REPORT on the proposal for a Council directive amending Directive 2006/112/EC as regards exemptions on importations and on certain supplies, in respect of Union measures in the public interest

11.5.2021 - (COM(2021)0181 – C9‑0132/2021 – 2021/0097(CNS)) - *

Committee on Economic and Monetary Affairs
Rapporteur: Irene Tinagli
(Simplified procedure – Rule 52(1) of the Rules of Procedure)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a Council directive amending Directive 2006/112/EC as regards exemptions on importations and on certain supplies, in respect of Union measures in the public interest

(COM(2021)0181 – C9‑0132/2021 – 2021/0097(CNS))

(Special legislative procedure – consultation)

The European Parliament,

– having regard to the Commission proposal to the Council (COM(2021)0181),

– having regard to Article 113 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C9‑0132/2021),

– having regard to Rule 82 of its Rules of Procedure,

– having regard to the report of the Committee on Economic and Monetary Affairs (A9-0155/2021),

1. Approves the Commission proposal;

2. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

3. Asks the Council to consult Parliament again if it intends to substantially amend the text approved by Parliament;

4. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

 

EXPLANATORY STATEMENT

The VAT Directive provides for an exemption provided for by Articles 143(1)(fa) and 151(1)(aa) allowing for the deductibility of VAT on the importation of goods by and the supply of goods and services to European bodies to which the Protocol on the privileges and immunities of the European Union (PPI) applies. Based on the respective interpretation of the PPI, that exemption is strictly limited to purchases made for the official use of that EU body. It would not apply to the purchase of goods and services intended for being made available for free to Member States or a national health authority or hospital as this is not regarded as official use. Precisely such cases can however become particularly important in response to crises, such as the COVID-19 pandemic, and hence the currently applicable VAT exemptions are deemed insufficient in this respect.

 

The current proposal aims thus at introducing a broad-based VAT exemption for the acquisition of goods and services by the Commission or by an agency or body established under Union law in the fulfilment of a mandate conferred on it by Union law in the public interest.

 

The transactions covered by the exemption include the following:

- diagnostic tests and testing materials, and laboratory equipment;

- personal protective equipment (PPE) like gloves, respirators, masks, gowns, disinfection products and equipment;

- tents, camp beds, clothing and food;

- search and rescue equipment, sandbags, life jackets and inflatable boats;

- antimicrobials and antibiotics, chemical threat antidotes, treatments for radiation injury, antitoxins, iodine tablets;

- blood products or antibodies;

- radiation measuring devices;

- development, production and procurement of necessary products, research and innovation activities, strategic stockpiling of products; pharmaceutical licences, quarantine facilities, clinical trials, disinfection of premises, etc.

 

The proposal will remove VAT as a cost factor for EU programmes. It is important to note that the introduction of this VAT exemption will have no negative implications for the EU budget.

 

In order to reduce administrative burden associated with the use of the paper version of the exemption certificate the proposal also provides for the introduction of an electronic form.

 

In light of the above, your rapporteur considers that the proposal should be approved at the earliest opportunity so the Commission can deliver the solutions required to deal without undue burden with the COVID-19 pandemic. Under the current exceptional circumstances, your rapporteur proposes therefore that it be approved without amendments pursuant to a simplified procedure under Rule 52(1) of the Rules of Procedure.

 

 

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PROCEDURE – COMMITTEE RESPONSIBLE

Title	Amending Directive 2006/112/EC as regards exemptions on importations and on certain supplies, in respect of Union measures in the public interest
References	COM(2021)0181 – C9-0132/2021 – 2021/0097(CNS)
Date Parliament was consulted	16.4.2021
Committee responsible  Date announced in plenary	ECON 26.4.2021
Committees asked for opinions  Date announced in plenary	IMCO 26.4.2021
Not delivering opinions  Date of decision	IMCO 26.4.2021
Rapporteurs  Date appointed	Irene Tinagli 22.4.2021
Simplified procedure - date of decision	10.5.2021
Discussed in committee	10.5.2021
Date adopted	10.5.2021
Date tabled	11.5.2021