The EU Council reached political agreement on a draft regulation laying down new implementing measures for directive 2006/112 on the EU system of Value Added Tax. The draft regulation, which recasts regulation 1777/2005, clarifies certain aspects of the VAT directive (2006/112/EC) with the objective of ensuring better compliance with the objectives of the EU internal market.

It provides for:

• implementing measures for directive 2008/8/EC as regards the place of supply of services;
• adaptation of regulation 1777/2005 to the VAT directive after its recast in 2006;
• implementing measures for other elements of the VAT directive.

The regulation will be adopted without discussion at a forthcoming Council meeting.

Full details are available from http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/118888.pdf