1.
Member States shall exempt the following transactions:
(a)
the supply of goods or services under diplomatic and consular arrangements;
(aa)
the supply of goods or services to the European Community, the European Atomic Energy Community, the European Central Bank or the European Investment Bank, or to the bodies set up by the Communities to which the Protocol of 8 April 1965 on the privileges and immunities of the European Communities applies, within the limits and under the conditions of that Protocol and the agreements for its implementation or the headquarters agreements, in so far as it does not lead to distortion of competition;
(ab)
the supply of goods or services to the Commission or to an agency or a body established under Union law where the Commission or such an agency or body purchases those goods or services in the execution of the tasks conferred on it by Union law in order to respond to the COVID-19 pandemic, except where the goods and services purchased are used, either immediately or at a later date, for the purposes of onward supplies for consideration by the Commission or such an agency or body;
(b)
the supply of goods or services to international bodies, other than those referred to in point (aa), recognised as such by the public authorities of the host Member States, and to members of such bodies, within the limits and under the conditions laid down by the international conventions establishing the bodies or by headquarters agreements;
(ba)
the supply of goods or services within a Member State, intended either for the armed forces of other Member States for the use of those forces, or of the civilian staff accompanying them, or for supplying their messes or canteens when such forces take part in a defence effort carried out for the implementation of a Union activity under the common security and defence policy;
(bb)
the supply of goods or services to another Member State, intended for the armed forces of any Member State other than the Member State of destination itself, for the use of those forces, or of the civilian staff accompanying them, or for supplying their messes or canteens when such forces take part in a defence effort carried out for the implementation of a Union activity under the common security and defence policy;
(c)
the supply of goods or services within a Member State which is a party to the North Atlantic Treaty, intended either for the armed forces of other States party to that Treaty for the use of those forces, or of the civilian staff accompanying them, or for supplying their messes or canteens when such forces take part in the common defence effort;
(d)
the supply of goods or services to another Member State, intended for the armed forces of any State which is a party to the North Atlantic Treaty, other than the Member State of destination itself, for the use of those forces, or of the civilian staff accompanying them, or for supplying their messes or canteens when such forces take part in the common defence effort;
(e)
the supply of goods or services to the armed forces of the United Kingdom stationed in the island of Cyprus pursuant to the Treaty of Establishment concerning the Republic of Cyprus, dated 16 August 1960, which are for the use of those forces, or of the civilian staff accompanying them, or for supplying their messes or canteens.
Pending the adoption of common tax rules, the exemptions provided for in the first subparagraph, other than that referred to in point (ab), shall be subject to the limitations laid down by the host Member State.
2. In cases where the goods are not dispatched or transported out of the Member State in which the supply takes place, and in the case of services, the exemption may be granted by means of a refund of the VAT.
3. When the conditions for the exemption laid down in paragraph 1, first subparagraph, point (ab), cease to apply, the Commission or the agency or body concerned which received the exempt supply shall inform the Member State in which the exemption was applied and the supply of those goods or services shall be subject to VAT under the conditions applicable at that time.
Article 151a
1. Member States shall use an electronic certificate to confirm that a transaction qualifies for an exemption provided for in Article 151(1), first subparagraph. The recipient of a supply of goods or services to which or to whom the exempt supply of goods or services is made (an ‘eligible body or individual’) shall issue the certificate and, together with the host Member State, shall sign it by electronic means.
2. Paragraph 1 of this Article shall not apply to transactions where the exemption is provided by means of a refund as referred to in Article 151(2) and where the VAT is due in the host Member State. Member States may nevertheless opt to provide for the use of an electronic certificate, in accordance with paragraph 1 of this Article, for those transactions.
3.
The data set of the electronic certificate shall include at least:
(a)
the identification data of the eligible body or individual, including an identification number issued by the host Member State where available;
(b)
the identification data of the competent authority certifying the exemption;
(c)
the declaration by the eligible body or individual on the intended use of the goods and services acquired, and regarding the fulfilment of the conditions for the exemption as determined by the relevant Member State;
(d)
the description, quantity and value, excluding VAT and excise duty, of the goods and services for which the exemption is requested, including the vehicle identification number or the address and the purpose of the use of the immovable property where required;
(e)
the certification by the competent authorities of the host Member State; and
(f)
information concerning the supplier, including name and address, Member State of establishment and VAT/excise number or tax reference number.
4. When making use of the electronic certificate, the host Member State may decide to use either a common VAT and excise duty exemption certificate or two separate certificates.
5. If the goods or services are intended for official use, Member States may dispense with the requirement for the eligible body to have the certificate signed by the host Member State under the conditions they may lay down. Such dispensation may be withdrawn in the case of abuse. Member States shall inform the Commission of the contact point designated to identify the services responsible for signing the certificate by electronic means and the extent to which they dispense with this requirement. The Commission shall inform the other Member States of the information received from Member States.
6.
By way of derogation from paragraphs 1 and 2 of this Article, Member States may opt to use for any transaction made until 30 June 2032:
(a)
the paper certificate set out in Annex II to Council Implementing Regulation (EU) No 282/2011 ( 9 ); or
(b)
where the VAT is due in the host Member State, any electronic system that a Member State has in place or any other paper version of the certificate that a Member State provides.
7.
The Commission shall, by means of implementing acts, determine the technical details and specifications as regards the electronic format of the certificate and its processing, taking into account the necessities of the Member States, including as regards the applicable IT system for this purpose. The processing shall in particular consist of:
(a)
the access for eligible bodies or individuals, Member States and suppliers to the IT system;
(b)
the issuing and signing of the exemption certificate by electronic means;
(c)
the recording and storing of electronic certificates issued by eligible bodies and individuals;
(d)
making electronic certificates available to the eligible bodies and individuals, the suppliers making an exempt supply and the competent authorities of the Member States.
Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 5 of Regulation (EU) No 182/2011 of the European Parliament and of the Council ( 10 ) and for this purpose the committee shall be the committee established by Article 58 of Council Regulation (EU) No 904/2010 ( 11 ).
8. The Commission shall develop, maintain, host and technically manage the central IT system for storing and processing electronic certificates.
Article 151b
Without prejudice to Article 151(3), if the goods and/or services do not comply with the conditions for the exemption or if the goods and/or services were not used in the manner intended, the eligible body or individual which or who issued and signed the certificate shall undertake to pay the VAT to the Member State where it is due.