20.2.2008 EN Official Journal of the European Union L 44/23 COUNCIL DIRECTIVE 2008/9/EC of 12 February 2008 laying down detailed rules for the refund of value added tax, provided for in Directive 2006/112/EC, to taxable persons not established in the Member State of refund but established in another Member State THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 93 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament (1), Having regard to the opinion of the European Economic and Social Committee (2), Whereas: (1) Considerable problems are posed, both for the administrative authorities of Member States and for businesses, by the implementing rules laid down by Council Directive 79/1072/EEC of 6 December 1979 on the harmonisation of the laws of the Member States relating to turnover taxes — Arrangements for the refund of value added tax to taxable persons not established in the territory of the country (3). (2) The arrangements laid down in that Directive should be amended in respect of the period within which decisions concerning applications for refund are notified to businesses. At the same time, it should be laid down that businesses too must provide responses within specified periods. In addition, the procedure should be simplified and modernised by allowing for the use of modern technologies. (3) The new procedure should enhance the position of businesses since the Member States shall be liable to pay interest if the refund is made late and the right of appeal by businesses will be strengthened. (4) For clarity and better reading purposes, the provision concerning the application of Directive 79/1072/EEC, previously contained in Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (4), should now be integrated in this Directive. (5) Since the objectives of this Directive cannot be sufficiently achieved by the Member States and can therefore, by reason of the scale of the action, be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve those objectives. (6) In accordance with point 34 of the Interinstitutional Agreement on better law-making (5), Member States are encouraged to draw up, for themselves and in the interests of the Community, their own tables illustrating, as far as possible, the correlation between this Directive and the transposition measures, and to make them public. (7) In the interest of clarity, Directive 79/1072/EEC should therefore be repealed, subject to the necessary transitional measures with respect to refund applications introduced before 1 January 2010, HAS ADOPTED THIS DIRECTIVE: Article 1 This Directive lays down the detailed rules for the refund of value added tax (VAT), provided for in Article 170 of Directive 2006/112/EC, to taxable persons not established in the Member State of refund, who meet the conditions laid down in Article 3. Article 2 For the purposes of this Directive, the following definitions shall apply: 1. ‘taxable person not established in the Member State of refund’ means a taxable person within the meaning of Article 9(1) of Directive 2006/112/EC who is not established in the Member State of refund but established in the territory of another Member State; 2. ‘Member State of refund’ means the Member State in which the VAT was charged to the taxable person not established in the Member State of refund in respect of goods or services supplied to him by other taxable persons in that Member State or in respect of the importation of goods into that Member State; 3. ‘refund period’ means the period mentioned in Article 16 covered by the refund application; 4. ‘refund application’ means the application for refund of VAT charged in the Member State of refund to the taxable person not established in the Member State of refund in respect of goods or services supplied to him by other taxable persons in that Member State or in respect of the importation of goods into that Member State; 5. ‘applicant’ means the taxable person not established in the Member State of refund making the refund application. Article 3 This Directive shall apply to any taxable person not established in the Member State of refund who meets the following conditions: (a) during the refund period, he has not had in the Member State of refund, the seat of his economic activity, or a fixed establishment from which business transactions were effected, or, if no such seat or fixed establishment existed, his domicile or normal place of residence; (b) during the refund period, he has not supplied any goods or services deemed to have been supplied in the Member State of refund, with the exception of the following transactions: (i) the supply of transport services and services ancillary thereto, exempted pursuant to Articles 144, 146, 148, 149, 151, 153, 159 or 160 of Directive 2006/112/EC; (ii) the supply of goods and services to a person who is liable for payment of VAT in accordance with Articles 194 to 197 and Article 199 of Directive 2006/112/EC. Article 4 This Directive shall not apply to: (a) amounts of VAT which, according to the legislation of the Member State of refund, have been incorrectly invoiced; (b) amounts of VAT which have been invoiced in respect of supplies of goods the supply of which is, or may be, exempt under Article 138 or Article 146(1)(b) of Directive 2006/112/EC. Article 5 Each Member State shall refund to any taxable person not established in the Member State of refund any VAT charged in respect of goods or services supplied to him by other taxable persons in that Member State or in respect of the importation of goods into that Member State, insofar as such goods and services are used for the purposes of the following transactions: (a) transactions referred to in Article 169(a) and (b) of Directive 2006/112/EC; (b) transactions to a person who is liable for payment of VAT in accordance with Articles 194 to 197 and Article 199 of Directive 2006/112/EC as applied in the Member State of refund. Without prejudice to Article 6, for the purposes of this Directive, entitlement to an input tax refund shall be determined pursuant to Directive 2006/112/EC as applied in the Member State of refund. Article 6 To be eligible for a refund in the Member State of refund, a taxable person not established in the Member State of refund has to carry out transactions giving rise to a right of deduction in the Member State of establishment. When a taxable person not established in the Member State of refund carries out in the Member State in which he is established both transactions giving rise to a right of deduction and transactions not giving rise to a right of deduction in that Member State, only such proportion of the VAT which is refundable in accordance with Article 5 may be refunded by the Member State of refund as is attributable to the former transactions in accordance with Article 173 of Directive 2006/112/EC as applied by the Member State of establishment. Article 7 To obtain a refund of VAT in the Member State of refund, the taxable person not established in the Member State of refund shall address an electronic refund application to that Member State and submit it to the Member State in which he is established via the electronic portal set up by that Member State. Article 8 1. The refund application shall contain the following information: (a) the applicant's name and full address; (b) an address for contact by electronic means; (c) a description of the applicant's business activity for which the goods and services are acquired; (d) the refund period covered by the application; (e) a declaration by the applicant that he has supplied no goods and services deemed to have been supplied in the Member State of refund during the refund period, with the exception of transactions referred to in points (i) and (ii) of Article 3(b); (f) the applicant's VAT identification number or tax reference number; (g) bank account details including IBAN and BIC codes. 2. In addition to the information specified in paragraph 1, the refund application shall set out, for each Member State of refund and for each invoice or importation document, the following details: (a) name and full address of the supplier; (b) except in the case of importation, the VAT identification number or tax reference number of the supplier, as allocated by the Member State of refund in accordance with the provisions of Articles 239 and 240 of Directive 2006/112/EC; (c) except in the case of importation, the prefix of the Member State of refund in accordance with Article 215 of Directive 2006/112/EC; (d) date and number of the invoice or importation document; (e) taxable amount and amount of VAT expressed in the currency of the Member State of refund; (f) the amount of deductible VAT calculated in accordance with Article 5 and the second paragraph of Article 6 expressed in the currency of the Member State of refund; (g) where applicable, the deductible proportion calculated in accordance with Article 6, expressed as a percentage; (h) nature of the goods and services acquired, described according to the codes in Article 9. Article 9 1. In the refund application, the nature of the goods and services acquired shall be described by the following codes: 1 = fuel; 2 = hiring of means of transport; 3 = expenditure relating to means of transport (other than the goods and services referred to under codes 1 and 2); 4 = road tolls and road user charge; 5 = travel expenses, such as taxi fares, public transport fares; 6 = accommodation; 7 = food, drink and restaurant services; 8 = admissions to fairs and exhibitions; 9 = expenditure on luxuries, amusements and entertainment; 10 = other. If code 10 is used, the nature of the goods and services supplied shall be indicated. 2. The Member State of refund may require the applicant to provide additional electronic coded information as regards each code set out in paragraph 1 to the extent that such information is necessary because of any restrictions on the right of deduction under Directive 2006/112/EC, as applicable in the Member State of refund or for the implementation of a relevant derogation received by the Member State of refund under Articles 395 or 396 of that Directive. Article 10 Without prejudice to requests for information under Article 20, the Member State of refund may require the applicant to submit by electronic means a copy of the invoice or importation document with the refund application where the taxable amount on an invoice or importation document is EUR 1 000 or more or the equivalent in national currency. Where the invoice concerns fuel, the threshold is EUR 250 or the equivalent in national currency. Article 11 The Member State of refund may require the applicant to provide a description of his business activity by using the harmonised codes determined in accordance with the second subparagraph of Article 34a(3) of Council Regulation (EC) No 1798/2003 (6). Article 12 The Member State of refund may specify which language or languages shall be used by the applicant for the provision of information in the refund application or of possible additional information. Article 13 If subsequent to the submission of the refund application the deductible proportion is adjusted pursuant to Article 175 of Directive 2006/112/EC, the applicant shall make a correction to the amount applied for or already refunded. The correction shall be made in a refund application during the calendar year following the refund period in question or, if the applicant makes no refund applications during that calendar year, by submitting a separate declaration via the electronic portal established by the Member State of establishment. Article 14 1. The refund application shall relate to the following: (a) the purchase of goods or services which was invoiced during the refund period, provided that the VAT became chargeable before or at the time of the invoicing, or in respect of which the VAT became chargeable during the refund period, provided that the purchase was invoiced before the tax became chargeable; (b) the importation of goods during the refund period. 