(1)

In accordance with Council Directive 2006/112/EC (3), Member States are to exempt from value added tax (VAT) the importation of goods by, and the supply of goods and services to, the Union, the European Atomic Energy Community, the European Central Bank or the European Investment Bank or the bodies set up by the Union to which the Protocol (No 7) on the privileges and immunities of the European Union, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union (‘the Protocol’), applies, within the limits and under the conditions of the Protocol and the agreements for its implementation or the headquarters agreements, in so far as it does not lead to distortion of competition. That exemption is, however, strictly limited to purchases made for official use and it does not extend to situations where goods and services are purchased by Union bodies in order to respond to the emergency situation posed by the COVID-19 pandemic, particularly when they are to be made available for free to Member States or third parties such as national authorities or institutions.

(2)

Therefore, because there is still an urgent need for the adoption of measures in order to create readiness to act when dealing with the ongoing sanitary crisis, it is necessary to ensure a VAT exemption for the purchase of goods and services by the Commission or by an agency or body established under Union law in the execution of their tasks, in order to respond to the COVID-19 pandemic. This would ensure that measures taken under the various Union initiatives in that situation are not hampered by amounts of VAT which cannot be recovered by the Union institutions, or by the compliance burden resulting from obligations to register for VAT.

(3)

Council Directive (EU) 2020/2020 (4) is not sufficient to achieve the objective of enhancing the fight against the COVID-19 pandemic since it only allows, for a limited period of time, the application by Member States of reduced rates to the supply of COVID-19 in vitro diagnostic medical devices and services closely linked to such devices or the granting of an exemption with deductibility of VAT paid at the preceding stage in respect of the supply of COVID-19 vaccines and in vitro diagnostic medical devices, and services closely linked to such vaccines and devices.

(4)

Directive 2006/112/EC should therefore be amended accordingly.

(5)

In view of the current COVID-19 pandemic, the measures that could fall under the new exemption to address the effects of the COVID-19 pandemic are already underway, for example under the Emergency Support Instrument established by Council Regulation (EU) 2020/521 (5). If VAT were to be paid for transactions related to such measures, valuable resources would be lost, resulting in fewer goods and services being provided to the Member States in proportion to the amount of tax to be paid. In order to make the best use of the Union budget in addressing the very serious consequences of the COVID-19 pandemic, the exemptions introduced by this Directive should therefore apply, with retroactive effect, from 1 January 2021. Such retroactive application is indispensable to avoid the measures that are being taken to address the effects of the COVID-19 pandemic from being deprived of their effect. Any adjustment required in respect of transactions initially taxed could be made by using correction mechanisms already in place, for example through a subsequent VAT return.

(6)

In view of the urgency of the situation related to the COVID-19 pandemic, this Directive should enter into force on the day of its publication in the Official Journal of the European Union,

(1)

Article 143 is amended as follows:

(2)

Article 151 is amended as follows:

(1)

Regulation (EU) 2019/1241 provides for the establishment of technical measures for the North Sea.

(2)

Belgium, Denmark, Germany, France, the Netherlands and Sweden (Scheveningen Group) have a direct fisheries management interest in the North Sea. On 15 and 19 October 2020, those Member States submitted two joint recommendations in accordance with Article 18(1) of Regulation (EU) No 1380/2013 of the European Parliament and of the Council (2) and Article 15(3) of Regulation (EU) 2019/1241, proposing the adoption of certain modifications of the current provisions on the plaice box and the sprat box in the North Sea set out in Annex V to Regulation (EU) 2019/1241 by means of a delegated act of the Commission. They submitted a revised version of the joint recommendation on the sprat box on 2 February 2021. Both joint recommendations were sent by those Member States to the relevant advisory councils for consultation.

(3)

Given that both joint recommendations propose changes to Annex V to Regulation (EU) 2019/1241, this delegated Regulation provides for the measures recommended by the Member States as regards both the sprat box and the plaice box.

(4)

The Scientific, Technical and Economic Committee for Fisheries (STECF) assessed the evidence provided by the Member States in support of the provisions included in both joint recommendations (3). The proposed measures were evaluated in accordance with the principles established in Article 15(4) of Regulation (EU) 2019/1241.

(5)

The joint recommendation submitted by the Member States on the plaice box suggested the introduction of a specific exemption for vessels whose engine power exceeds 221 kW using Danish seines, provided that such vessels comply with the mesh sizes set out in point 1.1 of Part B of Annex V to Regulation (EU) 2019/1241. The STECF analysed the evidence presented by the Member States and concluded that, considering the limited number of vessels concerned and the limited impact that Danish anchor seine has on the bottom, the introduction of the specific exemption for Danish seine is not expected to have any significant effect on the level of protection inside the area. The proposed measure should therefore be included in this Regulation.

(6)

The joint recommendation on the plaice box further suggested replacing, in point 2.2(c) of part C of Annex V to Regulation (EU) 2019/1241, the term ‘bottom trawls’ by the term ‘bottom otter trawls’. The STECF analysed the evidence presented by the Member States and concluded that the proposed change is likely to remove any ambiguity in the Regulation and provide levels of protection that are at least equivalent, and likely higher, to what is currently prescribed in Regulation (EU) 2019/1241. The proposed measure should therefore be included in this Regulation.

(7)

The joint recommendation on the plaice box also suggested a maximum of 24m for the vessel length of beam trawlers to be included, after this Regulation applies, in the list of vessels set out in point 2.4 of part C of Annex V to Regulation (EU) 2019/1241. The STECF analysed the evidence presented by the Member States and concluded that this restriction will ensure levels of protection that are at least equivalent to what is currently prescribed in Regulation (EU) 2019/1241. The proposed measure should therefore be included in this Regulation.

(8)

The joint recommendation submitted by the Member States on the sprat box suggested to continue for a period of three years the practice of lifting the sprat box for vessels with certain gears from 1 July to 31 October, as provided for by Commission Delegated Regulation (EU) No 1395/2014 (4) for the period until 31 December 2020. The STECF analysed the evidence presented by the Member States on the sprat box and concluded that there is no clear indication that the lifting of the sprat box since 2017 has caused any damage on the herring stock. The STECF further concluded that it is unlikely that lifting the sprat box would lead to lower levels of protection than what is currently in place. STECF however observed that more years of fishery monitoring are needed in order to prove that equivalent levels of protection will be maintained. The STECF therefore suggested that the impact of the lifting is re-evaluated after three years of monitoring. The Member States committed to monitoring the impact of the lifting of the sprat box during this period by collecting the data set out in their joint recommendation with regard to herring bycatch in the fishery for sprat. This data will be submitted for evaluation by the STECF. The proposed measure should therefore be included in this Regulation.

(9)

Regulation (EU) 2019/1241 should therefore be amended accordingly.

(10)

As the measures provided for in this Regulation have a direct impact on the planning of the fishing season of Union vessels and on related economic activities, this Regulation should enter into force immediately after its publication,