Date: 2021-05-17Category: Not ApplicableState: Union GovernmentCountry: Europe
Council Implementing Decision (EU) 2021/786 of 10 May 2021 authorising the Republic of Croatia to apply a tax exemption to gas oil used to operate machinery in humanitarian demining in accordance with Article 19 of Directive 2003/96/EC
Executive Summary:
This Council Implementing Decision (EU) 2021/786 authorises Croatia to apply a tax exemption to gas oil used to operate machinery in humanitarian demining within its territory. The exemption is effective from 20 December 2020 until 19 December 2026, but may cease earlier if the Council establishes general rules on tax advantages for humanitarian demining. The decision aims to speed up demining efforts and improve safety in mine-contaminated areas.
Key Points / Main Content:
Tax Exemption Authorisation:
* Croatia is authorised to exempt from taxation gas oil used in machinery for humanitarian demining.
Scope of Exemption:
* The tax exemption is limited to accredited special-purpose machines designed specifically for clearing mined areas.
* The exemption applies only within the territory of Croatia.
* The exemption applies to all operators involved in humanitarian demining in Croatia.
Duration and Termination:
* The decision is applicable from 20 December 2020 until 19 December 2026.
* The decision will cease to apply if the Council establishes general rules on tax advantages for humanitarian demining.
Impact Analysis:
Republic of Croatia:
* Impact: Authorised to apply a tax exemption, potentially speeding up demining efforts and improving safety.
* Action Required: Implement the tax exemption for eligible machinery and operators, monitor its application, and be prepared to adapt if the Council establishes general rules on tax advantages for humanitarian demining.
Operators involved in humanitarian demining in Croatia:
* Impact: Benefit from tax exemption on gas oil used in eligible machinery, potentially reducing operational costs.
* Action Required: Ensure machinery is accredited and meets the special-purpose design requirements for clearing mined areas to qualify for the tax exemption.
European Council:
* Impact: May need to establish general rules on tax advantages for humanitarian demining
* Action Required: Monitor the need to establish general rules on tax advantages for humanitarian demining.
Key Entities Referenced
Republic of Croatia: Country authorized to apply a tax exemption to gas oil used in humanitarian demining.
Council Directive 2003/96/EC: Council Directive restructuring the Community framework for the taxation of energy products and electricity.
European Union: The political and economic union to which the directive and decision apply.
European Commission: The executive branch of the European Union, which proposed the decision.
Council Implementing Decision 2014/921/EU: Council Implementing Decision authorizing Croatia to apply a tax exemption to gas oil used in humanitarian demining, which the current decision extends.
Brussels: City where the decision was done.
J. BORRELL FONTELLES: The President of the Council.
Treaty on the Functioning of the European Union: Treaty on which the decision is based.
17.5.2021 E N O f f i c i a l J o u r n a l o f t h e E u r o p e a n Union L 173/1
II
(Non-legislative acts)
DECISIONS
COUNCIL IMPLEMENTING DECISION (EU) 2021/786
of 10 May 2021
authorising the Republic of Croatia to apply a tax exemption to gas oil used to operate machinery in
humanitarian demining in accordance with Article 19 of Directive 2003/96/EC
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the
taxation of energy products and electricity(1), and in particular Article 19 thereof,
Having regard to the proposal from the European Commission,
Whereas:
(1) By Council Implementing Decision 2014/921/EU(2), Croatia was authorised to apply a tax exemption to gas oil used
to operate specialised machinery in humanitarian demining in accordance with Article 19 of Directive 2003/96/EC
(the ‘tax exemption’) until 19 December 2020.
(2) On 18 September 2020, Croatia requested authorisation to continue to apply the tax exemption for the period from
20 December 2020 until 19 December 2026. At the request of the Commission, Croatia provided additional
supporting information on 13 Octoberand 6 November 2020.
(3) With the tax exemption it intends to continue to apply, Croatia aims to speed up the demining of the remaining
mine-contaminated areas in various regions. The tax exemption would have immediate positive effects on human
life and health in those regions.
(4) The tax exemption should be limited to accredited special-purpose machines designed and built specifically for
clearing mined areas.
(5) The tax exemption should be limited to mine-contaminated areas in the territory of Croatia.
(6) The tax exemption should apply to all operators involved in humanitarian demining in Croatia, thus no economic
advantage will be given to any particular operator involved.
(7) Consequently, the tax exemption is acceptable from the point of view of the proper functioning of the internal
market and of the need to ensure fair competition and it is compatible with the Union’s health, environment, energy
and transport policies.
(1) OJ L 283, 31.10.2003, p. 51.
(2) Council Implementing Decision 2014/921/EU of 16 December 2014 authorising Croatia to apply a tax exemption to gas oil used to
operate machinery in humanitarian demining in accordance with Article 19 of Directive 2003/96/EC (OJ L 363, 18.12.2014, p. 150).L 173/2 E N O f f i c i a l J o u r n a l o f t h e E u r o p e a n Union 17.5.2021
(8) Each authorisation granted under Article 19(1) of Directive 2003/96/EC is to be strictly limited in time. In order to
provide economic operators concerned with a sufficient degree of certainty and enough time to conclude the
process of demining of the contaminated areas, it is appropriate to grant the authorisation for a period of six years.
(9) In order to provide legal certainty to economic operators involved in demining operations and to avoid a potential
increase in the administrative burden resulting from changes to the applicable tax rate, Croatia should be able to
apply the tax exemption without interruption. The authorisation requested should therefore be granted with effect
from 20 December 2020, in order to follow seamlessly on from the prior arrangements under Implementing
Decision 2014/921/EU.
(10) This Decision is without prejudice to the application of Union rules regarding State aid,
HAS ADOPTED THIS DECISION:
Article 1
Croatia is authorised to exempt from taxation gas oil used to operate machinery in humanitarian demining in its territory.
The tax exemption shall be limited to accredited special-purpose machines designed and built specifically for clearing
mined areas.
Article 2
This Decision shall apply from 20 December 2020until 19 December 2026.
However, should the Council, acting on the basis of Article 113 or any other relevant provision of the Treaty, provide for
general rules on tax advantages for humanitarian demining, this Decision shall cease to apply on the day on which those
general rules become applicable.
Article 3
This Decision is addressed to the Republic of Croatia.
Done at Brussels, 10 May 2021.
For the Council
The President
J. BORRELL FONTELLES