  in  paragraph 1(d)  shall  apply  in  cases 
when the importation of goods is followed by the intra-Union supply of goods 
only  if at the time of importation  the importer has  provided to  the competent 
authorities  of  the  Member  State  of  importation  at  least  the  following 
information:', 

(e) 

in paragraph 2, point (b) is replaced by the following: 

'(b) 

the  VAT  identification  number  of  the  customer  to  whom  the  goods  are 
supplied, issued in another Member State, or his own VAT identification 
number in case of a transfer according to Article 17(1);'; 

_________________________________________________________________ 

(*)  Council  Directive  2007/74/EC  of  20  December  2007  on  the  exemption  from 
value added tax and excise duty of goods imported by persons travelling from third 
countries(OJ L 346, 29.12.2007, p. 6). 

(**)  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 the exemption from value 
added  tax  on  the  final  importation  of  certain  goods  (codified  version)  (OJ  L  292, 
10.11.2009, p. 5). 

EN 

30 

  EN 

 
(***) Council Directive 2006/79/EC of 5 October 2006 on the exemption from taxes 
of imports of small consignments of goods of a non-commercial character from third 
countries (codified version) (OJ L 286, 17.10.2006, p. 15). 

(57) 

in Article 145(2), the second subparagraph is replaced by the following: 

'Member  States  may  adapt  their  national  provisions  so  as  to  minimise  distortion  of 
competition and, in particular, to prevent non-taxation or double taxation within the 
Union.'; 

(58) 

in Article 146(1), points (a) to (d) are replaced by the following: 

'(a) 

(b) 

(c) 

(d) 

the  supply  of  goods  dispatched  or  transported  to  a  destination  outside  the 
Union by or on behalf of the vendor; 

the  supply  of  goods  dispatched  or  transported  to  a  destination  outside  the 
Union  by  or  on  behalf  of  a  customer  not  established  within  their  respective 
territory, with the exception of goods transported by the customer himself for 
the equipping, fuelling and provisioning of pleasure boats and private aircraft 
or any other means of transport for private use; 

the supply of goods to approved bodies which export them out of the Union as 
part of their humanitarian, charitable or teaching activities outside the Union; 

the  supply  of  services  consisting  in  work  on  movable  property  acquired  or 
imported  for  the  purpose  of  undergoing  such  work  within  the  Union,  and 
dispatched or transported out of the Union by the supplier, by the customer if 
not established within their respective territory or on behalf of either of them;'; 

(59) 

Article 147 is amended as follows: 

(a) 

in paragraph 1, points (a) and (b) are replaced by the following: 

'(a) 

the traveller is not established within the Union; 

(b) 

the  goods  are  transported  out  of  the  Union  before  the  end  of  the  third 
month following that in which the supply takes place;', 

(b) 

in  paragraph  2,  the  first  and  second  subparagraphs  are  replaced  by  the 
following: 

For  the  purposes  of  paragraph  1,  ‘a  traveller  who  is  not  established 
'2. 
within the Union’ shall mean a traveller whose permanent address or habitual 
residence  is  not  located  within  the  Union.  In  that  case  ‘permanent  address  or 
habitual residence’ means the place entered as such in a passport, identity card 
or  other  document  recognised  as  an  identity  document  by  the  Member  State 
within whose territory the supply takes place. 

Proof  of  exportation  shall  be  furnished  by  means  of  the  invoice  or  other 
document  in  lieu  thereof,  endorsed  by  the  customs  office  of  exit  from  the 
Union.'; 

(60) 

in Article 151(1), point (aa) is replaced by the following: 

'(aa)  the supply of goods or services to the Union institutions, the European Atomic 
Energy Community, the European Investment Bank, or to the bodies set up by 
the Communities to which Protocol (No 7) on the privileges and immunities of 
the European Union applies, within the limits and under the conditions of that 
Protocol  and  the  agreements  for  its  implementation  or  the  headquarters 
agreements, in so far as it does not lead to distortion of competition;'; 

EN 

31 

  EN 

 
(61) 

in Article 153, the first paragraph is replaced by the following: 

'Member States shall exempt the supply of services by intermediaries, acting in the 
name  and  on  behalf  of  another  person,  where  they  take  part  in  the  transactions 
referred to in Chapters 6, 7 and 8, or of transactions carried out outside the Union.'; 

(62) 

Articles 154 and 155 are replaced by the following: 

'Article 154 

For the purposes of this Section, ‘warehouses other than customs warehouses’ shall, 
in  the  case  of  goods  subject  to  excise  duty,  mean  the  places  defined  as  tax 
warehouses by Article 4(11) of Directive 2008/118/EC and, in the case of goods not 
subject to excise duty, the places defined as such by the Member States. 

Article 155 

Without  prejudice  to  other  Union  tax  provisions,  Member  States  may,  after 
consulting  the  VAT  Committee,  take  special  measures  designed  to  exempt  all  or 
some of the transactions referred to in this Section, provided that those measures are 
not aimed at final use or consumption and that the amount of VAT due on cessation 
of  the  arrangements  or  situations  referred  to  in  this  Section  corresponds  to  the 
amount of tax which would have been due had each of those transactions been taxed 
within their territory.'; 

(63) 

in Article 156, paragraph 2 is replaced by the following: 

The  places  referred  to  in  paragraph  1  shall  be  those  defined  as  such  by  the 

'2. 
Union customs provisions in force.'; 

(64) 

in Article 158(1), point (b) is replaced by the following: 

'(b)  where the goods are intended for taxable persons, for the purposes of carrying 
out supplies to travellers on board an aircraft or a ship in the course of a flight 
or sea crossing where the place of arrival is situated outside the Union;'; 

(65) 

in Article 161, point (b) is replaced by the following: 

'(b) 

the supply of goods referred to in the second paragraph of Article 30 while they 
remain  covered  by  the  internal  Union  transit  procedure  referred  to  in  Article 
276.'; 

(66) 

(67) 

Article 162 is deleted; 

Article 164 is amended as follows: 

(a) 

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

'(a) 

imports  for  and  supplies  of  goods  to  the  taxable  person,  with  a  view  to 
their exportation from the Union as they are or after processing;', 

(b)  paragraph 2 is replaced by the following: 

The exemption shall not apply to intra-Union supplies of goods where 
'2. 
the  supplier,  who  is  liable  for  payment  of  VAT,  makes  use  of  the  special 
scheme provided for in Section 3 of Chapter 6 of Title XII for the declaration 
and payment of the tax on these supplies.'; 

(68) 

Article 165 is deleted. 

EN 

32 

  EN 

 
(69) 

Article 168 is amended as follows: 

(a)  point (b) is replaced by the following: 

'(b) 

the  VAT  due  in  respect  of  transactions  treated  as  supplies  of  goods  or 
services pursuant to Article 17(1), point (a) of Article 18 and Article 27;', 

(b)  points (c) and (d) are deleted; 

(70) 

in Article 169, points (b) and (c) are replaced by the following: 

'(b) 

(c) 

transactions which are exempt pursuant to Articles 142 or 144, Articles 146 to 
149, Articles 151, 152, 153 or 156, point (b) of Article 157(1), Articles 158 to 
161 or Article 164; 

transactions  which  are  exempt  pursuant  to  points  (a)  to  (f)  of  Article  135(1), 
where  the  customer  is  established  outside  the  Union  or  where  those 
transactions relate directly to goods to be exported out of the Union.'; 

(71) 

in Article 170, point (b) is replaced by the following: 

'(b) 

transactions for which the tax is solely payable by the customer in accordance 
with Articles 194, 196 or 199.'; 

(72) 

Article 171 is amended as follows:  

(a)  paragraph 2 is replaced by the following: 

'2. 
VAT  shall  be  refunded  to  taxable  persons  who  are  not  established 
within the territory of the Union in accordance with the detailed implementing 
rules laid down in Directive 86/560/EEC. 

