Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2017/1855 authorising Romania to apply a special measure derogating from Article 287 of Directive 2006/112/EC on the common system of value added tax
Date: 2020-07-07
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: Romania, VAT, derogation from EU law, small business, tax exemption

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   EUROPEAN COMMISSION  Brussels, 7.7.2020  COM(2020) 292 final 2020/0136 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2017/1855 authorising Romania to apply a special measure derogating from Article 287 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  14  January  2020,  Romania  requested  an 
authorisation  to  continue,  after  31  December  2020,  to  exempt  from  VAT  taxable  persons 
whose annual turnover is no higher than the equivalent in national currency of EUR 88 500.  

In accordance with Article 395(2) of the VAT Directive, the Commission informed the other 
Member States by letter dated 18 February 2020 of the request made by Romania. By letter 
dated 19 February 2020, the Commission notified Romania 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  from 
VAT  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 
VAT on their inputs.  

Under  Article  287(18)  of  the  VAT  Directive,  Romania  may  exempt  from  VAT  taxable 
persons whose annual turnover is no higher than the equivalent in national currency of EUR 
35 000. 

By  Council  Implementing  Decision  2012/181/EU2  Romania  was  authorised  until  31 
December 2014 to exempt from VAT taxable persons with annual turnover not exceeding the 
equivalent  in  national  currency  of  EUR  65  000  at  the  conversion  rate  on  the  date  of  its 
accession to  the European Union. Council  Implementing Decision 2014/931/EU3 authorised 
Romania to continue to  apply until 31 December 2017 the special measure derogating from 
Article  287(18)  of  the  VAT  Directive.  Romania  was  subsequently  authorised  by  Council 
Implementing  Decision  (EU)  2017/18554  to  increase  the  exemption  threshold  to  the 
equivalent in national currency of EUR 88 500 and to extend the expiry date of the derogating 
measure  until  31  December  2020  or  until  the  entry  into  force  of  a  directive  amending  the 
provisions of Articles 281 to 294 of the VAT Directive, whichever date was the earlier. The 
measure  has  an  optional  character,  allowing  small  businesses  to  opt  for  the  normal  VAT 
arrangements. 

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OJ L 347, 11.12.2006, p. 1. 
Council  Implementing  Decision  2012/181/EU  of  26  March  2012  authorising  Romania  to  introduce  a 
special measure derogating from Article 287 of Directive 2006/112/EC on the common system of value 
added tax (OJ L 92, 30.3.2012, p. 26). 
Council  Implementing  Decision  2014/931/EU  of  16  December  2014  extending  the  application  of 
Implementing  Decision  2012/181/EU  authorising  Romania  to  introduce  a  special  measure  derogating 
from  Article  287  of  Directive  2006/112/EC  on  the  common  system  of  value  added  tax  (OJ  L  365, 
19.12.2014, p. 145). 
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). 

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The  present  request  from  Romania  to  prolong  further  the  expiry  date  of  the  derogating 
measure,  without  increasing  the  current  threshold  of  EUR  88  500,  is  based  on  the  same 
grounds as those presented in the previous requests.  

Romania  maintains  that  the  prolongation  of  the  derogating  measure  as  well  as  the  current 
exemption  ceiling  are  justified,  taking  into  account  the  structure  of  the  national  economy. 
Small  and  medium-sized  enterprises  bear  disproportionate  VAT  compliance  costs  in 
comparison  with  large  enterprises.  The  exemption  from  VAT  significantly  reduces  small 
businesses’  VAT  obligations,  while  relieving  the  tax  authorities  of  the  burden  of  having  to 
monitor the collection of a small volume of revenue from small and medium-sized enterprises 
with an annual turnover of less than EUR 88 500.  

In this regard, Romania estimates that in 2019 the amount of VAT paid to the state budget by 
taxable persons registered for VAT purposes with an annual turnover of less than EUR 88 500 
represented  2.52%  of  total  VAT  revenue  and  1.09%  of  total  State  budget  revenue.  For  the 
same year, taxable persons with an annual turnover above EUR 88 500 (representing 42.85% 
of the total number of taxable persons registered for VAT purposes) made a contribution of 
97.48% to total VAT revenue. Thus, it appears that the impact of the derogating measure on 
tax revenue collected at the final consumption stage will be negligible, whereas its impact will 
be  significant  in  terms  of  simplifying  both  the  tax  obligations  of  the  taxable  persons 
concerned as well as the procedure for collecting VAT for the tax administration.  