2. In addition to the transactions referred to in paragraph 1, the refund application may relate to invoices or import documents not covered by previous refund applications and concerning transactions completed during the calendar year in question. Article 15 1. The refund application shall be submitted to the Member State of establishment at the latest on 30 September of the calendar year following the refund period. The application shall be considered submitted only if the applicant has filled in all the information required under Articles 8, 9 and 11. 2. The Member State of establishment shall send the applicant an electronic confirmation of receipt without delay. Article 16 The refund period shall not be more than one calendar year or less than three calendar months. Refund applications may, however, relate to a period of less than three months where the period represents the remainder of a calendar year. Article 17 If the refund application relates to a refund period of less than one calendar year but not less than three months, the amount of VAT for which a refund is applied for may not be less than EUR 400 or the equivalent in national currency. If the refund application relates to a refund period of a calendar year or the remainder of a calendar year, the amount of VAT may not be less than EUR 50 or the equivalent in national currency. Article 18 1. The Member State of establishment shall not forward the application to the Member State of refund where, during the refund period, any of the following circumstances apply to the applicant in the Member State of establishment: (a) he is not a taxable person for VAT purposes; (b) he carries out only supplies of goods or of services which are exempt without deductibility of the VAT paid at the preceding stage pursuant to Articles 132, 135, 136, 371, Articles 374 to 377, Article 378(2)(a), Article 379(2) or Articles 380 to 390 of Directive 2006/112/EC or provisions providing for identical exemptions contained in the 2005 Act of Accession; (c) he is covered by the exemption for small enterprises provided for in Articles 284, 285, 286 and 287 of Directive 2006/112/EC; (d) he is covered by the common flat-rate scheme for farmers provided for in Articles 296 to 305 of Directive 2006/112/EC. 2. The Member State of establishment shall notify the applicant by electronic means of the decision it has taken pursuant to paragraph 1. Article 19 1. The Member State of refund shall notify the applicant without delay, by electronic means, of the date on which it received the application. 2. The Member State of refund shall notify the applicant of its decision to approve or refuse the refund application within four months of its receipt by that Member State. Article 20 1. Where the Member State of refund considers that it does not have all the relevant information on which to make a decision in respect of the whole or part of the refund application, it may request, by electronic means, additional information, in particular from the applicant or from the competent authorities of the Member State of establishment, within the four-month period referred to in Article 19(2). Where the additional information is requested from someone other than the applicant or a competent authority of a Member State, the request shall be made by electronic means only if such means are available to the recipient of the request. If necessary, the Member State of refund may request further additional information. The information requested in accordance with this paragraph may include the submission of the original or a copy of the relevant invoice or import document where the Member State of refund has reasonable doubts regarding the validity or accuracy of a particular claim. In that case, the thresholds mentioned in Article 10 shall not apply. 2. The Member State of refund shall be provided with the information requested under paragraph 1 within one month of the date on which the request reaches the person to whom it is addressed. Article 21 Where the Member State of refund requests additional information, it shall notify the applicant of its decision to approve or refuse the refund application within two months of receiving the requested information or, if it has not received a reply to its request, within two months of expiry of the time limit laid down in Article 20(2). However, the period available for the decision in respect of the whole or part of the refund application shall always be at least six months from the date of receipt of the application by the Member State of refund. Where the Member State of refund requests further additional information, it shall notify the applicant of its decision in respect of the whole or part of the refund application within eight months of receipt of the application by that Member State. Article 22 1. Where the refund application is approved, refunds of the approved amount shall be paid by the Member State of refund at the latest within 10 working days of the expiry of the deadline referred to in Article 19(2) or, where additional or further additional information has been requested, the deadlines referred to in Article 21. 2. The refund shall be paid in the Member State of refund or, at the applicant's request, in any other Member State. In the latter case, any bank charges for the transfer shall be deducted by the Member State of refund from the amount to be paid to the applicant. Article 23 1. Where the refund application is refused in whole or in part, the grounds for refusal shall be notified by the Member State of refund to the applicant together with the decision. 2. Appeals against decisions to refuse a refund application may be made by the applicant to the competent authorities of the Member State of refund in the forms and within the time limits laid down for appeals in the case of refund applications from persons who are established in that Member State. If, under the law of the Member State of refund, failure to take a decision on a refund application within the time limits specified in this Directive is not regarded either as approval or as refusal, any administrative or judicial procedures which are available in that situation to taxable persons established in that Member State shall be equally available to the applicant. If no such procedures are available, failure to take a decision on a refund application within these time limits shall mean that the application is deemed to be rejected. Article 24 1. Where a refund has been obtained in a fraudulent way or otherwise incorrectly, the competent authority in the Member State of refund shall proceed directly to recover the amounts wrongly paid and any penalties and interest imposed in accordance with the procedure applicable in the Member State of refund, without prejudice to the provisions on mutual assistance for the recovery of VAT. 2. Where an administrative penalty or interest has been imposed but has not been paid, the Member State of refund may suspend any further refund to the taxable person concerned up to the unpaid amount. Article 25 The Member State of refund shall take into account as a decrease or increase of the amount of the refund any correction made concerning a previous refund application in accordance with Article 13 or, where a separate declaration is submitted, in the form of separate payment or recovery. Article 26 Interest shall be due to the applicant by the Member State of refund on the amount of the refund to be paid if the refund is paid after the last date of payment pursuant to Article 22(1). If the applicant does not submit the additional or further additional information requested to the Member State of refund within the specified time limit, the first paragraph shall not apply. It shall also not apply until the documents to be submitted electronically pursuant to Article 10 have been received by the Member State of refund. Article 27 1. Interest shall be calculated from the day following the last day for payment of the refund pursuant to Article 22(1) until the day the refund is actually paid. 2. Interest rates shall be equal to the interest rate applicable with respect to refunds of VAT to taxable persons established in the Member State of refund under the national law of that Member State. If no interest is payable under national law in respect of refunds to established taxable persons, the interest payable shall be equal to the interest or equivalent charge which is applied by the Member State of refund in respect of late payments of VAT by taxable persons. Article 28 1. This Directive shall apply to refund applications submitted after 31 December 2009. 2. Directive 79/1072/EEC shall be repealed with effect from 1 January 2010. However, its provisions shall continue to apply to refund applications submitted before 1 January 2010. References to the repealed Directive shall be construed as references to this Directive except for refund applications submitted before 1 January 2010. Article 29 1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive with effect from 1 January 2010. They shall forthwith inform the Commission thereof. When such provisions are adopted by Member States, they shall contain a reference to this Directive or be accompanied by such reference on the occasion of their official publication. The methods of making such reference shall be laid down by Member States. 2. Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive. Article 30 This Directive shall enter into force on the day of its publication in the Official Journal of the European Union. Article 31 This Directive is addressed to the Member States. Done at Brussels, 12 February 2008. For the Council The President A. BAJUK (1) OJ C 285 E, 22.11.2006, p. 122. (2) OJ C 28, 3.2.2006, p. 86. (3) OJ L 331, 27.12.1979, p. 11. Directive as last amended by Directive 2006/98/EC (OJ L 363, 20.12.2006, p. 129). (4) OJ L 347, 11.12.2006, p. 1. Directive as last amended by Directive 2007/75/EC (OJ L 346, 29.12.2007, p. 13). (5) OJ C 321, 31.12.2003, p. 1. (6) OJ L 264, 15.10.2003, p. 1.