The taxable persons referred to in Article 1 of Directive 86/560/EEC shall also, 
for the purposes of applying that Directive, be regarded as taxable persons who 
are  not  established  in  the  Union  where,  in  the  Member  State  in  which  they 
purchase goods and services or import goods subject to VAT, they have only 
carried  out  the  supply  of  goods  or  services  to  a  person  designated  in 
accordance with Articles 194, 196 or 199 as liable for payment of VAT.', 

(b) 

in paragraph 3, point (b) is replaced by the following: 

'(b) 

invoiced amounts of VAT in respect of supplies of goods the supply of 
which is, or may be, exempt pursuant to point (b) of Article 146(1).'; 

(73) 

the first paragraph of Article 171a is replaced by the following: 

'Member  States  may,  instead  of  granting  a  refund  of  VAT  pursuant  to  Directives 
86/560/EEC or 2008/9/EC on those supplies of goods or services to a taxable person 
in  respect  of  which  the  taxable  person  is  liable  to  pay  the  tax  in  accordance  with 
Articles 194, 196 or 199, allow deduction of this tax pursuant to the procedure laid 
down  in  Article  168.  The  existing  restrictions  pursuant  to  Article  2(2)  and  Article 
4(2) of Directive 86/560/EEC may be retained.'; 

(74) 

in Article 172(1), the first subparagraph is replaced by the following: 

'1.  Any person who is regarded as a taxable person by reason of the fact that he 
supplies, on an occasional basis, a new means of transport in accordance with Article 
9(2) shall, in the Member State in which the dispatch or transport of the new means 
of  transport  to  the  customer  begins,  be  entitled  to  deduct  the  VAT  due  or  paid  in 
respect  of  the  acquisition  or  importation  of  the  new  means  of  transport,  up  to  an 
amount not exceeding the amount of VAT for which he would be liable if the supply 

EN 

33 

  EN 

 
were subject to VAT in the Member State in which the dispatch or transport of the 
new means of transport to the customer begins.'; 

(75) 

in Article 175(2), the second subparagraph is replaced by the following: 

'However, Member States may retain the rules in force at 1 January 1979 or, in the 
case of the Member States which acceded to the Union after that date, on the date of 
their accession.'; 

(76) 

in Article 176, the second paragraph is replaced by the following: 

'Pending  the  entry  into  force  of  the  provisions  referred  to  in  the  first  paragraph, 
Member States may retain all the exclusions provided for under their national laws at 
1 January 1979 or, in the case of the Member States which acceded to the Union after 
that date, on the date of their accession.'; 

(77) 

in Article 177, the second paragraph is replaced by the following: 

'In order to maintain identical conditions of competition, Member States may, instead 
of  refusing  deduction,  tax  goods  manufactured  by  the  taxable  person  himself  or 
goods which he has purchased within the Union, or imported, in such a way that the 
tax does not exceed the amount of VAT which would be charged on the acquisition 
of similar goods.'; 

(78) 

Article 178 is amended as follows: 

(a)  points (c) and (d) are deleted, 

(b)  point (f) is replaced by the following: 

'(f)  when required to pay VAT as a customer where Articles 194, 196 or 199 
apply, he must comply with the formalities as laid down by each Member 
State.'; 

(79) 

(80) 

Article 181 is deleted; 

Article 182 is replaced by the following: 

'Article 182 

Member States shall determine the conditions and detailed rules for applying Article 
180.'; 

(81) 

Article 193 is replaced by the following: 

'Article 193 

VAT shall be payable by any taxable person carrying out a taxable supply of goods 
or services, except where it is payable by another person in the cases referred to in 
Articles 194 to 200 and Article 202.'; 

(82) 

in Article 194, paragraph 1 is replaced by the following: 

'1.  Where the taxable supply of services is carried out by a taxable person who is 
not established in the Member State in which the VAT is due, Member States may 
provide that the person liable for payment of VAT is the person to whom the services 
are supplied.'; 

(83) 

the following Article 194a is inserted: 

EN 

34 

  EN 

 
'Article 194a 

VAT  shall  be  payable  by  the  person  to  whom  the  goods  are  supplied  insofar  he  is 
granted the status of certified taxable person pursuant to Article 13a if the goods are 
supplied by a taxable person not established within the territory of the Member State 
in which the VAT is due.'; 

(84) 

(85) 

(86) 

Article 195 is deleted; 

Article 197 is deleted; 

Article 199a is amended as follows: 

(a) 

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

Member  States  may,  until  31  December  2028  provide  that  the  person 
'1. 
liable for payment of VAT is the taxable person to whom any of the following 
supplies are made:', 

(b) 

in paragraph 1, points (c), (d), (e), (h), (i) and (j) are deleted, 

(c)  paragraph 1b is replaced by the following: 

'1b. 
The  application  of  the  mechanism  provided  for  in  paragraph 1  to  the 
supply  of  any  of  the  services  listed  in  points (f)  and  (g)  of  that  paragraph  is 
subject to the introduction of appropriate and effective reporting obligations on 
taxable persons who supply the services to which the mechanism provided for 
in paragraph 1 applies.', 

(d)  paragraphs 3 to 5 are replaced by the following: 

'3. 
Member  States  applying  the  mechanism  provided  for  in  paragraph 1 
shall,  on  the  basis  of  the  evaluation  criteria  provided  for  under  point (c)  of 
paragraph 2,  submit  a  report  to  the  Commission  no  later  than  30 June  2027. 
The  report  shall  clearly  indicate  the  information  to  be  treated  as  confidential 
and the information which may be published. 

The  report  shall  provide  a  detailed  assessment  of  the  measure’s  overall 
effectiveness and efficiency, in particular as regards: 

(a) 

the  impact  on  fraudulent  activities  in  relation  to  supplies  of  services 
covered by the measure; 

(b) 

the possible shift of fraudulent activities to other services; 

(c) 

the compliance costs for taxable persons resulting from the measure. 

4. 
Each  Member  State  that  has  detected  a  shift  in  trends  of  fraudulent 
activities in its territory in relation to the services listed in paragraph 1 from the 
date  of  entry  into  force  of  this  Article  with  respect  to  such  services,  shall 
submit a report to the Commission in that respect no later than 30 June 2027. 

5. 
Before 1 January 2028, the Commission shall present to the European 
Parliament and to the Council an overall assessment report on the effects of the 
mechanism provided for in paragraph 1 on combatting fraud.'; 

(87) 

in Article 199b, paragraph 1 is replaced by the following: 

'1.  A Member State may, in cases of imperative urgency and in accordance with 
paragraphs  2  and  3,  designate  the  recipient  as  the  person  liable  to  pay  VAT  on 
specific  supplies  of  services  by  derogation  from  Article  193  as  a  Quick  Reaction 

EN 

35 

  EN 

 
Mechanism ('QRM')  special measure  to  combat sudden  and  massive fraud liable to 
lead to considerable and irreparable financial losses.  

The  QRM  special  measure  shall  be  subject  to  appropriate  control  measures  by  the 
Member State with respect to taxable persons who supply the services to which that 
measure applies, and shall be for a period not exceeding nine months.'; 

(88) 

Article 200 is replaced by the following: 

'Article 200 

VAT shall be payable by the person to whom a new means of transport is supplied in 
accordance  with  Articles  35a  or  35b,  where  the  supplier  is  a  taxable  person  in 
accordance with Article 9(2). 

For  the  purposes  of  this  provision,  a  taxable  person  who  is  subject  to  the  common 
flat-rate scheme for farmers for the purposes of his agricultural, forestry or fisheries 
business and a taxable person who carries out only supplies of goods and services in 
respect  of  which  VAT  is  not  deductible  shall  be  considered  as  a  taxable  person  in 
accordance with Article 9(2).'; 

(89) 

in Article 204, paragraph 1 is replaced by the following: 

'1.  Where, pursuant  to Articles 193 to 196 and  Articles 199 and 200, the person 
liable for payment of VAT is a taxable person who is not established in the Member 
State in which the VAT is due, Member States may allow that person to appoint a tax 
representative as the person liable for payment of the VAT. 