Based  on  the  information  provided  by  Romania,  it  is  clear  that  the  aim  of  the  request  to 
prolong  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,  thus  making  it  more  efficient,  while  saving 
administrative resources and reducing tax evasion. The derogating measure is thus in line with 
the objectives of the first subparagraph of Article 395(1) of the VAT Directive, which allows 
Member  States  to  introduce  special  measures  derogating  from  its  provisions  in  order  to 
simplify  the  procedure  for  collecting  VAT  or  to  prevent  tax  evasion.  In  this  context,  it  is 
reiterated that the measure is and will remain optional for taxable persons, which are allowed 
to opt for the normal VAT arrangements.  

As  demonstrated  by  Romania,  the  derogating  measure  is  not  expected  to  either  affect 
significantly  the  overall  amount  of  its  tax  revenue  collected  at  the  stage  of  the  final 
consumption. Therefore, the derogating measure appears to be 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 Romania’s request be granted.  

Derogations are normally granted for a limited period to allow an assessment of whether the 
derogating measure remains appropriate and effective. Moreover, the Council adopted on 18 
February  2020  a  directive  amending  the  provisions  of  Articles  281  to  294  of  the  VAT 
Directive  on  the  special  scheme  for  small  enterprises5.  The  new  directive  on  simpler  VAT 

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Council  Directive  (EU)  2020/285  of  18  February  2020  amending  Directive  2006/112/EC  on  the 
common system of value added tax as regards the special scheme for small enterprises and Regulation 
(EU)  No  904/2010  as  regards  the  administrative  cooperation  and  exchange  of  information  for  the 
purpose  of  monitoring  the  correct  application  of  the  special  scheme  for  small  enterprises  (OJ  L  62, 
2.3.2020, p. 13). 

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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  31 
December 2024 at the latest. Member States will have to apply those national provisions from 
1 January 2025.  

It is therefore appropriate to authorise Romania to continue to apply the derogating measure 
until 31 December 2024.  

• 

Consistency with existing policy provisions in the policy area 

The  derogating  measure  is  in  line  with  the  philosophy  of  the  abovementioned  directive 
amending Articles 281 to 294 of the VAT Directive on a special scheme for small enterprises, 
adopted on 18 February 2020, which resulted from the VAT action plan6, 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. 

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; Luxembourg a threshold of EUR 35 0009; Poland10, Estonia11 and 
Latvia12 have been granted a threshold of EUR 40 000; Croatia13 and Lithuania14 a threshold 
of EUR 45 000; Hungary a threshold of EUR 48 00015; Slovenia16 a threshold of EUR 50 000; 
and Italy17 a threshold of EUR 65 000. 

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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. 
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)  2019/2210  of  19  December  2019  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  332,  23.12.2019,  p. 
155). 
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). 
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) 2018/1490 of 2 October 2018 authorising Hungary to introduce a 
special measure derogating from Article 287 of Directive 2006/112/EC on the common system of value 
added tax (OJ L 252, 8.10.2018, p. 38). 

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As already mentioned, derogations from the VAT Directive should always be limited in time 
so  that  their  effects  can  be  assessed.  The  extension  of  the  expiry  date  of  the  derogating 
measure  until  31  December  2024  is  aligned  with  the  requirements  of  the  new  directive  on 
simpler  VAT  rules  for  small  and  medium-sized  enterprises.  That  directive  provides  for  1 
January 2025 as the date on which Member States will have to apply the national provisions, 
which they are required to adopt to comply with it.  

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

Consistency with other Union policies  

The  Commission  has  been  consistently  stressing  the  need  for  simpler  rules  for  small 
enterprises  in  its  annual  work  programmes.  In  this  regard,  the  2020  Commission  Work 
Programme18  refers  to  “a  dedicated  SME  Strategy  that  will  make  it  easier  for  small  and 
medium-sized businesses to operate, scale up and expand”. The derogating measure is in line 
with such objectives, as far as fiscal rules are concerned. It is notably consistent with the 2017 
Commission  Work  Programme19,  which  referred  specifically  to  VAT,  pointing  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.  