Summary: Refund of VAT: taxable persons established in another EU country Refund of VAT: taxable persons established in another EU country SUMMARY OF: Directive 2008/9/EC — rules for the refund of value added tax to taxable persons not established in the EU country of refund but established in another EU country WHAT IS THE AIM OF THE DIRECTIVE? It lays down the detailed rules for the refund of value added tax (VAT), provided for in Directive 2006/112/EC, the EU’s common system of value added tax (VAT), to taxable persons not established in the EU country of refund* but established in another EU country. KEY POINTS The directive applies to any taxable person not established in the EU country of refund (but established in another EU country) who, during the refund period: did not have in that EU country, the seat of his economic activity, a fixed establishment from which business transactions were carried out or, in the absence of such a seat or fixed establishment, his home or normal place of residence; did not supply any goods or services in that EU country, except for certain exempt transport services and the supply of goods and services to a person who is liable to pay VAT. EU countries must refund to any taxable person not established in their country (but established in another EU country) any VAT charged for goods or services supplied to him or her by other taxable persons in that EU country or for goods imported into that country, when used for the purposes of the transactions listed in Directive 2006/112/EC. To be eligible for a refund in the EU country of refund, a taxable person not established in that country must carry out transactions giving rise to a right of deduction in their own EU country. When a taxable person not established in the EU country of refund carries out in his or her own EU country both transactions producing a right of deduction and transactions not producing a right of deduction in that country, the EU country of the refund will only pay the proportion of refundable VAT. Refund application This directive introduces a fully electronic procedure. The taxable person not established in the EU country of refund (but established in another EU country) sends an electronic refund application to the EU country of refund via the electronic portal of his or her own EU country. The refund application relates to the VAT on the purchase of goods or services which was invoiced during the refund period, and the goods imported during the refund period. The refund application must be submitted to the EU country of establishment before 30 September of the calendar year following the refund period. The amount of VAT refund applied for must in principle not be less than €400 (or €50 where certain conditions are met). If the country is late in making the refund payment, the applicant will be entitled to interest on the amount of the refund. The EU country of establishment must send the applicant an electronic confirmation of receipt without delay. FROM WHEN DOES THE DIRECTIVE APPLY? It has applied since 20 February 2008 and had to become law in the EU countries by 1 January 2010. It repeals Directive 79/1072/EEC. BACKGROUND For more information, see: VAT refunds (European Commission). KEY TERMS EU country of refund: the country in which the VAT was charged to the taxable person for goods or services supplied by other taxable persons in that EU country or for the import of goods into that EU country. MAIN DOCUMENT Council Directive 2008/9/EC of 12 February 2008 laying down detailed rules for the refund of value added tax, provided for in Directive 2006/112/EC, to taxable persons not established in the Member State of refund but established in another Member State (OJ L 44, 20.2.2008, pp. 23-28) Successive amendments to Directive 2008/9/EC have been incorporated in the original text. This consolidated version is of documentary value only. RELATED DOCUMENTS Commission Implementing Regulation (EU) No 79/2012 of 31 January 2012 laying down detailed rules for implementing certain provisions of Council Regulation (EU) No 904/2010 concerning administrative cooperation and combating fraud in the field of value added tax (OJ L 29, 1.2.2012, pp. 13-32) Successive amendments to Regulation (EU) No 79/2012 have been incorporated in the original text. This consolidated version is of documentary value only. Council Regulation (EU) No 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax (OJ L 268, 12.10.2010, pp. 1-18) See consolidated version. last update 19.10.2018


21.2.2008 EN Official Journal of the European Union L 46/11 COUNCIL DIRECTIVE 2008/7/EC of 12 February 2008 concerning indirect taxes on the raising of capital THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 93 and 94 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament (1), Having regard to the opinion of the European Economic and Social Committee (2), Whereas: (1) Council Directive 69/335/EEC of 17 July 1969 concerning indirect taxes on the raising of capital (3) has been substantially amended several times (4). Since further amendments are to be made, it should be recast in the interests of clarity. (2) The indirect taxes on the raising of capital, namely the capital duty (the duty chargeable on contributions of capital to companies and firms), the stamp duty on securities, and duty on restructuring operations, regardless of whether those operations involve an increase in capital, give rise to discrimination, double taxation and disparities which interfere with the free movement of capital. The same applies as regards other indirect taxes with the same characteristics as capital duty and the stamp duty on securities. (3) Consequently, it is in the interests of the internal market to harmonise the legislation on indirect taxes on the raising of capital in order to eliminate, as far as possible, factors which may distort conditions of competition or hinder the free movement of capital. (4) The economic effects of capital duty are detrimental to the regrouping and development of undertakings. Such effects are particularly harmful in the present economic situation in which there is a paramount need for priority to be given to stimulating investment. (5) The best solution for attaining these objectives would be to abolish capital duty. (6) However, the losses of revenue which would result from the immediate application of such a measure are unacceptable for Member States which currently apply capital duty. Those Member States should therefore have the opportunity to continue to subject to capital duty all or part of the transactions concerned, it being understood that a single rate of tax must be charged within one and the same Member State. Once a Member State has chosen not to levy capital duty on all or part of the transactions under this Directive, it should not be possible for it to reintroduce such duties. (7) It is inherent in the concept of an internal market that a duty on the raising of capital within the internal market by a company or firm should not be charged more than once. Accordingly, if the Member State to which the taxing right is attributed does not levy capital duty on certain or all transactions covered by this Directive, no other Member State is to exercise a taxing right in respect of those transactions. (8) It is appropriate to maintain strict conditions for situations where Member States continue to levy capital duty, in particular as regards exemptions and reductions. (9) Apart from capital duty, no indirect taxes on the raising of capital should be levied. In particular, no stamp duty should be levied on securities, regardless of the origin of such securities, and regardless of whether they represent a company’s own capital or its loan capital. (10) The list of capital companies set out in Directive 69/335/EEC is incomplete and should therefore be adapted. (11) Since the objectives of this Directive cannot be sufficiently achieved by the Member States and can therefore be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve those objectives. (12) The obligation to transpose this Directive into national law should be confined to those provisions which represent a substantive change as compared with the earlier Directives. The obligation to transpose the provisions which are unchanged arises under the earlier Directives. (13) This Directive should be without prejudice to the obligations of the Member States relating to the time limits for transposition into national law of the Directives set out in Annex II, Part B. (14) In view of the detrimental effects of capital duty, the Commission should report every three years on the operation of this Directive with a view to abolishing this duty, HAS ADOPTED THIS DIRECTIVE: CHAPTER I SUBJECT MATTER AND SCOPE Article 1 Subject matter This Directive regulates the levying of indirect taxes in respect of the following: (a) contributions of capital to capital companies; (b) restructuring operations involving capital companies; (c) the issue of certain securities and debentures. Article 2 Capital company 1. For the purposes of this Directive ‘capital company’ means: (a) any company which takes one of the forms listed in Annex I; (b) any company, firm, association or legal person the shares in whose capital or assets can be dealt in on a stock exchange; (c) any company, firm, association or legal person operating for profit, whose members have the right to dispose of their shares to third parties without prior authorisation and are only responsible for the debts of the company, firm, association or legal person to the extent of their shares. 