Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision 2013/677/EU authorising Luxembourg to introduce a special measure derogating from Article 285 of Directive 2006/112/EC on the common system of value added tax
Date: 2019-11-28
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: Luxembourg, VAT, derogation from EU law, small business, tax exemption

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   EUROPEAN COMMISSION  Brussels, 28.11.2019  COM(2019) 618 final 2019/0271 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision 2013/677/EU authorising Luxembourg to introduce a special measure derogating from Article 285 of Directive 2006/112/EC on the common system of value added tax  
 
EXPLANATORY MEMORANDUM 

Pursuant  to  Article  395(1)  of  Council  Directive  2006/112/EC  of  28  November  2006  on  the 
common system of value added tax1 (‘the VAT Directive’), the Council, acting unanimously 
on  a  proposal  from  the  Commission,  may  authorise  any  Member  State  to  apply  special 
measures  for  derogation  from  the  provisions  of  that  Directive  in  order  to  simplify  the 
procedure for collecting VAT or to prevent certain forms of tax evasion or avoidance. 

By  letter  registered  with  the  Commission  on  2  May  2019,  Luxembourg  requested  an 
authorisation  to  continue  to  exempt  from  VAT  taxable  persons  whose  annual  turnover  is 
below a certain threshold, as provided for in Article 285 of the VAT Directive, and to increase 
this threshold from EUR 30 000 to EUR 35 000.  

In accordance with Article 395(2) of the VAT Directive, the Commission informed the other 
Member States by letter  dated 21 June 2019 of the request made by  Luxembourg.  By letter 
dated  24  June  2019,  the  Commission  notified  Luxembourg  that  it  had  all  the  information  it 
considered necessary for the appraisal of the request. 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Chapter 1 of Title XII of the VAT Directive allows for the possibility for Member States to 
apply a special scheme for small enterprises, which includes the possibility to exempt taxable 
persons below a certain annual turnover. Taxable persons falling under this exemption do not 
have  to  charge  VAT  on  their  supplies  and,  consequently,  cannot  deduct  the  VAT  on  their 
inputs.  

The possibility of applying special VAT rules including exemptions or graduated tax relief to 
small  undertakings  was  first  introduced  by  Article  14  of  Council  Directive  67/228/EEC2. 
Member States which did not make use of the option provided for under that provision were 
allowed subsequently, according to Article 24(2)(b) of Directive 77/388/EEC3 now recast as 
the  first  paragraph  of  Article  285  of  the  VAT  Directive,  to  only  exempt  from  VAT  taxable 
persons  whose  annual  turnover  is  no  higher  than  EUR  5  000  or  the  equivalent  in  national 
currency.  Pursuant  to  the  second  paragraph  of  Article  285  of  the  VAT  Directive,  those 
Member States may also grant graduated tax relief to taxable persons whose annual turnover 
exceeds the ceiling fixed by them for its application.  

Until  the  end  of  2012,  Luxembourg  exempted  from  VAT  taxable  persons  whose  annual 
turnover  was  no  higher  than  EUR  10  000.  In  parallel,  Luxembourg  made  use  of  the  option 
pursuant to the second paragraph of Article 285 of the VAT Directive by granting graduated 
tax relief to  taxable persons whose  annual  turnover was between EUR 10 000 and EUR 25 
000.  

Subsequently,  Luxembourg  requested  and  obtained  a  derogation  pursuant  to  the  first 
paragraph  of  Article  285  to  apply  a  turnover  threshold  of  EUR  25  000  as  regards  the 
exemption scheme for small businesses whilst at the same time abolishing the application of 

1 
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3 

OJ L 347, 11.12.2006, p. 1. 
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. 1303/67). 
Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonization of the laws of the Member 
States relating to turnover taxes - Common system of value added tax: uniform basis of assessment (OJ 
L 145, 13.6.1977, p. 1). 

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the  graduated 
Luxembourg to apply the derogating measure mentioned above until 31 December 2016.  

tax  relief.  Council  Implementing  Decision  2013/677/EU4  authorised 

Council  Implementing  Decision  2017/319/EU5  authorised  Luxembourg  to  extend  the  expiry 
date  of  the  derogating  measure  to  31  December  2019  and,  at  the  same  time,  increase  the 
threshold from 25 000 to EUR 30 000.  