Furthermore, where the taxable transaction is carried out by a taxable person who is 
not established in the Member State in which the VAT is due and no legal instrument 
exists,  with  the  country  in  which  that  taxable  person  is  established  or  has  his  seat, 
relating  to  mutual  assistance  similar  in  scope  to  that  provided  for  in  Directive 
2010/24/EU  (*)  and  Regulation  (EC)  No  904/2010,  Member  States  may  take 
measures  to  provide  that  the  person  liable  for  payment  of  VAT  is  to  be  a  tax 
representative appointed by the non-established taxable person. 

However,  Member  States  may  not  apply  the  option  referred  to  in  the  second 
subparagraph to a taxable person not established within the Union who has opted for 
the special scheme provided for in Section 2 of Chapter 6 of Title XII.'; 

_________________________________________________________________ 

(*)  Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance 
for  the  recovery  of  claims  relating  to  taxes,  duties  and  other  measures(OJ  L  84, 
31.3.2010, p. 1). 

(90) 

Article 205 is replaced by the following: 

'Article 205 

In the situations referred to in Articles 193 to 199b and Articles 202, 203 and 204, 
Member States may provide that a person other than the person liable for payment of 
VAT is to be held jointly and severally liable for payment of VAT.'; 

(91) 

in Article 207, the first paragraph is replaced by the following: 

'Member  States  shall  take  the  measures  necessary  to  ensure  that  persons  who  are 
regarded  as  liable  for  payment  of  VAT  in  the  stead  of  a  taxable  person  not 

EN 

36 

  EN 

 
established  in  their  respective  territory,  in  accordance  with  Articles  194,  196,  199 
and 204, comply with the payment obligations set out in this Section.'; 

(92) 

(93) 

(94) 

Articles 209 and 210 are deleted; 

in Article 213, paragraph 2 is deleted; 

Article 214(1) is amended as follows: 

(a)  points (a) and (b) are replaced by the following: 

'(a)  every  taxable  person,  with  the  exception  of  those  referred  to  in 
Article 9(2), who within their respective territory carries out supplies of 
goods  or  services  in  respect  of  which  VAT  is  deductible,  other  than 
supplies of goods or services in respect of which VAT is payable solely 
by  the  customer  or  the  person  for  whom  the  goods  or  services  are 
intended, in accordance with Articles 194 to 196 and Article 199; 

(b) 

every taxable person, or non-taxable legal person, who is the recipient of 
an intra-Union supply of goods;', 

(b)  point (c) is deleted; 

(c) 

the following point (f) is added: 

'(f) 

every  taxable  person,  with  the  exception  of  those  referred  to  in 
Article 9(2), established within their respective territory who carries out 
only intra-Union supplies of goods.'; 

(95) 

Article 216 is replaced by the following: 

'Article 216 

Member  States  shall  take  the  measures  necessary  to  ensure  that  their  identification 
systems enable the taxable persons referred to in Article 214 to be identified.'; 

(96) 

point (a) of Article 219a(2) is amended as follows: 

(a)  point (ii) is replaced by the following: 

'(ii) 

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

(b) 

the following point (iii) is added: 

'(iii)  the  supplier  is  not  established  in  the  Member  State  in  which  he  carries 
out an intra-Union supply of goods for which he is liable for the payment 
of  VAT  and  is  not  making  use  of  the  special  scheme  referred  to  in 
Section 3 of Chapter 6 of Title XII;'; 

(97) 

in Article 220(1), points (3) and (4) are replaced by the following: 

'(3)  supplies of new means of transport in accordance with Article 35b; 

(4) 

any  payment  on  account  made  to  him  before  one  of  the  supplies  of  goods 
referred to in points (1) and (2) was carried out except for intra-Union supplies 
of goods;'; 

(98) 

in Article 220a, paragraph 2 is replaced by the following:  

'2.  Member States shall not allow taxable persons to issue a simplified invoice in 
respect of the following: 

EN 

37 

  EN 

 
(a) 

for intra-Union supplies of goods; 

(b)  where invoices are required to be issued pursuant to point (2) of Article 220(1); 

(c)  where the taxable supply of goods or services is carried out by a taxable person 
who is not established in the Member State in which the VAT is due, or whose 
establishment in that Member State does not intervene in the supply within the 
meaning of Article 192a, and the person liable for the payment of VAT is the 
person to whom the goods or services are supplied.'; 

(99) 

in Article 221, paragraph 3 is replaced by the following: 

'3.  Member  States  may  release  taxable  persons  from  the  obligation  laid  down  in 
Article 220(1)  or  in  Article 220a  to  issue  an  invoice  in  respect  of  supplies  of 
goods  or  services  which  they  have  made  in  their  territory  and  which  are 
exempt, with or without deductibility of the VAT paid in the preceding stage, 
pursuant  to  Article 132,  points (h)  to  (l)  of  Article 135(1),  Articles 136,  371, 
375, 376 and 377, Articles 378(2) and 379(2) and Articles 380 to 390c.'; 

(100) 

in Article 222, the first paragraph is replaced by the following: 

'For  intra-Union  supplies  of  goods,  for  supplies  of  new  means  of  transport  in 
accordance with Article 35b or for supplies of services for which VAT is payable by 
the customer pursuant to Article 196, an invoice shall be issued no later than on the 
fifteenth day of the month following that in which the chargeable event occurs.'; 

(101)  Article 225 is replaced by the following: 

'Article 225 

Member States may impose specific conditions on taxable persons in cases where the 
third  party,  or  the  customer,  who  issues  invoices  is  established  in  a  country  with 
which no legal instrument exists relating to mutual assistance similar in scope to that 
provided for in Directive 2010/24/EU and Regulation (EC) No 904/2010.'; 

(102)  Article 226 is amended as follows:  

(a)  point (4) is replaced by the following: 

'(4) 

the customer’s VAT identification number, as referred to in Article 214, 
under which the customer received an intra-Union supply of goods or a 
supply of goods and services in respect of which he is liable for payment 
of VAT;', 

(b)  point (12) is replaced by the following: 

'(12)  in the case of an intra-Union supply of a new means of transport or of a 
supply  of  a  new  means  of  transport  as  referred  to  in  Article  35b,  the 
characteristics as identified in Article 9(3);'; 

(103)  Article 230 is replaced by the following: 

'Article 230 

The  amounts  which  appear  on  the  invoice  may  be  expressed  in  any  currency, 
provided  that  the  amount  of  VAT  payable  or  to  be  adjusted  is  expressed  in  the 
national currency of the Member State in which that amount of VAT is payable or is 
to be adjusted, using the conversion rate mechanism provided for in Article 91.'; 

EN 

38 

  EN 

 
(104)  Article 235 is replaced by the following: 

'Article 235 

Member  States  may  lay  down  specific  conditions  for  electronic  invoices  issued  in 
respect of goods or services supplied in their territory from a country with which no 
legal instrument exists relating to mutual assistance similar in scope to that provided 
for in Directive 2010/24/EU and Regulation (EC) No 904/2010.'; 

(105) 

in Article 238, paragraph 3 is replaced by the following: 

The simplified arrangements  provided for in  paragraph 1 shall  not  be applied 

'3. 
where invoices are required to be issued in respect of the following: 

(a) 

intra-Union supplies of goods; 

(b)  pursuant to point (2) of Article 220(1); 

(c)  where the taxable supply of goods or services is carried out by a taxable person 
who is not established in the Member State in which the VAT is due or whose 
establishment in that Member State does not intervene in the supply within the 
meaning of Article 192a and the person liable for the payment of VAT is the 
person to whom the goods or services are supplied.'; 

(106)  Article 239 is replaced by the following: 

