The EU’s common system of value added tax (VAT)

 

SUMMARY OF:

Directive 2006/112/EC — the EU’s common system of value added tax (VAT)

WHAT IS THE AIM OF THE DIRECTIVE?

It recasts and repeals the original sixth value added tax (VAT) directive, to clarify the EU’s VAT legislation currently in force.

KEY POINTS

VAT is applied to all transactions carried out in the EU for payment by a taxable person, i.e. any individual or body that supplies goods and services in the course of business. Imports by any person are also subject to VAT.

Taxable transactions include supplies of goods or services within the EU, intra-EU acquisitions of goods (goods supplied and dispatched or transported by a business in one EU country to a business in another) and imports of goods into the EU from outside.

FROM WHEN DOES THE DIRECTIVE APPLY?

It has applied from 1 January 2007 and had to become law in the EU countries by 1 January 2008.

BACKGROUND

For more information, see:

MAIN DOCUMENT

Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ L 347, 11.12.2006, pp. 1–118)

Successive amendments to Directive 2006/112/EC have been incorporated into the basic text. This consolidated version is of documentary value only.

RELATED DOCUMENTS

Council Directive (EU) 2018/2057 of 20 December 2018 amending Directive 2006/112/EC on the common system of value added tax as regards the temporary application of a generalised reverse charge mechanism in relation to supplies of goods and services above a certain threshold (OJ L 329, 27.12.2018, pp. 3-7)

Council Regulation (EU) No 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax (OJ L 268, 12.10.2010, pp. 1-18)

See consolidated version.

Council Directive 2009/132/EC of 19 October 2009 determining the scope of Article 143(b) and (c) of Directive 2006/112/EC as regards exemption from value added tax on the final importation of certain goods (OJ L 292, 10.11.2009, pp. 5-30)

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, pp. 23-28)

See consolidated version.

Council Directive 2007/74/EC of 20 December 2007 on the exemption from value added tax and excise duty of goods imported by persons travelling from third countries (OJ L 346, 29.12.2007, pp. 6-12)

Council Directive 2006/79/EC of 5 October 2006 on the exemption from taxes of imports of small consignments of goods of a non-commercial character from third countries (codified version) (OJ L 286, 17.10.2006, pp. 15-18)

last update 15.04.2019