The  present  request  from  Luxembourg  to  prolong  further  the  expiry  date  of  the  derogation 
while increasing the threshold from EUR 30 000 to EUR 35 000 is based on the same grounds 
as  those  presented  in  the  previous  requests.  In  particular,  Luxembourg  maintains  that  the 
derogating  measure  reduces  the  administrative  burden  for  small  businesses  and  tax 
administration  alike.  In  this  regard,  the  derogating  measure  simplifies  the  procedure  for 
collecting tax and hence falls within the objectives of the first subparagraph of Article 395 (1) 
of the VAT Directive. 

Luxembourg stresses that the derogation requested is in line with the philosophy of the 2018 
Commission  proposal  on  new  simplification  rules  in  respect  of  VAT  for  small  businesses6, 
insofar  as  the  proposal  allows  Member  States  to  set  to  no  higher  than  EUR  85  000  (or  the 
equivalent in national currency) the annual turnover threshold required for an exemption from 
VAT. 

According to Luxembourg, the special measure pursued would only have a negligible effect 
on the overall amount of VAT revenue collected at the stage of final consumption (not more 
than 0.1%), as required by the second subparagraph of Article 395(1) of the VAT Directive.  

More specifically, it is reported that in 2017, 105 taxable persons with a turnover of between 
EUR 10 000 and EUR 30 000 made use of the exemption (against 64 in 2015 and 73 in 2016). 
For  that  year,  this  number  corresponds  to  0.14%  of  taxable  persons  registered  for  VAT. 
Luxembourg estimates the maximum loss of VAT revenue due to the exemption at EUR 271 
525.60.  This  amount  represented  0.01%  of  the  total  amount  of  VAT  receipts  for  2017. 
Luxembourg  expects  that  an  increase  of  the  threshold  to  EUR  35  000  could  affect  1106 
taxable  persons,  which  would  account  for  1.5%  of  taxable  persons  registered  for  VAT  in 
2017. In the hypothesis that none of those taxable persons opted for normal VAT treatment, 
the revenue loss resulting from an increase of the exemption threshold from EUR 30 000 to 
EUR 35 000 should not exceed 0.1% of the total VAT revenue. 

Based on the information provided by Luxembourg, it appears that the aim of the request to 
extend the derogating measure is to release small businesses from many of the VAT obligations 
under the normal VAT arrangements as well as to reduce the burden of the tax administration 
in  terms  of  tax  collection  and  the  auditing  of  small  businesses.  This  could  allow  the  tax 
administration  to  focus  its  control  activities  towards  larger  taxable  persons.  The  derogating 
measure  is  thus  in  accordance  with  the  first  subparagraph  of  Article  395(1)  of  the  VAT 
Directive,  which  allows  Member  States  to  introduce  special  measures  derogating  from  its 

4 

5 

6 

Council  Implementing  Decision  2013/677/EU  of  15  November  2013  authorising  Luxembourg  to 
introduce  a  special  measure  derogating  from  Article  285  of  Directive  2006/112/EC  on  the  common 
system of value added tax (OJ L 316, 27.11.2013, p. 33). 
Council Implementing Decision 2017/319/EU of 21 February 2017 amending Implementing  Decision 
2013/677/EU  authorising  Luxembourg  to  introduce  a  special  measure  derogating  from  Article  285  of 
Directive 2006/112/EC on the common system of value added tax (OJ L 47, 24.2.2017, p. 7). 
Proposal  for  a  Council  Directive  amending  Directive  2006/112/EC  on  the  common  system  of  value 
added tax as regards the special scheme for small enterprises, COM(2018) 21 final. 

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provisions in order to simplify the procedure for collecting VAT. In this context, it is noted 
that the measure is and will remain optional for taxable persons.  

As  demonstrated  by  Luxembourg,  the  derogating  measure  is  not  expected  to  affect 
significantly  the  overall  amount  of  its  tax  revenue  collected  at  the  stage  of  the  final 
consumption.  Likewise,  it  is  not  expected  to  adversely  affect  the  Union’s  own  resources 
accruing  from  VAT.  Therefore,  the  derogating  measure  is  in  accordance  with  the  second 
subparagraph of Article 395(1) of the VAT Directive. 

