European Commission Adopts Proposal for Decision to Extend Germany’s Special VAT Measure on Emission Allowances

The European Commission (EC) July 12 adopted Proposed Council Implementing Decision No. COM (2024) 294, to amend Implementing Decision (EU) 2021/1778 to extend Germany’s authorization for a special measure deviating from Article 193 of EU Directive 2006/112/EC, on the common system of VAT. The deviation in Germany’s special measure is to designate taxable persons receiving transfers of emission allowances under the Fuel Emission Allowance Trading Act, as liable for VAT under the reverse charge mechanism. Reasons for the proposal include the allowance-trading sector’s susceptibility to fraud, and the impossibility to apply Articles 199a(1)(a) and (b) of the directive to transmissions ...