'Article 239 

In  cases  where  Member  States  make  use  of  the  option  under  point (b)  of  the  first 
subparagraph  of  Article 272(1)  of  not  allocating  a  VAT  identification  number  to 
taxable  persons  who  do  not  carry  out  any  of  the  transactions  referred  to  in 
Articles 14(4),  17(1)  and  36,  and  where  the  supplier  or  the  customer  has  not  been 
allocated  an  identification  number  of  that  type,  another  number  called  the  tax 
reference  number,  as  defined  by  the  Member  States  concerned,  shall  be entered  on 
the invoice instead.'; 

(107) 

in Article 240, point (1) is replaced by the following: 

'(1) 

in respect of the supply of services, as referred to in Articles 44, 47, 50, 53, 54 
and  55,  the  VAT  identification  number  and  the  tax  reference  number  of  the 
supplier;'; 

(108) 

in Article 242a, paragraph 1 is replaced by the following: 

'1.   Where  a  taxable  person  facilitates,  through  the  use  of  an  electronic  interface 
such  as  a  market  place,  platform,  portal  or  similar  means,  the  supply  of  goods  or 
services to a non-taxable persons within the Union in accordance with the provisions 
of  Title  V,  the  taxable  person  who  facilitates  the  supply  shall  be  obliged  to  keep 
records  of  those  supplies.  These  records  shall  be  sufficiently  detailed  to  enable  the 
tax authorities of the Member States where those supplies are taxable to verify that 
VAT has been accounted for correctly.'; 

(109) 

in Article 243, paragraph 1 is replaced by the following: 

'1. 
Every  taxable  person  shall  keep  a  register  of  the  goods  dispatched  or 
transported  by  him,  or  on  his  behalf,  to  a  destination  outside  the  territory  of  the 
Member  State  of  departure  but  within  the  Union  for  the  purposes  of  transactions 

EN 

39 

  EN 

 
consisting  in  valuations  of  those  goods  or  work  on  them  or  their  temporary  use  as 
referred to in points (f), (g) and (h) of Article 17(2).'; 

(110) 

in Article 247, paragraph 3 is replaced by the following: 

'3. 
The Member State referred to in paragraph 1 may lay down specific conditions 
prohibiting  or  restricting  the  storage  of  invoices  in  a  country  with  which  no  legal 
instrument exists relating to mutual assistance similar in scope to that provided for in 
Directive 2010/24/EU and Regulation (EC) No 904/2010 or to the right referred to in 
Article 249 to access by electronic means, to download and to use.'; 

(111)  Article 251 is deleted; 

(112)  Article 254 is replaced by the following: 

'Article 254 

In  the case new  means of transport are supplied in  accordance  with Articles 35a or 
35b and the person to whom the supply is made is liable for VAT in accordance with 
Article 200,  Member  States  shall  take  the  measures  necessary  to  ensure  that  the 
vendor  communicates  all  the  information  needed  for  VAT  to  be  applied  and  its 
application checked by the tax authorities.'; 

(113)  Article 257 is deleted; 

(114)  Articles 258 and 259 are replaced by the following: 

'Article 258 

1.  Member States shall lay down detailed rules for the submission of VAT returns 
by the person liable for VAT in accordance with Article 200 in respect of supplies of 
new means of transport made in accordance with Articles 35a or 35b. 

Paragraph  1  shall  not  apply  to  taxable  persons  that  submit  VAT  returns  in 

2. 
accordance with Article 250. 

Article 259 

Member States may require persons to whom new means of transport are supplied, to 
provide,  when  submitting  the  VAT  return  referred  to  in  Article  258(1),  all  the 
information  needed  for  VAT  to  be  applied  and  its  application  checked  by  the  tax 
authorities.'; 

(115) 

in Article 261, paragraph 1 is replaced by the following: 

'1.  Member States may require the taxable person to submit a return showing all 
the particulars specified in Article 250 in respect of all transactions carried out in the 
preceding  year.  That  return  shall  provide  all  the  information  necessary  for  any 
adjustments.'; 

(116)  Article 262 is replaced by the following: 

'Article 262 

Every  taxable  person  identified  for  VAT  purposes  shall  submit  a  recapitulative 
statement  of  the  taxable  persons,  and  the  non-taxable  legal  persons  identified  for 
VAT  purposes,  to  whom  he  has  supplied  services,  other  than  services  that  are 

EN 

40 

  EN 

 
exempted from VAT in  the Member State where the transaction is taxable, and for 
which the recipient is liable to pay the tax pursuant to Article 196.'; 

(117)  Article 263 is amended as follows: 

(a) 

in paragraph 1, the following subparagraph is added: 

'Member States may, in accordance with the conditions and limits which they 
may lay down, allow taxable persons to submit the recapitulative statement for 
each  calendar  quarter  within  a  time  limit  not  exceeding  one  month  from  the 
end of the quarter.', 

(b)  paragraphs 1a, 1b and 1c are deleted; 

(118)  Article 264 is amended as follows: 

(a) 

in paragraph 1, points (a) and (b) are replaced by the following: 

'(a) 

the VAT identification number of the taxable person in the Member State 
in which the recapitulative statement must be submitted and under which 
he effected taxable supplies of services in accordance with the conditions 
laid down in Article 44; 

(b) 

the VAT identification number of the person receiving the services in a 
Member State other than that in which the recapitulative statement must 
be submitted and under which the services were supplied to him;', 

(b) 

(c) 

in paragraph 1, point (c) is deleted, 

in paragraph 1, point (d) is replaced by the following: 

'(d) 

for each person who received services, the total value of the supplies of 
services carried out by the taxable person;', 

(d) 

in paragraph 1, point (e) is deleted, 

(e)  paragraph 2 is replaced by the following: 

The value referred to in paragraph 1(d) shall be declared for the period 
'2. 
of submission established in accordance with Article 263(1) during which VAT 
became chargeable. 

The  amounts  referred  to  in  paragraph  1(f)  shall  be  declared  for  the  period  of 
submission  established  in  accordance  with  Article  263(1)  during  which  the 
person acquiring the goods was notified of the adjustment.'; 

(119)  Articles 265, 268, 269 and 270 are deleted; 

(120)  Article 271 is replaced by the following: 

'Article 271 

After consulting the VAT Committee, Member States which set at over three months 
the  tax  period  in  respect  of  which  taxable  persons  must  submit  the  VAT  return 
provided  for  in  Article  250  may  permit  such  persons  to  submit  recapitulative 
statements  in  respect  of  the  same  period  where  the  total  annual  value, exclusive  of 
VAT, of the supplies of goods and services of those taxable persons does not exceed 
EUR 200 000 or the equivalent in national currency.'; 

(121)  Article 272 is amended as follows: 

(a) 

in paragraph 1, point (a) is deleted, 

EN 

41 

  EN 

 
(b) 

in paragraph 1, point (b) is replaced by the following: 

'(b) 

taxable  persons  carrying  out  none  of  the  transactions  referred  to  in 
Articles 14(4), 17(1) and 36;', 

(c)  paragraph 2 is replaced by the following: 

'2. 
If  Member  States  exercise  the  option  under  point (e)  of  the  first 
subparagraph of paragraph 1, they shall take the measures necessary to ensure 
the  correct  application  of  the  arrangements  for  the  taxation  of  intra-Union 
transactions.'; 

(122)  Articles 274 to 280 are replaced by the following: 

'Article 274 

Articles 275, 276 and 277 shall apply to the importation of goods in free circulation 
which enter the Union from a third territory forming part of the customs territory of 
the Union. 

Article 275 

The  formalities  relating  to  the  importation  of  the  goods  referred  to  in  Article  274 
shall be the same as those laid down by the Union customs provisions in force for the 
importation of goods into the customs territory of the Union. 

Article 276 

Where  dispatch  or  transport  of  the  goods  referred  to  in  Article  274  ends  at  a  place 
situated outside the Member State of their entry into the Union, they shall circulate 
within the Union under the Union transit procedure laid down by the Union customs 
provisions in force, in so far as they have been the subject of a declaration placing 
them under that procedure on their entry into the Union. 

