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Council Directive 2006/112/ECShow full title

Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax

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Section 2Exemptions or graduated relief

Article 282

The exemptions and graduated tax relief provided for in this Section shall apply to the supply of goods and services by small enterprises.

Article 283

1.The arrangements provided for in this Section shall not apply to the following transactions:

(a)

transactions carried out on an occasional basis, as referred to in Article 12;

(b)

supplies of new means of transport carried out in accordance with the conditions specified in Article 138(1) and (2)(a);

(c)

supplies of goods or services carried out by a taxable person who is not established in the Member State in which the VAT is due.

2.Member States may exclude transactions other than those referred to in paragraph 1 from the arrangements provided for in this Section.

Article 284

1.Member States which have exercised the option under Article 14 of 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(1) of introducing exemptions or graduated tax relief may retain them, and the arrangements for applying them, if they comply with the VAT rules.

2.Member States which, at 17 May 1977, exempted taxable persons whose annual turnover was less than the equivalent in national currency of 5 000 European units of account at the conversion rate on that date, may raise that ceiling up to EUR 5 000.

Member States which applied graduated tax relief may neither raise the ceiling for graduated tax relief nor render the conditions for the granting of it more favourable.

Article 285

Member States which have not exercised the option under Article 14 of Directive 67/228/EEC may exempt taxable persons whose annual turnover is no higher than EUR 5 000 or the equivalent in national currency.

The Member States referred to in the first paragraph may grant graduated tax relief to taxable persons whose annual turnover exceeds the ceiling fixed by them for its application.

Article 286

Member States which, at 17 May 1977, exempted taxable persons whose annual turnover was equal to or higher than the equivalent in national currency of 5 000 European units of account at the conversion rate on that date, may raise that ceiling in order to maintain the value of the exemption in real terms.

Article 287

Member States which acceded after 1 January 1978 may exempt taxable persons whose annual turnover is no higher than the equivalent in national currency of the following amounts at the conversion rate on the day of their accession:

(1)

Greece: 10 000 European units of account;

(2)

Spain: ECU 10 000;

(3)

Portugal: ECU 10 000;

(4)

Austria: ECU 35 000;

(5)

Finland: ECU 10 000;

(6)

Sweden: ECU 10 000;

(7)

Czech Republic: EUR 35 000;

(8)

Estonia: EUR 16 000;

(9)

Cyprus: EUR 15 600;

(10)

Latvia: EUR 17 200;

(11)

Lithuania: EUR 29 000;

(12)

Hungary: EUR 35 000;

(13)

Malta: EUR 37 000 if the economic activity consists principally in the supply of goods, EUR 24 300 if the economic activity consists principally in the supply of services with a low value added (high inputs), and EUR 14 600 in other cases, namely supplies of services with a high value added (low inputs);

(14)

Poland: EUR 10 000;

(15)

Slovenia: EUR 25 000;

(16)

Slovakia: EUR 35 000.

Article 288

The turnover serving as a reference for the purposes of applying the arrangements provided for in this Section shall consist of the following amounts, exclusive of VAT:

(1)

the value of supplies of goods and services, in so far as they are taxed;

(2)

the value of transactions which are exempt, with deductibility of the VAT paid at the preceding stage, pursuant to Articles 110 or 111, Article 125(1), Article 127 or Article 128(1);

(3)

the value of transactions which are exempt pursuant to Articles 146 to 149 and Articles 151, 152 or 153;

(4)

the value of real estate transactions, financial transactions as referred to in points (b) to (g) of Article 135(1), and insurance services, unless those transactions are ancillary transactions.

However, disposals of the tangible or intangible capital assets of an enterprise shall not be taken into account for the purposes of calculating turnover.

Article 289

Taxable persons exempt from VAT shall not be entitled to deduct VAT in accordance with Articles 167 to 171 and Articles 173 to 177, and may not show the VAT on their invoices.

Article 290

Taxable persons who are entitled to exemption from VAT may opt either for the normal VAT arrangements or for the simplified procedures provided for in Article 281. In this case, they shall be entitled to any graduated tax relief provided for under national legislation.

Article 291

Subject to the application of Article 281, taxable persons enjoying graduated relief shall be regarded as taxable persons subject to the normal VAT arrangements.

Article 292

The arrangements provided for in this Section shall apply until a date to be fixed by the Council in accordance with Article 93 of the Treaty, which may not be later than that on which the definitive arrangements referred to in Article 402 enter into force.

(1)

OJ 71, 14.4.1967, p. 1303/67. Directive repealed by Directive 77/388/EEC.

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