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Article 1: From 1 January 2009, Directive 2006/112/EC is hereby amended as follows:
1.
in Article 56, paragraph 3 shall be replaced by the following:
2.
in Article 57, paragraph 2 shall be replaced by the following:
3.
in Article 59, paragraph 2 shall be replaced by the following:
4.
Article 357 shall be replaced by the following:
Article 2: From 1 January 2010, Directive 2006/112/EC is hereby amended as follows:
1.
Chapter 3 of Title V shall be replaced by the following:
2.
in Article 98(2), the second subparagraph shall be replaced by the following: ‘The reduced rates shall not apply to electronically supplied services.’;
3.
the introductory sentence of Article 170 shall be replaced by the following: ‘All taxable persons who, within the meaning of Article 1 of Directive 86/560/EEC ( *1 ) , Article 2(1) and Article 3 of Directive 2008/9/EC ( *2 ) and Article 171 of this Directive, are not established in the Member State in which they purchase goods and services or import goods subject to VAT shall be entitled to obtain a refund of that VAT insofar as the goods and services are used for the purposes of the following: ( *1 ) Thirteenth Council Directive 86/560/EEC of 17 November 1986 on the harmonisation of the laws of the Member States relating to turnover taxes — Arrangements for the refund of value added tax to taxable persons not established in Community territory ( OJ L 326, 21.11.1986, p. 40 )." ( *2 ) 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 ).’;"
4.
Article 171 shall be amended as follows:
a
paragraph 1 shall be replaced by the following:
b
paragraph 3 shall be replaced by the following:
5.
the following Article 171a shall be inserted:
6.
in Section 1 of Chapter 1 of Title XI, the following Article 192a shall be inserted:
7.
Article 196 shall be replaced by the following:
8.
in Article 214, the following points shall be added:
‘d
every taxable person who within their respective territory receives services for which he is liable to pay VAT pursuant to Article 196;
e
every taxable person, established within their respective territory, who supplies services within the territory of another Member State for which VAT is payable solely by the recipient pursuant to Article 196.’;
9.
Article 262 shall be replaced by the following:
10.
in Article 264, paragraph 1 shall be amended as follows:
a
points (a) and (b) shall be 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 has carried out the supply of goods in accordance with the conditions specified in Article 138(1) 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 acquiring the goods or receiving the services in a Member State other than that in which the recapitulative statement must be submitted and under which the goods or services were supplied to him;’;
b
point (d) shall be replaced by the following:
‘d
for each person who acquired goods or received services, the total value of the supplies of goods and the total value of the supplies of services carried out by the taxable person;’;
11.
Article 358 shall be amended as follows:
a
point (2) shall be replaced by the following:
‘2
“electronic services” and “electronically supplied services” mean the services referred to in point (k) of the first paragraph of Article 59;’;
b
point (4) shall be replaced by the following:
‘4
“Member State of consumption” means the Member State in which, pursuant to Article 58, the supply of the electronic services is deemed to take place;’;
12.
in Annex II, the heading shall be replaced by the following: ‘INDICATIVE LIST OF THE ELECTRONICALLY SUPPLIED SERVICES REFERRED TO IN ARTICLE 58 AND POINT (K) OF THE FIRST PARAGRAPH OF ARTICLE 59’.
Article 3: From 1 January 2011, Articles 53 and 54 of Directive 2006/112/EC shall be replaced by the following:
‘Article 53
The place of supply of services in respect of admission to cultural, artistic, sporting, scientific, educational, entertainment or similar events, such as fairs and exhibitions, and of ancillary services related to the admission, supplied to a taxable person, shall be the place where those events actually take place.
The place of supply of services in respect of admission to cultural, artistic, sporting, scientific, educational, entertainment or similar events, such as fairs and exhibitions, and of ancillary services related to the admission, supplied to a taxable person, shall be the place where those events actually take place.
1
The place of supply of services and ancillary services, relating to cultural, artistic, sporting, scientific, educational, entertainment or similar activities, such as fairs and exhibitions, including the supply of services of the organisers of such activities, supplied to a non-taxable person shall be the place where those activities actually take place.
2
The place of supply of the following services to a non-taxable person shall be the place where the services are physically carried out:
a
ancillary transport activities such as loading, unloading, handling and similar activities;
b
valuations of and work on movable tangible property.’.
Article 4: From 1 January 2013, Article 56(2) of Directive 2006/112/EC shall be replaced by the following:
‘2. The place of hiring, other than short-term hiring, of a means of transport to a non-taxable person shall be the place where the customer is established, has his permanent address or usually resides.
However, the place of hiring a pleasure boat to a non-taxable person, other than short-term hiring, shall be the place where the pleasure boat is actually put at the disposal of the customer, where this service is actually provided by the supplier from his place of business or a fixed establishment situated in that place.
However, the place of hiring a pleasure boat to a non-taxable person, other than short-term hiring, shall be the place where the pleasure boat is actually put at the disposal of the customer, where this service is actually provided by the supplier from his place of business or a fixed establishment situated in that place.
3
For the purposes of paragraphs 1 and 2, “short-term” shall mean the continuous possession or use of the means of transport throughout a period of not more than thirty days and, in the case of vessels, not more than 90 days.’.