Article 277 

Where, on their entry into the Union, the goods referred to in Article 274 are in one 
of the situations which would entitle them, if they were imported within the meaning 
of  the  first  paragraph  of  Article  30,  to  be  covered  by  one  of  the  arrangements  or 
situations referred to in Article 156, or by a temporary importation arrangement with 
full exemption from import duties, Member States shall take the measures necessary 
to ensure that the goods may remain in the Union under the same conditions as those 
laid down for the application of those arrangements or situations. 

Article 278 

Articles 279 and 280 shall apply to the exportation of goods in free circulation which 
are dispatched or transported from a Member State to a third territory forming part of 
the customs territory of the Union. 

Article 279 

The  formalities  relating  to  the  exportation  of  the  goods  referred  to  in  Article  278 
from  the  territory  of  the  Union  shall  be  the  same  as  those  laid  down  by  the  Union 

EN 

42 

  EN 

 
customs provisions in force for the exportation of goods from the customs territory of 
the Union. 

Article 280 

In the case of goods which are temporarily exported from the Union, in order to be 
reimported,  Member  States  shall  take  the  measures  necessary  to  ensure  that,  on 
reimportation into the Union, such goods may be covered by the same provisions as 
would have applied if they had been temporarily exported from the customs territory 
of the Union.'; 

(123) 

in Article 283(1), point (b) is replaced by the following: 

'(b)  supplies of new means of transport carried out in accordance with Articles 35a 

or 35b;'; 

(124) 

in Article 300, point (2) is deleted; 

(125)  Article 303 is amended as follows: 

(a)  paragraph 2 is replaced by the following: 

Member States shall refund to the customer the amount of the flat-rate 

'2. 
compensation he has paid in respect of any of the following transactions: 

(a) 

(b) 

(c) 

the supply of agricultural products dispatched or transported outside the 
territory of the Member State of supply to a taxable customer established 
within the Union but  in another Member State in  so far as the products 
are used by that customer for the purposes of the transactions referred to 
in Article 169(a) and (b); 

the  supply  of  agricultural  products,  carried  out  in  accordance  with  the 
conditions specified in Articles 146, 147, 148 and 156, Article 157(1)(b) 
and Articles 158, 160 and 161, to a taxable customer established outside 
the  Union,  in  so  far  as  the  products  are  used  by  that  customer  for  the 
purposes  of  the  transactions  referred  to  in  Article 169(a)  and  (b)  or  for 
the  purposes  of  supplies  of  services  which  are  deemed  to  take  place 
within  the  territory  of  the  Member  State  in  which  the  customer  is 
established  and  in  respect  of  which  VAT  is  payable  solely  by  the 
customer pursuant to Article 196; 

the  supply  of  agricultural  services  to  a  taxable  customer  established 
within the Union but  in another Member State or  to  a taxable customer 
established  outside  the  Union,  in  so  far  as  the  services  are  used  by  the 
customer for the purposes of the transactions referred to in Article 169(a) 
and (b) or for the purposes of supplies of services which are deemed to 
take place within the territory of the Member State in which the customer 
is  established  and  in  respect  of  which  VAT  is  payable  solely  by  the 
customer pursuant to Article 196.', 

(b)  paragraph 3 is replaced by the following: 

'3. 
Member  States  shall  determine  the  method  by  which  the  refunds 
provided for in paragraph 2 are to be made. In  particular, they may apply the 
provisions of Directives 2008/9/EC and 86/560/EEC.'; 

(126)  Article 305 is replaced by the following: 

EN 

43 

  EN 

 
'Article 305 

'Whenever  Member  States  apply  this  flat-rate  scheme,  they  shall  take  all  measures 
necessary to ensure that the supply of agricultural products between Member States, 
carried  out  in  accordance  with  Article  33(1),  is  always  taxed  in  the  same  way, 
whether the supply is effected by a flat-rate farmer or by another taxable person.'; 

(127)  Article 309 is replaced by the following: 

'Article 309 

If transactions entrusted by the travel agent to other taxable persons are performed by 
such persons outside the Union, the supply of services carried out by the travel agent 
shall be treated as an intermediary activity exempted pursuant to Article 153. 

If the transactions are performed both inside and outside the Union, only that part of 
the  travel  agent’s  service  relating  to  transactions  outside  the  Union  may  be 
exempted.'; 

(128) 

in Article 311, the introductory words of paragraph 1 are replaced by the following: 

For  the  purposes  of  this  Chapter,  and  without  prejudice  to  other  Union 

'1. 
provisions, the following definitions shall apply:'; 

(129) 

in Article 313, paragraph 2 is replaced by the following: 

'2. 
The  scheme  referred  to  in  paragraph  1  of  this  Article  shall  not  apply  to  the 
supply  of  new  means  of  transport,  carried  out  in  accordance  with  Articles  35a  and 
35b.'; 

(130) 

in Article 314, the introductory words are replaced by the following: 

'The  margin  scheme  shall  apply  to  the  supply  by  a  taxable  dealer  of  second-hand 
goods,  works  of  art,  collectors’  items  or  antiques  where  those  goods  have  been 
supplied to him within the Union by one of the following persons:'; 

(131) 

in Title XII, Chapter 4, Section 2, Subsection 2 is deleted; 

(132) 

in Article 333, paragraph 2 is replaced by the following: 

'2. 
The  arrangements  referred  to  in  paragraph 1  shall  not  apply  to  the  supply  of 
new  means  of  transport,  carried  out  in  accordance  with  the  conditions  specified  in 
Articles 35a or 35b.'; 

(133)  Article 341 is deleted; 

(134) 

in Article 344, the introductory words of paragraph 1 are replaced by the following: 

For  the  purposes  of  this  Directive,  and  without  prejudice  to  other  Union 

'1. 
provisions, ‘investment gold’ shall mean:'; 

(135)  Article 346 is replaced by the following: 

'Article 346 

Member States shall exempt from VAT the supply and the importation of investment 
gold,  including  investment  gold  represented  by  certificates  for  allocated  or 
unallocated gold or traded on gold accounts and including, in particular, gold loans 
and swaps, involving a right of ownership or claim in respect of investment gold, as 
well  as  transactions  concerning  investment  gold  involving  futures  and  forward 

EN 

44 

  EN 

 
contracts leading to a transfer of right of ownership or claim in respect of investment 
gold.'; 

(136)  Article 352 is replaced by the following: 

'Article 352 

Each  Member  State  may,  after  consulting  the  VAT  Committee,  apply  VAT  to 
specific  transactions  relating  to  investment  gold  which  take  place  in  that  Member 
State between taxable persons who are members of a gold bullion market regulated 
by  the  Member  State  concerned  or  between  such  a  taxable  person  and  another 
taxable person who is not a member of that market. However, the Member State may 
not apply VAT to exports of investment gold.'; 

(137) 

in Article 354, point (b) is replaced by the following: 

'(b) 

the VAT due or paid in respect of a supply to him or importation carried out by 
him, of gold other than investment gold which is subsequently transformed by 
him or on his behalf into investment gold;'; 

(138)  Article 355 is replaced by the following: 

'Article 355 

Taxable  persons  who  produce  investment  gold  or  transform  gold  into  investment 
gold shall be entitled to deduct the VAT due or paid by them in respect of the supply 
or importation of goods or services linked to the production or transformation of that 
gold, as if the subsequent supply of the gold exempted pursuant to Article 346 were 
taxed.'; 

(139) 

in Article 356, paragraph 2 is replaced by the following: 

'2.  Member  States  may  accept  equivalent  obligations  under  measures  adopted 
pursuant to other Union legislation, such as Directive (EU) 2015/849 of the European 
Parliament and of the Council (*) to comply with the requirements under paragraph 
1.' 