2. For the purposes of this Directive, any other company, firm, association or legal person operating for profit shall be deemed to be a capital company. Article 3 Contributions of capital For the purposes of this Directive and subject to Article 4, the following transactions shall be considered to be ‘contributions of capital’: (a) the formation of a capital company; (b) the conversion into a capital company of a company, firm, association or legal person which is not a capital company; (c) an increase in the capital of a capital company by contribution of assets of any kind; (d) an increase in the assets of a capital company by contribution of assets of any kind, in consideration not of shares in the capital or assets of the company, but of rights of the same kind as those of members, such as voting rights, a share in the profits or a share in the surplus upon liquidation; (e) the transfer from a third country to a Member State of the centre of effective management of a capital company whose registered office is in a third country; (f) the transfer from a third country to a Member State of the registered office of a capital company whose centre of effective management is in a third country; (g) an increase in the capital of a capital company by capitalisation of profits or of permanent or temporary reserves; (h) an increase in the assets of a capital company through the provision of services by a member which does not entail an increase in the company’s capital, but which does result in a variation in the rights in the company or which may increase the value of the company’s shares; (i) a loan taken up by a capital company, if the creditor is entitled to a share in the profits of the company; (j) a loan taken up by a capital company with a member or a member’s spouse or child, or a loan taken up with a third party, if it is guaranteed by a member, on condition that such loans have the same function as an increase in the company’s capital. Article 4 Restructuring operations 1. For the purposes of this Directive, the following restructuring operations shall not be considered to be contributions of capital: (a) the transfer by one or more capital companies of all their assets and liabilities, or one or more branches of activity to one or more capital companies which are in the process of being formed or which are already in existence, provided that the consideration for the transfer consists at least in part of securities representing the capital of the acquiring company; (b) the acquisition, by a capital company which is in the process of being formed or which is already in existence, of shares representing a majority of the voting rights of another capital company, provided that the consideration for the shares acquired consists at least in part of securities representing the capital of the former company. Where the majority of the voting rights is reached by means of two or more transactions, only the transaction whereby the majority of voting rights is reached and any subsequent transactions shall be regarded as restructuring operations. 2. Restructuring operations shall also include the transfer to a capital company of all assets and liabilities of another capital company which is wholly owned by the former company. CHAPTER II GENERAL PROVISIONS Article 5 Transactions not subject to indirect tax 1. Member States shall not subject capital companies to any form of indirect tax whatsoever in respect of the following: (a) contributions of capital; (b) loans, or the provision of services, occurring as part of contributions of capital; (c) registration or any other formality required before the commencement of business to which a capital company may be subject by reason of its legal form; (d) alteration of the constituent instrument or regulations of a capital company, and in particular the following: (i) the conversion of a capital company into a different type of capital company; (ii) the transfer from a Member State to another Member State of the centre of effective management or of the registered office of a capital company; (iii) a change in the objects of a capital company; (iv) the extension of the period of existence of a capital company; (e) the restructuring operations referred to in Article 4. 2. Member States shall not subject the following to any form of indirect tax whatsoever: (a) the creation, issue, admission to quotation on a stock exchange, making available on the market or dealing in stocks, shares or other securities of the same type, or of the certificates representing such securities, by whomsoever issued; (b) loans, including government bonds, raised by the issue of debentures or other negotiable securities, by whomsoever issued, or any formalities relating thereto, or the creation, issue, admission to quotation on a stock exchange, making available on the market or dealing in such debentures or other negotiable securities. Article 6 Duties and value added tax 1. Notwithstanding Article 5, Member States may charge the following duties and taxes: (a) duties on the transfer of securities, whether charged at a flat rate or not; (b) transfer duties, including land registration taxes, on the transfer, to a capital company, of businesses or immovable property situated within their territory; (c) transfer duties on assets of any kind transferred to a capital company, insofar as such property is transferred for a consideration other than shares in the company; (d) duties on the creation, registration or discharge of mortgages or other charges on land or other property; (e) duties in the form of fees or dues; (f) value added tax. 2. The amount charged by way of the duties and taxes listed in points (b) to (e) of paragraph 1 shall not vary according to whether or not the centre of effective management or the registered office of the capital company is situated within the territory of the Member State charging the duties or taxes. Those amounts may not exceed those of duties or taxes applicable to like transactions which take place within the Member State charging them. CHAPTER III SPECIAL PROVISIONS Article 7 Levying of capital duty in certain Member States 1. Notwithstanding Article 5(1)(a), a Member State which as at 1 January 2006 charged a duty on contributions of capital to capital companies, hereinafter ‘capital duty’, may continue to do so provided that it complies with Articles 8 to 14. 2. If, at any time after 1 January 2006, a Member State discontinues the charging of capital duty, it may not reintroduce it. 3. If, at any time after 1 January 2006, a Member State discontinues the charging of capital duty on the contributions of capital referred to in Article 3(g) to (j), it may not reintroduce capital duty on such contributions of capital, notwithstanding Article 10(2). 4. If, at any time after 1 January 2006, a Member State discontinues the charging of capital duty on the supplying of fixed or working capital to a branch, it may not reintroduce duty on the contributions of capital concerned, notwithstanding Article 10(4). 5. If, at any time after 1 January 2006, a Member State allows exemptions under Article 13, it may not subsequently charge capital duty on the contributions of capital concerned. Article 8 Rate of capital duty 1. Capital duty shall be charged at a single rate. 2. The rate of capital duty applied by a Member State may not exceed the rate applied by that Member State on 1 January 2006. Where, after that date, the Member State reduces the rate applied, it may not reintroduce a higher rate. 3. The rate of capital duty may not in any event exceed 1 %. Article 9 Exclusion of certain entities from the scope of application Member States may for the purposes of levying capital duty choose not to regard as capital companies the entities referred to in Article 2(2). Article 10 Transactions subject to capital duty and distribution of taxing rights 1. Where, pursuant to Article 7(1), a Member State continues to charge capital duty, it shall subject to capital duty the contributions of capital referred to in Article 3(a) to (d), if the centre of effective management of the capital company is situated in that Member State at the time when the contribution of capital is made. It shall also subject to capital duty the contributions of capital referred to in Article 3(e) and (f). 2. Where a Member State continues to charge capital duty, it may do so on the contributions of capital referred to in Article 3(g) to (j), if the centre of effective management of the capital company is situated in that Member State at the time when the contribution of capital is made. 3. Where the centre of effective management of a capital company is situated in a third country and its registered office is situated in a Member State which continues to charge capital duty, contributions of capital shall be subject to capital duty in that Member State. 