Article 5: From 1 January 2015, Directive 2006/112/EC is hereby amended as follows:
1.
in Section 3 of Chapter 3 of Title V, Subsection 8 shall be replaced by the following:
2.
in Article 59, points (i), (j) and (k) of the first paragraph and the second paragraph shall be deleted;
3.
Article 59a shall be replaced by the following:
4.
Article 59b shall be deleted;
5.
in Article 204(1), the third subparagraph shall be replaced by the following: ‘However, Member States may not apply the option referred to in the second subparagraph to a taxable person not established within the Community, within the meaning of point (1) of Article 358a, who has opted for the special scheme for telecommunications, broadcasting or electronic services.’;
6.
in Title XII, the heading of Chapter 6 shall be replaced by the following:
7.
Article 357 shall be deleted;
8
Article 358 shall be replaced by the following:
9.
in Chapter 6 of Title XII, the heading of Section 2 shall be replaced by the following:
10.
in Section 2 of Chapter 6 of Title XII, the following Article shall be inserted:
11.
Articles 359 to 365 shall be replaced by the following:
12.
Article 366(1) shall be replaced by the following:
13.
Articles 367 and 368 shall be replaced by the following:
14.
Article 369(1) shall be replaced by the following:
15.
in Chapter 6 of Title XII, the following Section shall be inserted:
16.
in Annex II, the heading shall be replaced by the following: ‘INDICATIVE LIST OF THE ELECTRONICALLY SUPPLIED SERVICES REFERRED TO IN POINT (C) OF THE FIRST PARAGRAPH OF ARTICLE 58’.
Article 6: The Commission shall, by 31 December 2014, submit a report on the feasibility of applying efficiently the rule laid down in Article 5 for the supply of telecommunications services, radio and television broadcasting services and electronically supplied services to non-taxable persons and on the question whether that rule still corresponds to the general policy at that time concerning the place of supply of services.
Article 7: Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with Articles 1 to 5 of this Directive from the respective dates provided for in those provisions.
They shall forthwith inform the Commission thereof. When Member States adopt these provisions, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. The methods of making such reference shall be laid down by Member States.
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.
Article 8: This Directive shall enter into force on the day of its publication in the Official Journal of the European Union . Official Journal of the European Union
Article 9: This Directive is addressed to the Member States.
Recital 1
The realisation of the internal market, globalisation, deregulation and technology change have all combined to create enormous changes in the volume and pattern of trade in services. It is increasingly possible for a number of services to be supplied at a distance. In response, piece-meal steps have been taken to address this over the years and many defined services are in fact at present taxed on the basis of the destination principle.
Recital 2
The proper functioning of the internal market requires the amendment of Council CSVATD of 28 November 2006 on the common system of value added tax ( 3 ) as regards the place of supply of services, following the Commission's strategy of modernisation and simplification of the operation of the common VAT system.
Recital 3
For all supplies of services the place of taxation should, in principle, be the place where the actual consumption takes place. If the general rule for the place of supply of services were to be altered in this way, certain exceptions to this general rule would still be necessary for both administrative and policy reasons.
Recital 4
For supplies of services to taxable persons, the general rule with respect to the place of supply of services should be based on the place where the recipient is established, rather than where the supplier is established. For the purposes of rules determining the place of supply of services and to minimise burdens on business, taxable persons who also have non-taxable activities should be treated as taxable for all services rendered to them. Similarly, non-taxable legal persons who are identified for VAT purposes should be regarded as taxable persons. These provisions, in accordance with normal rules, should not extend to supplies of services received by a taxable person for his own personal use or that of his staff.
Recital 5
Where services are supplied to non-taxable persons, the general rule should continue to be that the place of supply of services is the place where the supplier has established his business.
Recital 6
In certain circumstances, the general rules as regards the place of supply of services for both taxable and non-taxable persons are not applicable and specified exclusions should apply instead. These exclusions should be largely based on existing criteria and reflect the principle of taxation at the place of consumption, while not imposing disproportionate administrative burdens upon certain traders.
Recital 7
Where a taxable person receives services from a person not established in the same Member State, the reverse charge mechanism should be obligatory in certain cases, meaning that the taxable person should self-assess the appropriate amount of VAT on the acquired service.
Recital 8
To simplify the obligations on businesses engaging in activities in Member States where they are not established, a scheme should be set up enabling them to have a single point of electronic contact for VAT identification and declaration. Until such a scheme is established, use should be made of the scheme introduced to facilitate compliance with fiscal obligations by taxable persons not established within the Community.
Recital 9
In order to further the correct application of this Directive every taxable person identified for VAT purposes should submit a recapitulative statement of the taxable persons and the non-taxable legal persons identified for VAT purposes to whom he has supplied taxable services which fall under the reverse charge mechanism.
Recital 10
Some of the changes made to the place of supply of services could have a considerable impact on the budget of Member States. To ensure a smooth transition these changes should be introduced over time.
Recital 11
In accordance with point 34 of the Interinstitutional Agreement on better law-making ( 4 ) , Member States are encouraged to draw up, for themselves and in the interests of the Community, their own tables illustrating, as far as possible, the correlation between this Directive and the transposition measures, and to make them public.
Recital 12
CSVATD should therefore be amended accordingly,
Footnote p0: Done at Brussels, 12 February 2008.