In  the  light  of  the  above,  and  given  that  the  EU  legal  framework  and  the  factual  situation 
remain  unchanged,  the  requested  extension  of  the  expiry  date  of  the  derogating  measure 
appears to be justified. Hence, it is proposed that the request be granted.  

Luxembourg’s  request  does  not  indicate  a  deadline  for  the  derogation  sought.  However, 
derogations from the VAT Directive should normally be limited in time so as to allow for an 
assessment  of  their  effectiveness  and  appropriateness.  Moreover,  as  mentioned  earlier,  the 
provisions  of  Articles  281  to  294  of  the  VAT  Directive  on  the  special  scheme  for  small 
enterprises are currently subject to review. The 2018 proposal on simpler VAT rules for small 
enterprises  requires  that  Member  States  adopt  and  publish  the  laws,  regulations  and 
administrative provisions, which are necessary to comply with the new rules, by 30 June 2022 
at the latest.  

It is therefore proposed to extend the expiry date of the derogation until 31 December 2022. In 
the event that a directive is adopted amending Articles 281 to 294 of the VAT Directive on a 
special scheme for small enterprises  and, as a consequence, the relevant  national  provisions 
take  effect  from  1  July  2022,  namely  before  the  expiration  of  the  period  of  validity  of  the 
derogating measure on 31 December 2022, this Decision shall cease to apply.  

• 

Consistency with existing policy provisions in the policy area 

Similar derogations, exempting from VAT taxable persons whose annual turnover is below a 
certain threshold, as provided for in Article 285 of the VAT Directive, have been granted to 
other Member States. Malta7 has been granted a threshold of EUR 20 000; the Netherlands8 a 
threshold  of  EUR  25  000;  Poland9,  Estonia10  and  Latvia11  have  been  granted  a  threshold of 

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Council  Implementing  Decision  (EU)  2018/279  of  20  February  2018  authorising  Malta  to  apply  a 
special measure derogating from Article 287 of Directive 2006/112/EC on the common system of value 
added tax (OJ L 54, 24.2.2018, p. 14). 
Council  Implementing  Decision  (EU)  2018/1904  of  4  December  2018  authorising  the  Netherlands  to 
introduce  a  special  measure  derogating  from  Article  285  of  Directive  2006/112/EC  on  the  common 
system of value added tax (OJ L 310, 6.12.2018, p. 25). 
Council Implementing Decision (EU) 2018/1919 of 4 December 2018 amending Decision 2009/790/EC 
authorising  the  Republic  of  Poland  to  apply  a  measure  derogating  from  Article  287  of  Directive 
2006/112/EC on the common system of value added tax (OJ L 311, 7.12.2018, p. 32). 
Council Implementing Decision (EU) 2017/563 of 21 March 2017 authorising the Republic of Estonia 
to  apply  a  special  measure  derogating  from  Article  287  of  Directive  2006/112/EC  on  the  common 
system of value added tax (OJ L 80, 25.3.2017, p. 33). 
Council  Implementing  Decision  (EU)  2017/2408  of  18  December  2017  authorising  the  Republic  of 
Latvia  to  apply  a  special  measure  derogating  from  Article  287  of  Directive  2006/112/EC  on  the 
common system of value added tax (OJ L 342, 21.12.2017, p. 8). 

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EUR 40 000; Croatia12 and Lithuania13 a threshold of EUR 45 000; Slovenia14 a threshold of 
50 000; Italy15 a threshold of EUR 65 000; and Romania16 a threshold of EUR 88 500. 

The  measure  is  also  consistent  with  the  2018  proposal  on  simpler  VAT  rules  for  small  and 
medium-sized  enterprises,  which  is  based  on  the  VAT  action  plan17  and  aims  to  create  a 
modern,  simplified  scheme  for  those  businesses.  In  particular,  it  seeks  to  reduce  VAT 
compliance costs and distortions of competition both domestically and at EU level, reduce the 
negative  impact  of  the  threshold  effect,  and  facilitate  business  compliance  as  well  as 
monitoring by tax administrations. 