4. Where the registered office and the centre of effective management of a capital company are situated in a third country, the supply of fixed or working capital to a branch situated in a Member State which continues to charge capital duty may be subject to capital duty in that Member State. Article 11 Basis of assessment for capital duty 1. In the case of contributions of capital as referred to in Article 3(a), (c) and (d), the basis of assessment for capital duty shall be the actual value of assets of any kind contributed or to be contributed by the members, after the deduction of liabilities assumed and of expenses borne by the company as a result of each contribution. The charging of capital duty may be postponed until the contributions have been effected. 2. In the case of contributions of capital as referred to in Article 3(b), (e) and (f), the basis of assessment for capital duty shall be the actual value of the assets of any kind belonging to the company at the time of the conversion or transfer, after the deduction of liabilities and expenses for which the company is responsible at that time. 3. In the case of contributions of capital as referred to in Article 3(g), the basis of assessment for capital duty shall be the nominal amount of the increase. 4. In the case of contributions of capital as referred to in Article 3(h), the basis of assessment for capital duty shall be the actual value of the services provided, after deduction of the liabilities assumed and the expenses borne by the company as a result of the provision of such services. 5. In the case of contributions of capital as referred to in Article 3(i) and (j), the basis of assessment for capital duty shall be the nominal amount of the loan taken up. 6. In the cases referred to in paragraphs 1 and 2, the actual value of the shares in the company allotted or belonging to each member may be used as the basis of assessment for capital duty, except where contributions are made only in cash. The amount on which duty is charged shall in no circumstances be less than the nominal amount of the shares in the company allotted or belonging to each member. Article 12 Exclusion from the basis of assessment for capital duty 1. In the case of an increase in capital, the basis of assessment for capital duty shall not include the following: (a) the amount of the assets belonging to the capital company which are allocated to the increase in capital and which have already been subjected to capital duty; (b) the amount of the loans taken up by the capital company which are converted into shares in the company and which have already been subjected to capital duty. 2. A Member State may exclude from the basis of assessment for capital duty the amount of the capital contributed by a member with unlimited liability for the obligations of a capital company as well as the share of such a member in the company’s assets. Where a Member State exercises that power, any transaction as a result of which the liability of a member is limited to his share in the company’s capital, in particular when the limitation of liability results from the conversion of a capital company into a different type of capital company, shall be subject to capital duty. Capital duty shall be charged in all such cases on the value of the share in the company’s assets belonging to members with unlimited liability for the company’s obligations. 3. In the case of a contribution of capital as referred to in Article 3(c), following a reduction in the company’s capital as a result of losses sustained, that part of the contribution of capital which corresponds to the reduction in capital may be excluded from the basis of assessment, provided that the contribution of capital occurs within four years of the reduction in capital. Article 13 Exemption of contributions of capital to certain capital companies Member States may exempt from capital duty contributions of capital made to the following: (a) capital companies which supply public services, such as public transport undertakings, port authorities or undertakings supplying water, gas or electricity, in cases where the State or regional or local authorities own at least half of the company’s capital; (b) capital companies which, in accordance with their regulations and in fact, pursue exclusively and directly cultural, social, relief or educational objectives. Member States which exempt such contributions of capital from capital duty shall also apply the exemption to the supply of fixed or working capital to a branch within its territory as referred to in Article 10(4). Article 14 Derogation procedure Certain types of contributions of capital or of capital companies may be the subject of exemptions or reductions in rates in order to achieve fairness in taxation, or for social considerations, or to enable a Member State to deal with special situations. The Member State which proposes to take such a measure shall refer the matter to the Commission in good time, having regard to the application of Article 97 of the Treaty. CHAPTER IV FINAL PROVISIONS Article 15 Transposition 1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with Articles 3, 4, 5, 7, 8, 12, 13 and 14 by 31 December 2008 at the latest. They shall forthwith communicate to the Commission the texts of those provisions and a correlation table between those provisions and this Directive. When they are adopted by Member States, these measures shall contain a reference to this Directive or shall be accompanied by such reference on the occasion of their official publication. They shall also include a statement that references in existing laws, regulations and administrative provisions to the directives repealed by this Directive shall be construed as references to this Directive. The methods of making such reference and how that statement is to be formulated shall be laid down by Member States. 2. Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive. Article 16 Repeal Directive 69/355/EEC, as amended by the Directives listed in Part A of Annex II, is repealed with effect from 1 January 2009, without prejudice to the obligations of the Member States relating to the time limits for transposition into national law of the Directives set out in Part B of Annex II. References to the repealed Directive shall be construed as references to this Directive and shall be read in accordance with the correlation table in Annex III. Article 17 Review The Commission shall report to the Council every three years on the operation of this Directive notably with the view to abolish capital duty. In order to assist the Commission with the review, Member States shall provide the Commission with information in respect of the revenue from capital duty. Article 18 Entry into force This Directive shall enter into force on the 20th day following its publication in the Official Journal of the European Union. Articles 1, 2, 6, 9, 10 and 11 shall apply from 1 January 2009. Article 19 Addressees This Directive is addressed to the Member States. Done at Brussels, 12 February 2008. For the Council The President A. BAJUK (1) Opinion of the European Parliament of 12 December 2007 (not yet published in the Official Journal). (2) OJ C 126, 7.6.2007, p. 6. (3) OJ L 249, 3.10.1969, p. 25. Directive as last amended by Directive 2006/98/EC (OJ L 363, 20.12.2006, p. 129). (4) See Annex II, Part A. ANNEX I LIST OF COMPANIES REFERRED TO IN ARTICLE 2(1)(A) (1) Companies incorporated under Council Regulation (EC) No 2157/2001 of 8 October 2001 on the Statute for a European company (SE) (1) (2) companies under Belgian law known as: (i) société anonyme/naamloze vennootschap (ii) société en commandite par actions/commanditaire vennootschap op aandelen (iii) société privée à responsabilité limitée/besloten vennootschap met beperkte aansprakelijkheid (3) companies under Bulgarian law known as: (i) ‘Акционерно дружество’ (ii) ‘Командитно дружество с акции’ (iii) ‘Дружество с ограничена отговорност’ (4) companies under Czech law known as: (i) akciová společnost (ii) komanditní společnost (iii) společnost s ručením omezeným (5) companies under Danish law known as: (i) aktieselskab (ii) kommandit-aktieselskab (6) companies under German law known as: (i) Aktiengesellschaft (ii) Kommanditgesellschaft auf Aktien (iii) Gesellschaft mit beschränkter Haftung (7) companies under Estonian law known as: (i) täisühing (ii) usaldusühing (iii) osaühing (iv) aktsiaselts (v) tulundusühistu (8) companies under Irish law known as: companies incorporated with limited liability (9) companies under Greek law known as: (i) Ανώνυμος Εταιρία (ii) Ετερόρρυθμος κατά μετοχάς Εταιρία (iii) Εταιρία Περιωρισμένης Ευθύνης (10) companies under Spanish law known as: (i) sociedad anónima (ii) sociedad comanditaria por acciones (iii) sociedad de responsabilidad limitada (11) companies under French law known