Title XI: Obligations of taxable persons and certain non-taxable persons

Chapter 1: Obligation to pay

Section 1: Persons liable for payment of VAT to the tax authorities

Article 199

1. Member States may provide that the person liable for payment of VAT is the taxable person to whom any of the following supplies are made:

1. the supply of construction work, including repair, cleaning, maintenance, alteration and demolition services in relation to immovable property, as well as the handing over of construction works regarded as a supply of goods pursuant to Article 14(3);

2. the supply of staff engaged in activities covered by point (a);

3. the supply of immovable property, as referred to in Article 135(1)(j) and (k), where the supplier has opted for taxation of the supply pursuant to Article 137;

4. the supply of used material, used material which cannot be re-used in the same state, scrap, industrial and non industrial waste, recyclable waste, part processed waste and certain goods and services, as listed in Annex VI;

5. the supply of goods provided as security by one taxable person to another in execution of that security;

6. the supply of goods following the cession of a reservation of ownership to an assignee and the exercising of this right by the assignee;

7. the supply of immovable property sold by a judgment debtor in a compulsory sale procedure.

2. When applying the option provided for in paragraph 1, Member States may specify the supplies of goods and services covered, and the categories of suppliers or recipients to whom these measures may apply.

3. For the purposes of paragraph 1, Member States may take the following measures:

1. provide that a taxable person who also carries out activities or transactions that are not considered to be taxable supplies of goods or services in accordance with Article 2 shall be regarded as a taxable person in respect of supplies received as referred to in paragraph 1 of this Article;

2. provide that a non-taxable body governed by public law, shall be regarded as a taxable person in respect of supplies received as referred to in points (e), (f) and (g) of paragraph 1.

4. Member States shall inform the VAT Committee of national legislative measures adopted pursuant to paragraph 1 in so far as these are not measures authorised by the Council prior to 13 August 2006 in accordance with Article 27(1) to (4) of Directive 77/388/EEC, and which are continued under paragraph 1 of this Article.