1. Member States may exempt the supply of goods and services made within their territory by taxable persons who are established in that territory and whose Member State annual turnover, attributable to such supplies, does not exceed the threshold fixed by those Member States for the application of this exemption. That threshold shall be no higher than EUR 85 000 or the equivalent in national currency.
Member States may fix varying thresholds for different business sectors based on objective criteria. However, none of those thresholds shall exceed the threshold of EUR 85 000 or the equivalent in national currency.
Member States shall ensure that a taxable person eligible to benefit from more than one sectoral threshold can only use one of those thresholds.
Thresholds set by a Member State shall not differentiate between taxable persons who are established and those who are not established in that Member State.
2.
Member States that have put in place the exemption under paragraph 1 shall also grant that exemption to the supplies of goods and services in their own territory made by taxable persons established in another Member State, provided that the following conditions are fulfilled:
(a)
the Union annual turnover of that taxable person does not exceed EUR 100 000 ;
(b)
the value of the supplies in the Member State where the taxable person is not established does not exceed the threshold applicable in that Member State for granting the exemption to taxable persons established in that Member State.
3.
Notwithstanding Article 292b, in order for a taxable person to avail itself of the exemption in a Member State in which that taxable person is not established, the taxable person shall:
(a)
give prior notification to the Member State of establishment; and
(b)
be identified for the application of the exemption by an individual number in the Member State of establishment only.
Member States may use the individual VAT identification number already allocated to the taxable person in respect of that person’s obligations under the internal system or apply the structure of a VAT number or any other number for the purpose of the identification referred to in point (b) of the first subparagraph.
The individual identification number referred to in point (b) of the first subparagraph shall have the suffix ‘EX’, or the suffix ‘EX’ shall be added to that number.
4. The taxable person shall inform the Member State of establishment in advance, by means of an update to a prior notification, of any changes to the information previously provided in accordance with the first subparagraph of paragraph 3, including the intention to avail itself of the exemption in a Member State or Member States other than the ones indicated in the prior notification and the decision to cease applying the exemption scheme in a Member State or Member States in which that taxable person is not established.
The cessation shall be effective as of the first day of the next calendar quarter following the receipt of the information from the taxable person or, where such information is received during the last month of a calendar quarter, as of the first day of the second month of the next calendar quarter.
5.
The exemption shall apply as regards the Member State in which the taxable person is not established and where that taxable person intends to avail itself of the exemption according to:
(a)
a prior notification, from the date of informing the taxable person of the individual identification number by the Member State of establishment; or
(b)
an update to a prior notification, from the date of confirming the number to the taxable person in consequence of his update by the Member State of establishment.
The date referred to in the first subparagraph shall be no later than 35 working days following the receipt of the prior notification or the update to the prior notification referred to in the first subparagraph of paragraph 3 and in the first subparagraph of paragraph 4, except in specific cases where in order to prevent tax evasion or avoidance Member States may require additional time to carry out the necessary checks.
6. The corresponding value in national currency of the amount referred to in this Article shall be calculated by applying the exchange rate published by the European Central Bank on 18 January 2018.
Article 284a
1.
The prior notification referred to in point (a) of the first subparagraph of Article 284(3) shall contain at least the following information:
(a)
the name, activity, legal form and address of the taxable person;
(b)
the Member State or Member States in which the taxable person intends to avail itself of the exemption;
(c)
the total value of supplies of goods and/or services carried out in the Member State in which the taxable person is established and in each of the other Member States during the previous calendar year;
(d)
the total value of supplies of goods and/or services carried out in the Member State in which the taxable person is established and in each of the other Member States during the current calendar year prior to the notification.
The information referred to in point (c) of the first subparagraph of this paragraph has to be given for each previous calendar year belonging to the period referred to in the first subparagraph of Article 288a(1) as regards any Member State which applies the option stipulated therein.
2. Where the taxable person informs the Member State of establishment in accordance with Article 284(4) that it intends to avail itself of the exemption in a Member State or Member States other than the ones indicated in the prior notification, that person is not obliged to give the information referred to in paragraph 1 of this Article in so far as that information has already been included in reports previously submitted under Article 284b.
The update to a prior notification referred to in the first subparagraph shall include the individual identification number referred to in point (b) of Article 284(3).
Article 284b
1.
A taxable person availing itself of the exemption provided for in Article 284(1) in a Member State in which that person is not established in accordance with the procedure under Article 284(3) and (4) shall report for each calendar quarter to the Member State of establishment the following information, including the individual identification number referred to in point (b) of Article 284(3):
(a)
the total value of supplies carried out during the calendar quarter in the Member State of establishment or ‘0’ if no supplies have been made;
(b)
the total value of supplies carried out during the calendar quarter in each of the Member States other than the Member State of establishment or ‘0’ if no supplies have been made.
2. The taxable person shall communicate the information set out in paragraph 1 within one month from the end of the calendar quarter.
3. When the Union annual turnover threshold referred to in point (a) of Article 284(2) is exceeded, the taxable person shall inform the Member State of establishment within 15 working days. At the same time, the taxable person shall be required to report the value of the supplies referred to in paragraph 1 that have been made from the beginning of the current calendar quarter up until the date the Union annual turnover threshold was exceeded.
Article 284c
1.
For the purposes of points (c) and (d) of Article 284a(1) and Article 284b(1) the following shall apply:
(a)
the values shall consist of the amounts listed in Article 288;
(b)
the values shall be denominated in euro;
(c)
where the Member State granting the exemption applies varying thresholds as referred to in the second subparagraph of Article 284(1), the taxable person shall be obliged in respect of that Member State to report separately the total value of supplies of goods and/or services as regards each threshold that may be applicable.
For the purposes of point (b) of the first subparagraph, Member States which have not adopted the euro may require the values to be expressed in their national currencies. If the supplies have been made in other currencies, the taxable person shall use the exchange rate applying on the first day of the calendar year. The conversion shall be made by applying the exchange rate published by the European Central Bank for that day, or, if there is no publication on that day, on the next day of publication.
2. The Member State of establishment may require the information referred to in Article 284(3) and (4) and in Article 284b(1) and (3) to be submitted by electronic means, in accordance with conditions laid down by that Member State.
Article 284d
1.
A taxable person availing itself of the exemption in a Member State in which that taxable person is not established shall not be required in respect of the supplies covered by the exemption in that Member State:
(a)
to be registered for VAT purposes pursuant to Articles 213 and 214;
(b)
to submit a VAT return pursuant to Article 250.
2. A taxable person availing itself of the exemption in the Member State of establishment and in any Member State in which that taxable person is not established shall not be required, in respect of the supplies covered by the exemption in the Member State of establishment, to submit a VAT return pursuant to Article 250.
3. By derogation from paragraphs 1 and 2 of this Article, where a taxable person fails to comply with the rules provided for in Article 284b, Member States may require such a taxable person to fulfil VAT obligations such as those referred to in paragraph 1 of this Article.
Article 284e
The Member State of establishment shall, without delay, either deactivate the identification number referred to in point (b) of Article 284(3) or, if the taxable person continues to avail itself of the exemption in another Member State or other Member States, adapt the information received pursuant to Article 284(3) and (4) as regards the Member State or Member States concerned, in the following cases:
(a)
the total value of supplies reported by the taxable person exceeds the amount referred to in point (a) of Article 284(2);
(b)
the Member State granting the exemption has notified that the taxable person is not eligible for the exemption or the exemption has ceased to apply in that Member State;
(c)
the taxable person has informed of its decision to cease to apply the exemption; or
(d)
the taxable person has informed, or it may otherwise be assumed, that his activities have ceased.
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