as: (i) société anonyme (ii) société en commandite par actions (iii) société à responsabilité limitée (12) companies under Italian law known as: (i) società per azioni (ii) società in accomandita per azioni (iii) società a responsabilità limitata (13) companies under Cypriot law known as: εταιρείες περιορισμένης ευθύνης (14) companies under Latvian law known as: kapitālsabiedrība (15) companies under Lithuanian law known as: (i) akcinė bendrovė (ii) uždaroji akcinė bendrovė (16) companies under Luxembourg law known as: (i) société anonyme (ii) société en commandite par actions (iii) société à responsabilité limitée (17) companies under Hungarian law known as: (i) részvénytársaság (ii) korlátolt felelősségű társaság (18) companies under Maltese law known as: (i) Kumpaniji ta’ Responsabilità Limitata (ii) Soċjetajiet in akkomandita li l-kapital tagħhom jkun maqsum f’azzjonijiet (19) companies under Dutch law known as: (i) naamloze vennootschap (ii) besloten vennootschap met beperkte aansprakelijkheid (iii) open commanditaire vennootschap (20) companies under Austrian law known as: (i) Aktiengesellschaft (ii) Gesellschaft mit beschränkter Haftung (21) companies under Polish law known as: (i) spółka akcyjna (ii) spółka z ograniczoną odpowiedzialnością (22) companies under Portuguese law known as: (i) sociedade anónima (ii) sociedade em comandita por acções (iii) sociedade por quotas (23) companies under Romanian law known as: (i) ‘societăți în nume colectiv’ (ii) ‘societăți în comandită simplă’ (iii) ‘societăți pe acțiuni’ (iv) ‘societăți în comandită pe acțiuni’ (v) ‘societăți cu răspundere limitată’ (24) companies under Slovenian law known as: (i) delniška družba (ii) komanditna delniška družba (iii) družba z omejeno odgovornostjo (25) companies under Slovak law known as: (i) akciová spoločnosť (ii) poločnosť s ručením obmedzeným (iii) komanditná spoločnosť (26) companies under Finnish law known as: (i) osakeyhtiö – aktiebolag (ii) osuuskunta – andelslag (iii) säästöpankki – sparbank (iv) vakuutusyhtiö – försäkringsbolag (27) companies under Swedish law known as: (i) aktiebolag (ii) försäkringsaktiebolag (28) companies under the law of the United Kingdom known as: companies incorporated with limited liability. (1) OJ L 294, 10.11.2001, p. 1. Regulation as last amended by Regulation (EC) No 1791/2006 (OJ L 363, 20.12.2006, p. 1). ANNEX II PART A Repealed Directive with list of its successive amendments (referred to in Article 16(1)) Council Directive 69/335/EEC (OJ L 249, 3.10.1969, p. 25). Point VI.1 of Annex I to 1972 Act of Accession (OJ L 73, 27.3.1972, p. 93). Council Directive 73/79/EEC (OJ L 103, 18.4.1973, p. 13). Council Directive 73/80/EEC (OJ L 103, 18.4.1973, p. 15). Council Directive 74/553/EEC (OJ L 303, 13.11.1974, p. 9). Point VI.1 of Annex I to 1979 Act of Accession (OJ L 291, 19.11.1979, p. 95). Council Directive 85/303/EEC (OJ L 156, 15.6.1985, p. 23). Point V.1 of Annex I to 1985 Act of Accession (OJ L 302, 15.11.1985, p. 167). Point XI.B.I.1 of Annex I to 1994 Act of Accession (OJ C 241, 29.8.1994, p. 196). Point 9.1 of Annex II to 2003 Act of Accession (OJ L 236, 23.9.2003, p. 555). PART B List of time limits for transposition into national law (referred to in Article 16(1)) Directive Time-limits for transposition Council Directive 69/335/EEC 1 January 1972 Council Directive 73/79/EEC — Council Directive 73/80/EEC — Council Directive 74/553/EEC — Council Directive 85/303/EEC 1 January 1986 ANNEX III Correlation Table Directive 69/335/EEC This Directive Article 1 Article 7 — Article 1 Article 2(1) Article 10(1), first subparagraph, and Article 10(2) Article 2(2) Article 10(3) Article 2(3) Article 10(4) Article 3(1), introductory words Article 2(1), introductory words Article 3(1)(a) Article 2(1)(a) and Annex I Article 3(1)(b) Article 2(1)(b) Article 3(1)(c) Article 2(1)(c) Article 3(2), first sentence Article 2(2) Article 3(2), second sentence Article 9 Article 4(1)(a)-(f) Article 3(a)-(f) and Article 10(1) Article 4(1)(g) and (h) Article 5(1)(d)(ii) Article 4(2), first subparagraph Article 3(g)-(j), Article 7(3) and Article 10(2) Article 4(2), second subparagraph — Article 4(3) Article 5(1)(d) Article 5(1)(a) Article 11(1) Article 5(1)(b) Article 11(2) Article 5(1)(c) Article 11(3) Article 5(1)(d) Article 11(4) Article 5(1)(e) Article 11(5) Article 5(2) Article 11(6) Article 5(3) Article 12(1) Article 6(1) Article 12(2), first subparagraph Article 6(2) Article 12(2), second and third subparagraphs Article 7(1), first and second subparagraphs Article 4, Article 5(1)(e) Repealed Article 7(1)(b) Article 4(a) Repealed Article 7(1)(bb) Article 4(b) Article 7(1), third subparagraph — Article 7(2) Articles 7 and 8 Article 7(3) Article 12(3) Article 8 Article 7(5) and Article 13, first subparagraph — Article 13, second subparagraph Article 9 Article 14 Article 10 Article 5(1)(a)-(c) Article 11 Article 5(2) Article 12 Article 6 Article 13 Article 15(1) Article 14 Article 15(2) — Article 16 — Article 17 Article 15 Article 18 Article 3(1)(a) Annex I — Annex II — Annex III

Summary: Indirect taxes on raising capital Indirect taxes on raising capital SUMMARY OF: Directive 2008/7/EC — indirect taxes on the raising of capital WHAT IS THE AIM OF THE DIRECTIVE? It seeks to regulate the indirect taxes levied by EU countries on the raising of capital. Indirect taxes are those levied on goods and services rather than on income or profits. While it generally prohibits these taxes, notably capital duty*, it allows certain countries to levy them if they meet certain exceptional conditions. KEY POINTS Tax and the companies concerned The directive seeks to regulate the levying of indirect taxes on: contributions of capital to capital companies; restructuring operations involving capital companies; the issue of certain securities and debentures (long-term securities yielding a fixed rate of interest). The directive applies to the following companies: limited companies (private companies whose owners are legally responsible for their debts only to the extent of the amount of capital they invested); limited partnerships with share capital (part of the capital that comes from the issue of shares); limited liability companies. In this directive ‘capital company’ means any company, firm, association or legal person: whose shares can be dealt on the stock exchange; whose members may freely dispose of their shares and are only responsible for company debts to the extent of their shares; and, as a rule, any other which operates for profit. The directive clarifies what is meant by contributions of capital (including the formation of or conversion into a capital company or the increases in capital shareholding either by contributions of assets or by capitalisation of profits or reserves). It also defines restructuring operations such as mergers affected by the contribution of assets or by the exchange of shares. Prohibition on levying indirect tax on the raising of capital EU countries may not levy indirect tax on the raising of capital to capital companies. These transactions affect the following in particular: contributions of capital; loans or services provided as part of contributions of capital; registration or other formalities required before starting a business because of the company’s legal form; alteration of the instruments constituting the company*; restructuring operations. The directive also prohibits indirect taxes on the issue of certain securities and debentures. However, EU countries may charge certain transfer duties, fees, dues or value added tax. Exemptions Special rules apply to EU countries that charged a duty on contributions of capital to capital companies (capital duty) as at 1 January 2006. Those countries may continue to levy the duty, which must be charged at a single rate not exceeding 1% and may be charged solely on contributions of capital, i.e. capital duty may not be charged on other transactions such as restructuring operations. Capital duty may only be levied by an EU country if the centre of effective management of the capital company is situated in that country at the time the contribution is made. In addition, capital duty can only be charged once in the EU. Exemptions from capital duty may be applied to capital companies which supply a public service or have an exclusively cultural or social aim. FROM WHEN DOES THE DIRECTIVE APPLY? It has applied since 12 March 2008. It had to become law in the EU countries by 31 December 2008. KEY TERMS Capital duty: an indirect tax payable when capital companies are formed and which interferes with the free movement of capital. Instruments constituting the company: the company’s constitution or the legal act setting up the company. MAIN DOCUMENT Council Directive 2008/7/EC of 12 February 2008 concerning indirect taxes on the raising of capital (OJ L 46, 21.2.2008, pp. 11-22) Successive amendments to Directive 2008/7/EC have been incorporated into the original document. This consolidated version is of documentary value only. last update 07.11.2017


