The Riigikogu supported with 79 votes in favour the proposal from the Chancellor of Justice to bring the Value Added Tax Act into conformity with the Constitution.
The Chancellor of Justice Ülle Madise drew the attention of the Riigikogu to the fact that input value added tax is permitted to be deduced in full from an automobile used for the provision of taxi service and from goods acquired and services received therefor, but a restriction on deduction applies in the case of a small bus used for the carriage of passengers for a fee on the basis of a Community licence.
The Chancellor of Justice said that the commencement of the constitutional review proceedings had been motivated by an address from an undertaking that provides the service of carriage by bus for a fee with a small bus that has nine seats. Input value added tax on the small bus of the undertaking is permitted to be deduced from the calculated value added tax to the extent of 50 per cent.
The Chancellor of Justice adopted the position that this undertaking is right. “There is no logical, fair or weighty justification for such different treatment which means that this solution is in conflict with the Constitution. Besides, we found that it is also in conflict with European Union law,” the Chancellor of Justice said.
The Chancellor of Justice noted that this case does not cover the issue of Taxify and Uber, and the Tax and Customs Board and the Ministry of Finance are dealing with these issues.
The Chairman of the Constitutional Committee Kalle Laanet and the Chairman of the Finance Committee Remo Holsmer who made reports gave an overview of the discussions that had been held in the Committees and said that the Committees had supported the proposal of the Chancellor of Justice by consensus.
The Board of the Riigikogu instructed the Finance Committee to introduce a relevant Bill.
Video recordings of the sittings of the Riigikogu can be viewed at https://www.youtube.com/riigikogu
(NB! The recording will be uploaded with a delay.)
Your feedback is important. Please share it with us!