Derogations from the VAT Directive should always be limited in time so that their effects can 
be assessed. In the light  of the requirements of the 2018 proposal on simpler VAT rules for 
small enterprises, it is proposed to extend the expiry date of the derogation until 31 December 
2022 or the date from which Member States are to apply any national provisions that they are 
required to adopt in the event that a directive is adopted amending Articles 281 to 294 of the 
VAT Directive on a special scheme for small enterprises. 

The proposed measure is therefore consistent with the provisions of the VAT Directive. 

Consistency with other Union policies  

The measure is in line with the 2017 Commission Work Programme18, which pointed out that 
the administrative burden of VAT compliance for small businesses is high and that technical 
innovations pose new challenges for effective tax collection, and stressed the need to simplify 
VAT for smaller companies.  

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Council  Implementing  Decision  (EU)  2017/1768  of  25  September  2017  authorising  the  Republic  of 
Croatia  to  introduce  a  special  measure  derogating  from  Article  287  of  Directive  2006/112/EC  on  the 
common system of value added tax (OJ L 250, 28.9.2017, p. 71). 
Council Implementing Decision (EU) 2017/1853 of 10 October 2017 amending Implementing Decision 
2011/335/EU authorising the Republic of Lithuania to apply a measure derogating from Article 287 of 
Directive 2006/112/EC on the common system of value added tax (OJ L 265, 14.10.2017, p. 15). 
Council  Implementing  Decision  (EU)  2018/1700  of  6  November  2018  amending  Implementing 
Decision  2013/54/EU  authorising  the  Republic  of  Slovenia  to  introduce  a  special  measure  derogating 
from  Article  287  of  Directive  2006/112/EC  on  the  common  system  of  value  added  tax  (OJ  L  285, 
13.11.2018, p. 78). 
Council  Implementing  Decision  (EU)  2016/1988  of  8  November  2016  amending  Implementing 
Decision  2013/678/EU  authorising  the  Italian  Republic  to  continue  to  apply  a  special  measure 
derogating from Article 285 of Directive 2006/112/EC on the common system of value added tax (OJ L 
306, 15.11.2016, p. 11). 
Council Implementing Decision (EU) 2017/1855 of 10 October 2017 authorising  Romania to apply a 
special measure derogating from Article 287 of Directive 2006/112/EC on the common system of value 
added tax (OJ L 265, 14.10.2017, p. 19). 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council  and  the  European 
Economic and Social Committee on an action plan on VAT – Towards a single EU VAT area – Time to 
decide COM(2016)148 final. 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic and Social  Committee and the  Committee of the  Regions  -  Commission Work Programme 
2017 (COM(2016) 710 final).  

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Likewise, it is consistent with the 2015 single market strategy19, where the Commission set out 
to  help  small  and  medium-sized  businesses  grow,  inter  alia  by  reducing  the  administrative 
burdens that prevent them from taking full advantage of the single market.  

Finally, the measure is in line with EU policies on small and medium-sized enterprises, as set 
out in the 2016 Start-Up Communication20, and the 2008 Communication "Think small first" 
– a "Small Business Act" for Europe"21
 which called on the Member States to take account of 
the special features of SMEs when designing legislation and simplify the existing regulatory 
environment. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article 395 of the VAT Directive is the only possible legal basis. 

• 

Subsidiarity (for non-exclusive competence)  

Considering the provision of the VAT Directive on which it is based, the proposal falls under 
the exclusive competence of the European Union. Hence, the subsidiarity principle does not 
apply. 

• 

Proportionality 

The Decision concerns an authorisation granted to a Member State upon its own request and 
does not constitute any obligation. 

Given  the  limited  scope  of  the  derogation,  the  special  measure  is  proportionate  to  the  aim 
pursued, i.e. to simplify tax collection for small taxable persons and for the tax administration. 

• 

Choice of the instrument 

The instrument proposed is a Council Implementing Decision. 

Under Article 395 of the VAT Directive, a derogation from the common VAT rules is only 
possible upon authorisation by the Council, which is acting unanimously on a proposal from 
the  Commission.  A  Council  Implementing  Decision  is  the  most  suitable  instrument  since  it 
can be addressed to an individual Member State. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

No stakeholder consultation has been conducted. The present proposal is based on a request 
made by Luxembourg and concerns only this particular Member State. 