7.6.2008 EN Official Journal of the European Union C 141/17 Conclusions of the Council and of the Representatives of the Governments of the Member States, meeting within the Council of 22 May 2008 on promoting creativity and innovation through education and training (2008/C 141/10) THE COUNCIL AND THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES, MEETING WITHIN THE COUNCIL, RECALLING the political background to this issue as set out in the Annex to these conclusions, and in the light of the Conference on Promoting Innovation and Creativity: Schools' Response to the Challenges of Future Societies held in Brdo on 9-10 April 2008, NOTE THAT: 1. while Member States are fully responsible for the organisation and content of their education and training systems, promoting creativity and innovation is an area in which quality and efficiency at national and regional level could benefit from cooperation at European level; 2. the common European objectives of quality, access and openness to the wider world have been supported under the present ‘Education and Training 2010’ work programme by the search for efficiency and equity. Since creativity and the capacity to innovate are also crucial to sustainable economic and social development in Europe, these issues deserve greater emphasis in the context of future European cooperation in the field of education; 3. all levels of education and training can contribute to creativity and innovation in a lifelong learning perspective: the early stages of education concentrating on motivation, learning to learn skills and other key competences, and subsequent stages focusing on more specific skills and the creation, development and application of new knowledge and ideas. CONSIDER that: 1. creativity is the prime source of innovation, which in turn is acknowledged as the main driver of growth and wealth creation, as key to improvements in the social field and as an essential tool in addressing global challenges such as climate change, health care and sustainable development; 2. there is a growing need for action at national level as well as cooperation at EU level to bring about the more ambitious change necessary if schools are to prepare pupils adequately to face the significant challenges and problems of a fast-changing world; 3. beyond their essential tasks of ensuring the acquisition of key competences and providing the knowledge triangle with a solid skills base, education and training systems can play a fundamental role in the development of creative and innovative capacities as key factors in enhancing future economic competitiveness and promoting social cohesion and individual well-being; 4. starting at school level, education systems need to combine the development of specific knowledge and skills together with that of generic capacities linked to creativity, such as curiosity, intuition, critical and lateral thinking, problem solving, experimentation, risk taking and the ability to learn from failure, use of the imagination and hypothetical reasoning, and a sense of entrepreneurship; 5. the eight key competences for lifelong learning defined in 2006 EU Recommendation (1) relate to skills which are of particular relevance to creativity and the capacity to innovate. In particular, there is a need for skills and competences that enable people to embrace change as an opportunity, to remain receptive to new ideas and to respect and appreciate the values of others; 6. in the face of evidence that diversity and multicultural environments can stimulate creativity, inclusive education policies aimed at tolerance and mutual understanding have the potential to turn the increasing multiculturalism of European societies into an asset for creativity, innovation and growth; 7. the participation of schools in new and different networks, particularly those based in the local community, can help them to achieve their educational objectives, as well as contribute to the promotion of creativity and innovation. Partnerships between education, the working world and civil society in general are crucial for anticipating and adapting to the changing needs of professional and social life: traineeships, joint projects, peer learning and course instructors from outside education can introduce teachers and pupils to new ideas; 8. teachers have a crucial role to play in nurturing and supporting each child's creative potential, and can contribute to this by exemplifying creativity in their own teaching. In this regard, more personalised, learner-centred approaches to education tailored to the needs and abilities of different learners — including those with special talents — seem particularly conducive to creativity and, notwithstanding their implications in terms of resources and internal organisation, to increasing the motivation and confidence of more practically or artistically oriented learners; 9. teacher education institutions also have a key contribution to make in providing teaching staff with the knowledge and competences required for change, such as the skills needed to promote learner-centred approaches, collaborative working methods and the use of modern learning tools, particularly those based on ICT. Fostering creative abilities and attitudes within schools also requires the support of an organisational culture open to creativity and the creation of an innovation-friendly environment in general, as well as committed and forward-looking leadership at all levels; 10. since an increasing share of learning occurs at the workplace, in non-formal contexts and in leisure time — often through new ICT-based learning tools and methods — the development of creative and innovative capacities has relevance for all aspects of lifelong learning; 11. greater research, supported by data sharing, is needed on methods for identifying, defining, measuring and recording learning outcomes in soft transversal skills such as creativity and innovative capacity. There is also a need to provide education policy makers with a stronger evidence base for the promotion of creative and innovative capacities through lifelong learning, and to explore the possible contribution which the EU could make to this process. INVITE THE MEMBER STATES TO: 1. consider how to foster greater synergy between knowledge and skills on the one hand and creativity on the other, as well as how best to promote, monitor and assess creativity and innovative capacity, at all levels of education and training; 2. encourage teachers to develop their professional role as learning facilitators and promoters of creativity, and help teacher education institutions to respond to the new demands of the teaching profession, for instance by promoting collaborative, learner-centred approaches, innovative learning environments and the use of open education resources; 3. promote a learning culture through the development of broader learning communities, by facilitating and supporting networks and partnerships — involving civil society and other stakeholders — between education and related areas such as culture on the one hand, and the working world on the other. INVITE THE MEMBER STATES AND THE COMMISSION TO: 1. consider including the promotion of creativity and innovative capacity among the objectives for current and future European cooperation in the field of education and training as complementary to promoting and supporting the implementation of the 2006 Recommendation on key competences for lifelong learning; and explore appropriate and effective means at European level — such as peer learning — to achieve those goals at all levels of education and training and in a lifelong learning perspective; 2. promote cultural production, intercultural dialogue and cooperation at local, regional, national and international level with a view to developing environments especially conducive to creativity and innovation; 3. create synergies to support the promotion of creativity and innovation through active cooperation with relevant international organisations, in particular the Council of Europe, Unesco and the OECD, on topics such as intercultural education, democracy, tolerance and human rights (The right of participation of all Member States in such work should be ensured); 4. encourage and support the development, exchange and dissemination of good practice on evidence-based education policy relating to the promotion of creative and innovative skills in Europe; 5. make appropriate use of EU programmes and instruments to promote and support creativity and innovative capacity at all stages of lifelong learning, as well as in the educational process itself. AND INVITES THE COMMISSION TO: 1. support relevant research, and analyse and exchange data, at both EU level and among the Member States — in cooperation with European and international research institutions — on the promotion and development of creative and innovative skills through education and training; 2. in the process of designing a new strategic framework for European cooperation in education and training beyond 2010, continue efforts to raise the level of understanding on issues associated with the development of creative and innovative capacity through education and training within the overall context of a broad-based innovation policy for the EU. (1) Recommendation 2006/962/EC of the European Parliament and of the Council of 18 December 2006 on key competences for lifelong learning (OJ L 394, 30.12.2006, p. 10). ANNEX POLITICAL BACKGROUND 1. The Education Council's report to the Spring 2001 European Council (1) and the subsequently adopted detailed work programme (2), which set a number of concrete future objectives for education and training systems in Europe, including Developing skills for the knowledge society, Making learning more attractive and Strengthening the links with working life and research, and society at large. 