_________________________________________________________________ 

(*)  Directive (EU) 2015/849 of the European Parliament and of the Council of 20 
May  2015  on  the  prevention  of  the  use  of  the  financial  system  for  the  purposes  of 
money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of 
the European Parliament and of the Council, and repealing Directive 2005/60/EC of 
the European Parliament and of the Council and Commission Directive 2006/70/EC 
(OJ L 141, 5.6.2015, p. 73). 

(140) 

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

'Special schemes for non-established taxable persons' 

(141) 

in Article 358, the introductory words are replaced by the following: 

'For  the  purposes  of  this  Chapter, and  without prejudice  to  other  Union  provisions, 
the following definitions shall apply:'; 

(142) 

in Title XII, Chapter 6, the heading of Section 2 is replaced by the following: 

EN 

45 

  EN 

 
'Special scheme for services supplied by taxable persons not established 
within the Union'; 

(143)  Articles 358a to 362 are replaced by the following: 

'Article 358a 

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

(1) 

(2) 

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

‘Member  State  of  identification’  means  the  Member  State  which  the  taxable 
person  not  established  within  the  Union  chooses  to  contact  to  state  when  his 
activity  as  a  taxable  person  within  the  territory  of  the  Union  commences  in 
accordance with the provisions of this Section. 

(3) 

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

Article 359 

Member  States  shall  permit  any  taxable  person  not  established  within  the  Union 
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 Union. 

Article 360 

The taxable person not established within the Union shall state to the Member State 
of  identification  when  he  commences  or  ceases  his  activity  as  a  taxable  person,  or 
changes that activity in such a way that he no longer meets the conditions necessary 
for use of this special scheme. He shall communicate that information electronically. 

Article 361 

1. 
The  information  which  the  taxable  person  not  established  within  the  Union 
must  provide  to  the  Member  State  of  identification  when  he  commences  a  taxable 
activity shall contain the following details: 

(a) 

name; 

(b)  postal address; 

(c) 

electronic addresses, including websites; 

(d)  national tax number, if any; 

(e) 

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

The taxable person not established within the Union shall notify the Member 

2. 
State of identification of any changes in the information provided. 

EN 

46 

  EN 

 
Article 362 

The  Member  State  of  identification  shall  allocate  to  the  taxable  person  not 
established  within  the  Union  an  individual  VAT  identification  number  for  the 
application of this special scheme and shall notify him of that number by electronic 
means. On the basis of the information used for that identification, Member States of 
consumption may have recourse to their own identification systems.'; 

(144) 

in Article 363, the introductory words are replaced by the following: 

'The  Member  State  of  identification  shall  delete  the  taxable  person  not  established 
within the Union from the identification register in the following cases:'; 

(145)  Article 364 is replaced by the following: 

'Article 364 

The  taxable  person  not  established  within  the  Union  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  by  the  end  of  the 
month following the end of the tax period covered by the return.'; 

(146) 

in Article 366(1), the second subparagraph is replaced by the following: 

'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 not established within the Union shall, for the purposes 
of completing the VAT return, use the exchange rate applying on the last day of the 
tax period.'; 

(147) 

in Article 367, the first paragraph is replaced by the following: 

'The  taxable  person  not  established  within  the  Union  shall  pay  the  VAT,  making 
reference to the relevant VAT return, when submitting the VAT return, at the latest, 
however, at the expiry of the deadline by which the return must be submitted.'; 

(148) 

in Article 368, the first paragraph is replaced by the following: 

'The  taxable  person  not  established  within  the  Union  making  use  of  this  special 
this  Directive. 
scheme  may  not  deduct  VAT  pursuant 
Notwithstanding  Article 1(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.'; 

to  Article 168  of 

(149) 

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

The taxable person not established within the Union shall keep records of the 
'1. 
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.'; 

(150) 

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

'Special scheme for goods and services supplied by taxable persons not 
established in the Member State of taxation' 

(151)  Articles 369a, 369b and 369c are replaced by the following: 

EN 

47 

  EN 

 
'Article 369a 

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

(1) 

(2) 

(3) 

(4) 

‘taxable  person  not  established  in  the  Member  State  of  taxation’  means  a 
taxable person who has established his business in the territory of the Union or 
has a fixed establishment there but has not established his business and has no 
fixed establishment within the territory of the Member State of taxation;', 

‘Member  State  of  taxation’  means  the  Member  State  in  which  the  supply  of 
goods  or  services  is  deemed  to  take  place  according  to  Chapters  1  and  3  of 
Title V; 

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

‘intermediary’  means  a  person  established  in  the  Union  appointed  by  the 
taxable  person  not  established  within  the  Union  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 that taxable person. 

(5) 

'Member State of identification' means the following: 

(a) 

the  Member  State  in  the  territory  of  which  the  taxable  person  has 
established  his  business  or,  if  he  has  not  established  his  business  in  the 
Union, where he has a fixed establishment; 

(b)  where a taxable person has not established his business in the Union, but 
has more than one fixed establishment therein, the Member State with a 
fixed establishment where that taxable person indicates that he will make 
use of this special scheme; 

(c)  where  a  taxable  person  is  not  established  within  the  Union  but  has 
appointed an intermediary, the Member State in which that intermediary 
has  established  his  business  or  if  he  has  not  established  his  business  in 
the Union, where he has a fixed establishment; 

(d)  where  a  taxable  person  is  not  established  within  the  Union  but  has 
appointed  an  intermediary  who  has  established  his  business  outside  the 
Union  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. 

For  the  purposes  of  points  (b)  and  (d),  where  a  taxable  person  or  an 
intermediary,  as  appropriate,  has  more  than  one  fixed  establishment  in  the 
Union  he  shall  be  bound  by  the  decision  to  indicate  the  Member  State  of 
establishment  for  the  calendar  year  concerned  and  the  two  calendar  years 
following. 

Article 369b 

1.  Member States shall permit the use of this special scheme for supplies of goods 
and services for which the person liable to pay the value added tax is either: 

(a) 

a taxable person not established in the Member State of taxation; 

EN 

48 

  EN 

 
(b) 

a  taxable  person  not  established  within  the  Union  who  has  appointed  and 
mandated an intermediary. 

This  special  scheme  applies  to  all  those  goods  or  services  supplied  in  the  Union 
except  for  the  distance  sales  of  goods  imported  from  third  territories  or  third 
countries covered by the special scheme in Section 4 of this Chapter. 

2. 
Taxable  persons  not  established  within  the  Union  who  are  only  supplying 
services  to  non-taxable  persons  who  are  either  established  or  have  their  permanent 
address or usually reside in a Member State and therefore can make use of the special 
scheme of Section 2 of this Chapter shall be excluded from the use of this scheme. 

A taxable person not established within the Union cannot apply simultaneously 

3. 
this special scheme and the special scheme of Section 2 of this Chapter. 

For the purposes of letter (b) of paragraph 1, a taxable person not established 

4. 
within the Union cannot appoint more than one intermediary at the same time. 

Article 369c 

A taxable person or the intermediary acting on his behalf 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.'; 

(152) 

the following Article 369ca is inserted: 

'Article 369ca 

The information which the intermediary must provide to the Member State of 
1. 
identification  before  he  commences  the  use  of  this  special  scheme  on  behalf  of  a 
taxable person shall contain the following details: 

(a) 

name; 

(b)  postal address; 

(c) 

electronic address; 

(d)  VAT identification number. 

2. 
The information which the intermediary must provide to the Member State of 
identification  in  respect  of  each  taxable  person  which  he  represents  before  that 
taxable person commences the use of this special scheme shall contain the following 
details: 

(a) 

name; 

(b)  postal address; 

(c) 

electronic address and websites; 

(d)  VAT identification number or national tax number; 

(e) 

his  individual  identification  number  allocated  in  accordance  with  Article 
369d(3). 

