Value added tax (VAT): common system

The European Parliament adopted, by 625 votes in favour to 22 against with 15 abstentions, under the consultation procedure, a legislative resolution amending the proposal for a Council Directive amending VAT Directive 2006/112/EC on the common system of value added tax. The report had been tabled for consideration in plenary by Dariusz ROSATI (PES, PL) on behalf of the Committee on Economic and Monetary Affairs.

The main amendments aim to:

- clarify the scope of the special VAT scheme for the supply of natural gas, heat and refrigeration: MEPs propose: (a) including a cross-reference to the Directive 2003/55/EC concerning common rules for the internal market in natural gas, which includes common definitions of transmissions of gas through pipelines and distribution of gas; (b) amending the title of Section IV of Chapter 1 of Title V of the VAT Directive in order to make sure that it covers the supply of natural gas through transmission or distribution networks; (c) specifying that "transport by vessel" is understood to take place from pipeline to pipeline;

- clarify the rule concerning the right of VAT deduction in the event of acquisition, construction, renovation or substantial transformation of immovable property: according to MEPs, minor repairs or improvements that are of limited economic significance should be excluded from the scope of this provision.