Likewise,  the  measure  is  consistent  with  the  2015  single  market  strategy20,  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. 
It  also  follows  the  philosophy  of  the  2013  Commission  Communication  ‘Entrepreneurship 
2020  Action  Plan:  Reigniting  the  entrepreneurial  spirit  in  Europe’21,  which  underlined  the 
need to simplify tax legislation for small businesses. 

Finally, the measure is in line with EU policies on small and medium-sized enterprises, as set 
out in the 2016 Start-Up Communication22, and the 2008 Communication ‘"Think small first" 

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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)  2020/647  of  11  May  2020  authorising  the  Italian  Republic  to 
apply a special measure derogating from Article 285 of Directive 2006/112/EC on the common system 
of value added tax (OJ L 151, 14.5.2020, p. 7).  
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 
2020 - A Union that strives for more (COM(2020) 37 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).  
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  -  Entrepreneurship  2020  Action 
Plan: Reigniting the entrepreneurial spirit in Europe (COM(2012) 795 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). 

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– a "Small Business Act" for Europe’23 which called on the Member States to take account of 
the special features of SMEs when designing legislation and simplify the existing regulatory 
environment. 

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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, 
save administrative resources and reduce tax evasion. 

• 

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 Romania and concerns only this particular Member State. 

• 

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 88 500 or the equivalent in national currency. This could have a 
potential  positive  impact  on  the  reduction  of  administrative  burden  for  241  417  small 

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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  ‘Think  Small  First’  A  ‘Small 
Business Act’ for Europe (COM(2008) 394 final).  

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businesses  representing  57.15%  of  the  total  number  of  taxable  persons  registered  for  VAT 
purposes and 17.79% of the total number of active taxable persons in Romania for 2019 (until 
31  October).  Likewise,  the  derogating  measure  could  significantly  reduce  the  burden  of  the 
tax  administration  in  terms  of  tax  collection,  thus  making  it  more  efficient,  while  saving 
administrative resources and reducing tax evasion. 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.  The  budgetary 
impact in terms of VAT revenue for 2019 is estimated by Romania as negligible. 

• 

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 Romania will carry 
out  a  compensation  calculation  in  accordance  with  Article  6  of  Council  Regulation  (EEC 
EURATOM) 1553/89.  

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2020/0136 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

amending Implementing Decision (EU) 2017/1855 authorising Romania to apply a 
special measure derogating from Article 287 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 tax1, and in particular Article 395(1), the first subparagraph, thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

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Pursuant to point (18) of Article 287 of Directive 2006/112/EC, Romania may exempt 
from  value  added  tax  (‘VAT’)  taxable  persons  whose  annual  turnover  is  no  higher 
than the equivalent in national currency of EUR 35 000 at the conversion rate on the 
day of its accession. 
By  Council  Implementing  Decision  2012/181/EU2,  Romania  was  authorised  to 
introduce  a  special  measure  derogating  from  Article  287  of  Directive  2006/112/EC 
(‘the  derogating  measure’)  to  exempt  from  VAT  taxable  persons  whose  annual 
turnover  was  no  higher  than  EUR  65  000.  The  derogating  measure  expired  on  31 
December 2014. 
By  Council  Implementing  Decision  2014/931/EU3,  Romania  was  authorised  to 
continue to apply the derogating measure until 31 December 2017.  
By  Council  Implementing  Decision  (EU)  2017/18554  Romania  was  authorised  to 
apply  a  special  measure  derogating  from  Article  287  of  Directive  2006/112/EC  to 
exempt  from  VAT  taxable  persons  whose  annual  turnover  is  no  higher  than  the 
equivalent in national currency of EUR 88 500 at the conversion rate on the day of its 
accession.  The  derogating  measure  was  authorised  until  31  December  2020,  or  until 
the entry into force of a directive amending the  provisions of Articles 281 to  294 of 
Directive 2006/112/EC, whichever date is the earlier.  