EN 

49 

  EN 

 
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.'; 

(153)  Article 369d to 369g are replaced by the following: 

'Article 369d 

1. 
A taxable person not established in the Member State of taxation making use 
of  this  special  scheme  shall,  for  the  taxable  transactions  carried  out  under  this 
scheme, be identified for VAT purposes in the Member State of identification only. 
For  that  purpose  the  Member  State  shall  use  the  individual  VAT  identification 
number already allocated to the taxable person in respect of his obligations under the 
internal system. 

On the basis of the information used for that identification, Member States of 

2. 
taxation may have recourse to their own identification systems. 

The  Member  State  of  identification  shall  allocate  to  an  intermediary  an 
3. 
individual  identification  number  and  shall  notify  him  of  that  number  by  electronic 
means. 

The  Member  State  of  identification  shall  allocate  an  individual  VAT 
4. 
identification number for the application of this special scheme to the intermediary in 
respect of each taxable person for which he is appointed. 

Article 369e 

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

(a) 

(b) 

(c) 

(d) 

(e) 

if the taxable person notifies that he no longer carries out supplies of goods or 
services covered by this special scheme or if the intermediary notifies that the 
taxable  person  on  behalf  of  whom  he  acts  no  longer  carries  out  supplies  of 
goods or services covered by this special scheme; 

if  it  may  otherwise  be  assumed  that  the  taxable  activities  of  a  taxable  person 
covered by this special scheme have ceased; 

if a taxable person or his intermediary no longer meet the conditions necessary 
for use of this special scheme; 

if a taxable person or his intermediary persistently fail to comply with the rules 
relating to this special scheme; 

if the intermediary notifies the Member State of identification that he no longer 
represents this taxable person. 

Article 369f 

The taxable person making use of this special scheme or his intermediary shall 
1. 
submit by electronic means to the Member State of identification a VAT return for 
each  calendar  quarter,  whether  or  not  goods  or  services  covered  by  this  special 
scheme  have  been  supplied.  The  VAT  return  shall  be  submitted  by  the  end  of  the 
month following the end of the tax period covered by the return. 

EN 

50 

  EN 

 
2.  Where  the  Union  annual  turnover  of  a  taxable  person  making  use  of  this 
special scheme is above EUR 2 500 000, that taxable person or his intermediary shall 
submit  to  the  Member  State  of  identification  a  VAT  return  for  each  month  by 
electronic  means,  whether  or  not  goods  or  services  covered  by  this  special  scheme 
have  been  supplied.  The  VAT  return  shall  be  submitted  by  the  end  of  the  month 
following the end of the tax period covered by the return. 

3. 
For the purposes of paragraph 2 'Union annual turnover' means the total annual 
value of supplies of goods and services, exclusive of VAT, made by a taxable person 
within the territory of the Union. 

4.  When  during  a  calendar  year  the  threshold  referred  to  in  paragraph  2  is 
attained,  the  obligations  set  out  in  paragraph  2  shall  apply  from  the  subsequent 
calendar quarter. 

Article 369g 

The  VAT  return  shall  show  the  identification  number  referred  to  in 
1. 
Article 369d  and,  for  each  Member  State  of  taxation  in  which  VAT  has  become 
chargeable the following information: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

the total value of the goods and services supplied, exclusive of VAT; 

the relevant tax period; 

the applicable rates of VAT; 

the total amount per rate of the VAT that has become chargeable; 

the total amount of VAT that has become chargeable on the supplies of goods 
and services; 

the total amount of VAT that has become chargeable on supplies of goods and 
services for which the taxable person as recipient is liable to pay the tax or  on 
the  importation  of  goods  where  the  Member  State  exercises  the  option  under 
the second paragraph of Article 211; 

the VAT for which deduction is made; 

any amendments relating to previous tax periods as provided in paragraph 4 of 
this Article; 

(i) 

the net amount of the VAT to be paid or credited as appropriate. 

2.  Where, in the case of supplies 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 supplies 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 taxation. 

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 

EN 

51 

  EN 

 
establishment,  together  with  the  individual  VAT  identification  number  or  the  tax 
reference number of this establishment, broken down by Member State of taxation. 

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. That subsequent VAT return shall identify the relevant Member State of 
taxation,  the  tax  period  and  the  amount  of  VAT  for  which  any  amendments  are 
required.'; 

(154) 

the following Article 369ga is inserted: 

'Article 369ga 

In  case  a  taxable  person  carries  out  both  transactions  in  respect  of  which  VAT  is 
deductible pursuant to Articles 168, 169 and 170 and transactions in respect of which 
VAT is not deductible, the deductible proportion of VAT shall be determined by the 
Member State of identification, in accordance with Articles 174 and 175, for all the 
transactions carried out by the taxable person. 

In  case  a  taxable  person  has  several  establishments  in  the  Union  from  which  he 
carries  out  both  transactions  in  respect  of  which  VAT  is  deductible  pursuant  to 
Articles  168,  169  and  170  and  transactions  in  respect  of  which  VAT  is  not 
deductible, the deductible proportion of VAT shall be determined by each Member 
State  of  establishment,  in  accordance  with  Articles  174  and  175,  for  all  the 
transactions carried out by the taxable person from that establishment.'; 

(155)  Article 369i is replaced by the following: 

'Article 369i 

The taxable person making use of this special scheme or his intermediary shall pay 
the sum of the net amounts of VAT due in each Member State of taxation, 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.'; 

(156) 

the following Articles 369ia and 369ib are inserted: 

'Article 369ia 

1.  Where, for a given tax period, the amount of deductions exceeds the amount of 
VAT due in  a  Member State of taxation, the excess  shall be carried  forward to  the 
following period. 

The taxable person or his intermediary may request on the VAT return to the 

2. 
Member State of taxation a refund of excess VAT where either: 

(a) 

the taxable person is in a credit position in the Member State of taxation during 
two consecutive tax periods of a calendar quarter for which VAT returns were 
submitted; 

EN 

52 

  EN 

 
(b) 

the taxable person is in a credit position in the Member State of taxation during 
three  consecutive  tax  periods  of  a  month  for  which  VAT  returns  were 
submitted. 

Article 369ib 

Where a taxable person not established in the Member State of taxation is in a credit 
position in the VAT return submitted in accordance with Article 250 in the Member 
State  of  identification,  that  Member  State  shall  consider  the  amount  of  VAT  to  be 
refunded  in  accordance  with  Article  183,  as  a  payment  made  in  accordance  with 
Article 369i on the basis of a request from the taxable person.'; 

(157)  Articles 369j and 369k are replaced by the following: 

'Article 369j 

When  a  taxable  person  making  use  of  this  special  scheme  does  not  make  any 
supplies  of  goods  and  services  covered  by  this  special  scheme  for  which  VAT  has 
become  chargeable  in  a  Member  State  of  taxation  in  a  given  tax  period,  nor  in  the 
three  preceding  tax  periods  when  he  is  submitting  quarterly  returns  pursuant  to 
Article 369f(1) or in the eleven preceding tax periods when he is submitting monthly 
returns pursuant to Article 369f(2), he may not deduct VAT incurred in that Member 
State  of  taxation  in  the  VAT  return  submitted  for  that  tax  period.  Notwithstanding 
Article  1(1)  of  Directive  86/560/EEC  and  Article 2(1)  and  Article 3  of  Directive 
2008/9/EC, VAT  shall  be  refunded  to  the  taxable  person  in  question  in  accordance 
with those Directives. 

Article 369k 

1. 
The taxable person making use of this special scheme or his intermediary 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 taxation 
to verify that the VAT return is correct. 

2. 
The  records  referred  to  in  paragraph  1  must  be  made  available  electronically 
on request to the Member State of taxation and to the Member State of identification. 

Those records must be kept for a period of 10 years from 31 December of the year 
during which the transaction was carried out.'; 

(158) 

in Article 369l, the second paragraph is replaced by the following: 

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

(1) 

(2) 

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

‘intermediary’  means  a  person  established  in  the  Union  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;  

(3) 

‘Member State of identification’ means the following: 

EN 

53 

  EN 

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

State in which he chooses to register; 

(b)  where the taxable person has established his business outside the Union 
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 Union 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. 

