Address https://gelex.eu/eli/EU/directive/2016/856@2016-05-25/en

Contents

1. Preamble
2. 1. Article 1
3. Article 1
   1. Article 97
4. 1. Article 2
   2. Article 3
   3. Article 4

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 Parliament,

Having regard to the opinion of the European Economic and Social Committee,

Acting in accordance with a special legislative procedure,

Whereas:

(1) Article 97 of Council Directive 2006/112/EC provides that from 1 January 2011 until 31 December 2015 the standard rate of value added tax (VAT) may not be less than 15 %.

(2) The standard VAT rate currently in force in the Member States, combined with the mechanism of the transitional system has ensured that the VAT system has functioned to an acceptable degree. With new rules on the place of supply of services which favour taxation at the place of consumption, the possibilities for exploiting differences in VAT rates through relocation have been limited further and potential distortions of competition have been reduced.

(3) To prevent excessive divergence in the standard VAT rates applied by Member States from leading to structural imbalances in the Union and distortions of competition in some sectors of activity, it is common practice in the field of indirect taxes to set minimum rates. It is still prudent to do so for VAT.

(4) In view of the ongoing discussion on the features of the definitive VAT regime for intra-Union trade, it would be premature to set a permanent standard VAT rate or to consider changing the minimum VAT rate.

(5) It is therefore appropriate to maintain the current minimum standard rate at 15 % for a period long enough to ensure legal certainty, while allowing further review.

(6) The maintenance of the current minimum standard rate does not preclude a further revision of VAT legislation before 31 December 2017 to address the introduction of a definitive VAT regime for intra-Union trade.

(7) In order to ensure the uninterrupted application of the minimum standard rate established by Directive 2006/112/EC, it is appropriate that this Directive apply from 1 January 2016.

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

HAS ADOPTED THIS DIRECTIVE:

Article 1

Article 97 of Directive 2006/112/EC is replaced by the following:

Article 1

Article 97

From 1 January 2016 until 31 December 2017, the standard rate may not be lower than 15 %..

Article 2

1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 1 August 2016. They shall immediately inform the Commission thereof. When Member States adopt those measures, they shall contain a reference to this Directive or shall 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 measures of national law which they adopt in the field covered by this Directive.

Article 3

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

Article 4

This Directive is addressed to the Member States.

Done at Brussels, 25 May 2016. For the Council The President J.R.V.A. Dijsselbloem

Versions

1. 2016-05-25

Cited by

• Opinion of Advocate General Saugmandsgaard Øe delivered on 18 March 2021 Case C‑855/19 G. sp. z o.o. v Dyrektor Izby Administracji Skarbowej w Bydgoszczy (Request for a preliminary ruling from the Naczelny Sąd Administracyjny (Supreme Administrative Court, Poland)) Opinion · Grade B

  Article 273 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, as amended by Council Directive (EU) 2016/856 of 25 May 2016, is to be interpreted as not precluding the introduction of an obligation to make early payment of VAT in respect of intra-Community acquisitions of motor fuels within five days following the entry of the motor fuels into the national territory, provided that that obligation is compatible with the other provisions of that directive, in particular those relating to the chargeability of VAT.

• Opinion of Advocate General Saugmandsgaard Øe delivered on 18 March 2021 Case C‑855/19 G. sp. z o.o. v Dyrektor Izby Administracji Skarbowej w Bydgoszczy (Request for a preliminary ruling from the Naczelny Sąd Administracyjny (Supreme Administrative Court, Poland)) Opinion · Grade B

  Articles 62 and 69 of Directive 2006/112, as amended by Directive 2016/856, are to be interpreted as precluding an obligation to make early payment in respect of intra-Community acquisitions of motor fuels within five days following the entry of the motor fuels into the national territory, in so far as it allows the tax authority to require payment from the taxable person before the VAT becomes chargeable, it being understood that the possibility of collecting interim payments, as provided for in Article 206 of that directive, can relate only to VAT that has become chargeable pursuant to the p

• Opinion of Advocate General Saugmandsgaard Øe delivered on 18 March 2021 Case C‑855/19 G. sp. z o.o. v Dyrektor Izby Administracji Skarbowej w Bydgoszczy (Request for a preliminary ruling from the Naczelny Sąd Administracyjny (Supreme Administrative Court, Poland)) Opinion · Grade B

  Article 206 of Directive 2006/112, as amended by Directive 2016/856, is to be interpreted as precluding an obligation to make early payment of VAT in respect of intra-Community acquisitions of motor fuels, since that obligation relates to the gross amount of the VAT payable on that transaction, considered in isolation, and not on the net amount of the VAT calculated over the tax period as a whole.

• Judgment of the Court (Fourth Chamber) of 4 October 2024 (request for a preliminary ruling from the Upravni sud u Zagrebu – Croatia) – UP CAFFE d.o.o. v Ministarstvo financija Republike Hrvatske (Case C-171/23, UP CAFFE) Notice · Grade B

  Reference for a preliminary rulingTaxationCommon system of value added tax (VAT)Directive 2006/112/ECPoint 19 of Article 287VAT exemption scheme for small enterprisesAbusive practice by forming a new companyC/2024/6892Language of the case: Croatian Upravni sud u Zagrebu Applicant: UP CAFFE d.o.o. Defendant: Ministarstvo financija Republike Hrvatske Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, as amended by Council Directive (EU) 2016/856 of 25 May 2016, read in the light of the principle of the prohibition of abusive practices, must be interpreted

• Judgment of the Court (Fourth Chamber) 4 October 2024 Judgment · Grade B

  This request for a preliminary ruling concerns the interpretation of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1), as amended by Council Directive (EU) 2016/856 of 25 May 2016 (OJ 2016 L 142, p. 12) (the VAT Directive), and the principle of the prohibition of abusive practices.

• Judgment of the Court (Fourth Chamber) 4 October 2024 Judgment · Grade B

  On those grounds, the Court (Fourth Chamber) hereby rules: Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, as amended by Council Directive (EU) 2016/856 of 25 May 2016, read in the light of the principle of the prohibition of abusive practices, must be interpreted as meaning that, where it is established that the formation of a company constitutes an abusive practice intended to maintain the benefit of the value added tax exemption scheme laid down in point 19 of Article 287 of that Directive 2006/112, in respect of an activity previously carried out,