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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).   
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions  —  Europe’s  Next  Leaders:  The 
Start-Up and Scale-Up Initiative (COM(2016) 733 final). 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  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).  

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• 

Collection and use of expertise 

There was no need for external expertise.  

• 

Impact assessment 

The  proposal  for  a  Council  Implementing  Decision  aims  at  extending  a  simplification  measure 
which removes many of the VAT obligations for businesses operating with an annual turnover no 
higher  than  EUR  35  000.  This  could  have  a  potential  positive  impact  on  the  reduction  of 
administrative  burden  for  1106  taxable  persons  (which  would  represent  1.5%  of  the  taxable 
persons registered for VAT in 2017) and, subsequently, on the tax administration. The budgetary 
impact  in  terms  of  VAT  revenue  is  estimated  by  Luxembourg  at  not  more  than  0.1%  of  VAT 
revenue collected. 

• 

Fundamental rights 

The proposal does not have any consequences for the protection of fundamental rights. 

4. 

BUDGETARY IMPLICATIONS 

The  proposal  will  not  have  a  negative  impact  on  the  EU  budget  because  Luxembourg  will 
carry  out  a  compensation  calculation  in  accordance  with  Article  6  of  Council  Regulation 
(EEC EURATOM) 1553/89.  

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2019/0271 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

amending Implementing Decision 2013/677/EU authorising Luxembourg to introduce a 
special measure derogating from Article 285 of Directive 2006/112/EC on the common 
system of value added tax 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having  regard  to  Council  Directive  2006/112/EC  of  28  November  2006  on  the  common 
system of value added tax22, and in particular the first subparagraph of Article 395(1) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

Under Article 285 of Directive 2006/112/EC, Member States which have not exercised 
the  option  under  Article  14  of  Second  Council  Directive  67/228/EEC23  are  able  to 
exempt  from  value  added  tax  (‘VAT’)  taxable  persons  whose  annual  turnover  is  no 
higher than EUR 5 000 or the equivalent in national currency. 
By  Council  Implementing  Decision  2013/677/EU24,  Luxembourg  was  authorised  to 
apply a special  measure  derogating from  Article  285 of Directive 2006/112/EC  (‘the 
derogating  measure’)  to  exempt  from  VAT  taxable  persons  whose  annual  turnover 
was  no  higher  than  EUR  25  000.  The  derogating  measure  was  authorised  until  31 
December 2016. 

Implementing  Decision  2013/677/EU  was  amended  by  Council  Implementing 
Decision  (EU)  2017/31925  to  authorise  Luxembourg  to  exempt  from  VAT  taxable 
persons whose annual turnover was no higher than EUR 30 000. That authorisation is 
applicable  until  31  December  2019,  or  until  the  entry  into  force  of  a  directive 
amending Articles 281 to 294 of Directive 2006/112/EC on a special scheme for small 
enterprises, whichever is the earlier. A proposal26 for such a directive was presented in 
2018, but has not yet been adopted. 

(4) 

By  letter  registered  with  the  Commission  on  2  May  2019,  Luxembourg  requested 
authorisation  to  continue  to  apply  the  derogating  measure  after  31  December  2019 
and, at the same time, to increase the threshold from EUR 30 000 to EUR 35 000. 

22 
23 

24 

25 

26 

OJ L 347, 11.12.2006, p. 1. 
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. 1303/67). 
Council  Implementing  Decision  2013/677/EU  of  15  November  2013  authorising  Luxembourg  to 
introduce  a  special  measure  derogating  from  Article  285  of  Directive  2006/112/EC  on  the  common 
system of value added tax (OJ L 316, 27.11.2013, p. 33). 
Council Implementing Decision (EU) 2017/319 of 21 February 2017 amending Implementing Decision 
2013/677/EU  authorising  Luxembourg  to  introduce  a  special  measure  derogating  from  Article  285  of 
Directive 2006/112/EC on the common system of value added tax (OJ L 47, 24.2.2017, p. 7). 
COM(2018)21 final of 18 January 2018. 