For  the  purposes  of  points  (b)  and  (e),  where  the  taxable  person  or  the 
intermediary  has  more  than  one  fixed  establishment  in  the  Union  he  shall  be 
bound  by  the  decision  to  indicate  the  Member  State  of  establishment  for  the 
calendar year concerned and the two calendar years following. 

(4) 

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

(159) 

in Article 369m(1), points (a) and (b) are replaced by the following: 

'(a)  any  taxable  person  established  in  the  Union  carrying  out  distance  sales  of 

goods imported from third territories or third countries;  

(b) 

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

(160)  Articles 369y, 369z and 369za are replaced by the following: 

'Article 369y 

Where,  for  the  importation  of  goods,  except  products  subject  to  excise  duties,  in 
consignments  of  an  intrinsic  value  not  exceeding  EUR  150,  the  special  scheme  in 
Section 4 of Chapter 6 is not used, the Member State of importation shall permit the 
person presenting the goods to customs on behalf of the person for whom the goods 
are destined within the territory of the Union 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) 

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; 

EN 

54 

  EN 

 
(b) 

the  person  presenting  the  goods  to  customs  within  the  territory  of  the  Union 
shall  collect  the  VAT  from  the  person  for  whom  the  goods  are  destined  and 
effect the payment of such VAT. 

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

Article 369za 

Member States may provide that the standard rate of VAT applicable in the Member 
State of importation is applicable when using this special arrangement.'; 

(161) 

in Title XIII, the heading of Chapter 1 is replaced by the following: 

'Derogations applying until the adoption of definitive arrangements 
regarding supplies of services' 

(162)  Article 372 is deleted; 

(163)  Article 373 is replaced by the following: 

'Article 373 

Member  States  which,  at  1 January  1978,  applied  provisions  derogating  from 
Article 28 may continue to apply those provisions.'; 

(164)  Article 375 is replaced by the following: 

'Article 375 

Greece may continue to exempt the transactions listed in points (2), (9), (11) and (12) 
of Annex X, Part B, in accordance with the conditions applying in that Member State 
on 1 January 1987.'; 

(165) 

in Article 387, point (a) is deleted; 

(166)  Article 393 is deleted; 

(167) 

in Article 398, paragraph 4 is replaced by the following: 

'4. 
In  addition  to  the  points  forming  the  subject  of  consultation  pursuant  to  this 
Directive, the VAT Committee shall examine questions raised by its chairman, on his 
own  initiative  or  at  the  request  of  the  representative  of  a  Member  State,  which 
concern the application of Union provisions on VAT.'; 

(168)  Article 401 is replaced by the following: 

'Article 401 

Without prejudice to other provisions of Union law, this Directive shall not prevent a 
Member State from maintaining or introducing taxes on insurance contracts, taxes on 
betting  and  gambling,  excise  duties,  stamp  duties  or,  more  generally,  any  taxes, 
duties or charges which cannot be characterised as turnover taxes, provided that the 
collecting  of  those  taxes,  duties  or  charges  does  not  give  rise,  in  trade  between 
Member States, to formalities connected with the crossing of frontiers.'; 

(169)  Article 402 is replaced by the following: 

EN 

55 

  EN 

 
'Article 402 

The arrangements provided for in this Directive for the taxation of services between 
Member  States  are  transitional  and  shall  be  replaced  by  definitive  arrangements 
based on the principle of taxation of services in the Member State of destination of 
the supply; of liability for VAT of the supplier, and of a single registration scheme 
for the declaration, payment and deduction of the tax.'; 

(170)  Article 405 is replaced by the following: 

'Article 405 

For the purposes of this Chapter, the following definitions shall apply: 

(1) 

(2) 

'Union'  means  the  territory  of  the  Union  as  defined  in  point  (1)  of  Article  5 
before the accession of new Member States; 

‘new Member States’ means the territory of the Member States which acceded 
to the Union after 1 January 1995, as defined for each of those Member States 
in point (2) of Article 5; 

(3) 

'enlarged  Union’  means  the  territory  of  the  Union  as  defined  in  point  (1)  of 
Article 5 after the accession of new Member States.'; 

(171) 

in Article 406, points (a) and (b) are replaced by the following: 

'(a) 

(b) 

the goods entered the Union or one of the new Member States before the date 
of accession; 

the  goods  were  placed,  on  entry  into  the  Union  or  one  of  the  new  Member 
States, under these arrangements or situations;'; 

(172)  Article 408 is amended as follows: 

(a) 

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

'1. 
The  following  shall  be  treated  as  an  importation  of  goods  where  it  is 
shown that the goods were in free circulation in one of the new Member States 
or in the Union:' 

(b) 

in paragraph 2, the introductory words are replaced by the following: 

'2. 
In addition to the cases referred to in paragraph 1, the use after the date 
of accession within the territory of a Member State, by a taxable or non-taxable 
person,  of  goods  supplied  to  him  before  the  date  of  accession  within  the 
territory of the Union or one of the new Member States shall be treated as an 
importation of goods where the following conditions are met:', 

(c) 

in paragraph 2, point (b) is replaced by the following: 

'(b) 

the goods were not imported into one of the new Member States or into 
the Union before the date of accession.'; 

(173)  Article 410(1) is amended as follows: 

(a)  point (a) is replaced by the following: 

'(a) 

the  imported  goods  are  dispatched  or  transported  outside  the  enlarged 
Union;’, 

(b)  point (c) is replaced by the following: 

EN 

56 

  EN 

 
'(c) 

the imported goods within the meaning of Article 408(1)(a) are means of 
transport which were acquired or imported before the date of accession in 
accordance  with  the  general  conditions  of  taxation  in  force  on  the 
domestic  market  of  one  of  the  new  Member  States  or  of  one  of  the 
Member States of the Union or which have not been subject, by reason of 
their exportation, to any exemption from, or refund of, VAT.'; 

(174)  Annex X is amended as follows: 

(a) 

in Part A, points (1) and (4) are replaced by the following: 

'(1) 

the supply of services by dental technicians; 

(4) 

the supply of the services of travel agents, as referred to in Article 306, 
and  those  of  travel  agents  acting  in  the  name  and  on  behalf  of  the 
traveller, in relation to journeys outside the Union.', 

(b) 

in Part B, points (5) and (6) are replaced by the following: 

'(5) 

(6) 

the supply of services carried out by blind persons or by workshops for 
the  blind,  provided  that  those  exemptions  do  not  cause  significant 
distortion of competition; 

the supply of services to official bodies responsible for the construction, 
setting  out  and  maintenance  of  cemeteries,  graves  and  monuments 
commemorating the war dead;'; 

(c) 

(d) 

in Part B, point (8) is deleted, 

in Part B, points (11) and (12) are replaced by the following: 

'(11)  the  supply  of  services 

the  modification,  repair, 
maintenance, chartering and hiring of aircraft used by State institutions, 
including equipment incorporated or used in such aircraft; 

that  consist 

in 

(12)  the  supply  of  services 

that  consist 

in 

the  modification,  repair, 

maintenance, chartering and hiring of fighting ships;'. 

Article 2 

1. 

Member  States  shall  adopt  and  publish,  by  30  June  2022  at  the  latest,  the  laws, 
regulations  and  administrative  provisions  necessary  to  comply  with  this  Directive. 
They shall forthwith communicate to the Commission the text of those provisions. 

They shall apply those provisions from 1 July 2022. 

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. 

2. 

Member States shall communicate to the Commission the text of the main provisions 
of national law which they adopt in the field covered by this Directive. 

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

Article 3 

EN 

57 

  EN 

 
This Directive is addressed to the Member States. 

Done at Brussels, 

Article 4 

For the Council 
The President 

EN 

58 

  EN