VAT - Denmark, Italy, Luxembourg, Romania, Sweden and the UK
The Council adopted decisions authorising the following derogations under the EU’s common VAT system:
The United Kingdom can continue with a measure concerning the right of deduction of VAT borne on the hire or lease of motor cars also used for private purposes. The decision will apply from 1 January 2014 until 31 December 2016 at the latest
Denmark and Sweden can apply a special procedure concerning tolls paid for use of the Oresund fixed link between the two countries, enabling taxpayers to recover VAT from a single administration. The derogation will apply from 1 January 2014 until 31 December 2020.
Italy can continue application of a measure restricting to 40% the right of a taxable person to deduct VAT on expenditure related to motorised road vehicles when the vehicle is not used exclusively for business purposes. Italy can also continue application of an exemption from VAT of taxable persons whose annual turnover is no higher than £65,000, with the possibility to increase the threshold in order to maintain the value of the exemption in real terms.
Luxembourg is allowed introduce an exemption from VAT for taxable persons whose annual turnover is no higher than £25,000.
Romania can continue implementation until 31 December 2016 of a reverse charge of tax liability for the payment of VAT on supplies of wood products by taxable persons.