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(5) 

(6) 

(7) 

(8) 

(9) 

By  letter  dated  21  June  2019,  the  Commission  informed  the  other  Member  States, 
pursuant  to  the  second  subparagraph  of  Article  395(2)  of  Directive  2006/112/EC,  of 
the request that Luxembourg had made. By letter dated 24 June 2019, the Commission 
notified Luxembourg that it had all the information necessary to consider the request.  

From  the  information  provided  by  Luxembourg,  it  appears  that  the  reasons  for  the 
derogating  measure  remain  largely  unchanged.  The  derogating  measure  reduces  the 
administrative  burden  and  compliance  costs  both  for  small  enterprises  and  for  tax 
authorities  and  it  therefore  helps  to  simplify  the  procedure  for  collecting  VAT. 
Luxembourg  estimates  that  an  increase  in  the  exemption  threshold  to  EUR  35  000 
could  affect  1106  taxable  persons,  which  corresponds  to  1.5%  of  taxable  persons 
registered for VAT in Luxembourg in 2017. Such an increase in the threshold would 
therefore  further  reduce  the  administrative  burden  and  compliance  costs  and  help  to 
simplify further the procedure for collecting tax. 

The  derogating  measure  is  and  will  remain  optional  for  taxable  persons.  Taxable 
persons will still be able to opt for the regular VAT arrangements in accordance with 
Article 290 of Directive 2006/112/EC.  

According to information provided by Luxembourg, the derogating measure with the 
increased threshold will only have a negligible effect on the overall amount of the tax 
revenue of Luxembourg collected at the stage of final consumption.   

The  derogating  measure  with  the  increased  threshold  will  not  adversely  affect  the 
Union’s  own  resources  accruing  from  VAT  because  Luxembourg  will  carry  out  a 
compensation  calculation  in  accordance  with  Article  6  of  Council  Regulation  (EEC, 
Euratom) No 1553/8927. 

(10)  Given  the  potential  positive  impact  of  the  derogating  measure  in  reducing  the 
administrative  burden  and  compliance  costs  for  small  businesses  and  for  the  tax 
authorities,  and  the  lack  of  any  major  impact  on  the  total  VAT  revenue  generated, 
Luxembourg should be  authorised to  continue to apply the derogating measure for a 
further period and to increase the threshold to EUR 35 000 for that period.  

(11)  Extension  of  the  authorisation  to  apply  the  derogating  measure  should  be  limited  in 
time. The time limit should be sufficient to allow the effectiveness and appropriateness 
of the threshold to be evaluated. It is therefore appropriate to authorise Luxembourg to 
continue  to  apply  the  derogating  measure  until  31  December  2022.  However,  if  the 
proposal for a directive referred to in recital (3) is adopted and the date from which the 
national provisions necessary to comply with that directive are to apply is earlier than 
31  December  2022,  the  authorisation  should  cease  to  apply  when  those  national 
provisions become applicable.   

(12) 

Implementing Decision 2013/677/EU should therefore be amended accordingly, 

HAS ADOPTED THIS DECISION:  

Articles 1 and 2 of Implementing Decision 2013/677/EU are replaced by the following: 

Article 1 

27 

Council  Regulation  (EEC,  Euratom)  No  1553/89  of  29  May  1989  on  the  definitive  uniform 
arrangements for the collection of own resources accruing from value added tax (OJ L 155, 7.6.1989, p. 
9). 

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By way of derogation from Article 285 of Directive 2006/112/EC, Luxembourg is authorised 
to exempt from VAT taxable persons whose annual turnover is no higher than EUR 35 000. 

‘Article 1 

This Decision shall apply until the earlier of the following two dates: 

(a) 

31 December 2022; 

Article 2 

(b) 

the date from which Member States are to apply any national provisions that they are 
required  to  adopt  in  the  event  that  a  directive  is  adopted  amending  Articles  281  to 
294 of Directive 2006/112/EC on a special scheme for small enterprises.’. 

This Decision shall apply from 1 January 2020. 

Article 2 

This Decision is addressed to the Grand Duchy of Luxembourg. 

Done at Brussels, 

Article 3 

For the Council 
The President 

EN 

9 

  EN