OJ L 347, 11.12.2006, p. 1. 
Council  Implementing  Decision  2012/181/EU  of  26  March  2012  authorising  Romania  to  introduce  a 
special measure derogating from Article 287 of Directive 2006/112/EC on the common system of value 
added tax (OJ L 92, 30.3.2012, p. 26).  
Council  Implementing  Decision  2014/931/EU  of  16  December  2014  extending  the  application  of 
Implementing  Decision  2012/181/EU  authorising  Romania  to  introduce  a  special  measure  derogating 
from  Article  287  of  Directive  2006/112/EC  on  the  common  system  of  value  added  tax  (OJ  L  365, 
19.12.2014, p. 145). 
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). 

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(5) 

(6) 

(7) 

(8) 

On  18  February  2020,  the  Council  adopted  Directive  (EU)  2020/2855  amending 
Articles 281 to 294 of Directive 2006/112/EC as regards the special scheme for small 
enterprises and laying down new rules for small enterprises, including the maximum 
threshold of the Member State’s annual turnover of EUR 85 000 or the equivalent in 
national currency.  

By  letter  registered  with  the  Commission  on  14  January  2020,  Romania  requested 
authorisation to continue to apply the derogating measure after 31 December 2020. 

By letter dated 18 February 2020, the Commission informed the other Member States, 
pursuant to Article 395(2), the second subparagraph, of Directive 2006/112/EC, of the 
request made by Romania. By letter dated 19 February 2020, the Commission notified 
Romania that it had all the information necessary to consider the request.  

From  the  information  provided  by  Romania,  it  appears  that  the  reasons  for  the 
derogating  measure  remain  largely  unchanged.  The  derogating  measure  is  a 
simplification  measure  that  reduces  VAT-related  obligations  for  a  number  of  small 
enterprises.  It  also  reduces  the  burden  on  tax  authorities  by  removing  the  need  to 
monitor the collection of a small volume of revenues from  a larger number of small 
enterprises.  Maintaining  the  current  exemption  threshold  appears  to  be  an  effective 
way of saving administrative resources and reducing tax evasion. 

(9) 

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

(10)  According  to  information  provided  by  Romania,  the  derogating  measure  will  only 
have a negligible effect on the overall amount of the tax revenue of Romania collected 
at the stage of final consumption.   

(11)  The derogating measure will not adversely affect the Union’s own resources accruing 
from VAT because Romania will carry out a compensation calculation in accordance 
with Article 6 of Council Regulation (EEC, Euratom) No 1553/896. 

(12)  Given  the  potential  positive  impact  of  the  derogating  measure  in  reducing  the 
administrative burden for small businesses and for the tax authorities, and the lack of 
any major impact on the total VAT revenue generated, Romania should be authorised 
to apply the derogating measure for a further period.  

(13)  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. Moreover, according to Directive (EU) 2020/285, Member 
States  are  to  adopt  and  publish,  by  31  December  2024  the  laws,  regulations  and 
administrative provisions to comply with Article 1 of that Directive, and apply those 
provisions  from  1  January  2025.  It  is  therefore  appropriate  to  authorise  Romania  to 
apply the derogating measure until 31 December 2024.  

(14) 

Implementing Decision (EU) 2017/1855 should therefore be amended accordingly, 

5 

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Council  Directive  (EU)  2020/285  of  18  February  2020  amending  Directive  2006/112/EC  on  the 
common system of value added tax as regards the special scheme for small enterprises and Regulation 
(EU)  No  904/2010  as  regards  the  administrative  cooperation  and  exchange  of  information  for  the 
purpose  of  monitoring  the  correct  application  of  the  special  scheme  for  small  enterprises  (OJ  L  62, 
2.3.2020, p. 13). 
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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HAS ADOPTED THIS DECISION:  

 Article 1 

In Article 2 of Implementing Decision (EU) 2017/1855, the second paragraph is replaced by 
the following: 

‘This Decision shall apply from 1 January 2018 until 31 December 2024.’ 

This Decision is addressed to Romania. 

Article 2 

Done at Brussels, 

For the Council 
The President 

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