2. The conclusions of the Spring 2006 European Council, which stressed that reforms must be stepped up to ensure high quality education systems which are both efficient and equitable and acknowledged the crucial role of all levels of education and training in the search for excellence and innovation (3). 3. The November 2006 Council conclusions on efficiency and equity in education and training, which stated that educational institutions should focus on the wider learning environment in order to promote and maintain efficiency, equity and general well-being (4). 4. The December 2006 Recommendation of the European Parliament and of the Council on key competences for lifelong learning, which highlighted the role of critical thinking, creativity, initiative, problem solving, risk assessment, decision taking, and constructive management of feelings in all eight key competences (5). 5. The December 2006 Council conclusions on the strategic priorities for innovation at EU level (6), which defined education as a pre-condition for innovation and stated that education must promote talent and creativity from an early age, and which were adopted in response to the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions of 13 September 2006 — Putting knowledge into practice: A broad-based innovation strategy for the EU (7). 6. The May 2007 Commission communication ‘A European agenda for culture in a globalizing world’, which stated that the role of culture in supporting and fostering creativity and innovation must be explored and promoted and sees creativity as the basis of innovation (8). 7. The Council conclusions of May 2007, on a coherent framework of indicators and benchmarks for monitoring progress towards the Lisbon objectives in education and training, which recognised that defining a coherent framework of indicators and benchmarks was a continuous and consultative process (9). 8. The November 2007 Conclusions of the Council and of the Representatives of the Governments of the Member States, meeting within the Council, on improving the quality of teacher education, which agreed to promote the acquisition of competences which will enable teachers to develop new knowledge and be innovative through engagement in reflective practice and research (10). 9. The 2008 joint progress report of the Council and the Commission on the implementation of the ‘Education & Training 2010’ work programme ‘Delivering lifelong learning for knowledge, creativity and innovation’, which emphasised that research and innovation need a broad skills base in the population and that excellence and the key competences must be developed in all systems and levels of education and training (11). 10. The key messages from the Education Council to the Spring 2008 European Council, which stated that education and training must both provide a broad knowledge and skills base in the population and develop learners' creativity and capacity for innovation, and that to this end curricula on all levels should be developed so as to enhance the creative and innovative competences of learners (12). 11. The conclusions of the Spring 2008 European Council, which considered the full development of the potential for innovation and creativity of European citizens built on European culture and excellence in science as a key factor for future growth (13). 12. The Commission Proposal for a Decision of the European Parliament and of the Council concerning the European Year of Creativity and Innovation (2009) (14). (1) The concrete future objectives of education and training systems — Report from the Education Council to the European Council (doc. 5980/01). (2) Detailed work programme on the follow-up of the objectives of education and training systems in Europe, generally referred to as the ‘Education and Training 2010’ work programme (OJ C 142, 14.6.2002, p. 1). (3) Presidency conclusions, Brussels European Council, 23-24 March 2006 (doc. 7775/06). (4) Conclusions of the Council and the Representatives of the Governments of the Member States, meeting within the Council of 14 November 2006, on efficiency and equity in education and training (OJ C 298, 8.12.2006, p. 3). (5) Recommendation 2006/962/EC. (6) Council conclusions on 4 December 2006 on a Broad-based Innovation Strategy: Strategic Priorities for Innovation at EU Level (doc. 16253/06). (7) Doc. 12940/06. (8) Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions, 10 May 2007 — A European agenda for culture in a globalizing world (COM(2007) 242 final). (9) Council conclusions on a coherent framework of indicators and benchmarks for monitoring progress towards the Lisbon objectives in education and training, 24 May 2007 (OJ C 311, 21.12.2007, p. 13). (10) Conclusions of the Council and the Representatives of the Governments of the Member States, meeting within the Council of 15 November 2007 on improving the quality of teacher education (OJ C 300, 12.12.2007, p. 6). (11) ‘Delivering lifelong learning for knowledge, creativity and innovation’ — 2008 joint progress report of the Council and the Commission on the implementation of the ‘Education & Training 2010’ work programme (doc. 5723/08). (12) Key messages of the Education Council to the Spring European Council in the fields of education/training and youth (doc. 6445/08). (13) Brussels European Council, 13-14 March 2008, Presidency Conclusions (doc. 7652/08). (14) Doc. 7755/08.

Summary: Promoting creativity and innovation through education and training Promoting creativity and innovation through education and training Creativity and innovation are considered crucial tools for growth and sustainable development. Education and training are seen to contribute to the promotion of these capacities. Hence, further action is needed both at the national and EU level to incorporate creativity and innovation into lifelong learning. ACT Conclusions of the Council and of the Representatives of the Governments of the Member States, meeting within the Council of 22 May 2008 on promoting creativity and innovation through education and training [Official Journal C 141 of 7.6.2008]. SUMMARY The ‘Education and Training 2010’ work programme promotes the common European objectives of quality, access and openness to the wider world. Since creativity and innovation are also relevant for dealing with global challenges, they should be incorporated into the future framework of European cooperation in the education field. Education and training can develop creative and innovative capacities, which in turn contribute to sustainable economic and social development in Europe. The 2006 Recommendation on key competences for lifelong learning lists eight competences that contain skills relevant for creativity and innovation. Among them, the abilities to see change as an opportunity, to be open to new ideas and to respect others’ values are particularly important. Inclusive education policies that promote tolerance and understanding should be designed in order to turn multiculturalism into an asset for creativity, innovation and growth. New research is needed to identify, measure and document learning outcomes, especially on soft skills like creative and innovative capacities. In addition, to promote these capacities, substantive data need to be presented to policy-makers. The contribution of the EU in this process must also be considered. Consequently, the Member States are called upon to: promote the incorporation of creativity and innovation at all levels of education and training; support the professional development of teachers as mediators of creativity and innovation; encourage the development of a learning culture where networks and partnerships between educational institutions and related bodies are forged with the corporate sector. It is suggested that both the Member States and the Commission: consider complementing the objectives of European cooperation in education with the promotion of creative and innovative capacity, and supporting the implementation of the 2006 Recommendation on key competencies for lifelong learning; develop environments that favour creativity and innovation by promoting multi-level cooperation, intercultural dialogue and cultural production; promote creativity and innovation in collaboration with appropriate international organisations, such as the Council of Europe, Unesco and the OECD; promote the development, exchange and dissemination of good practice on evidence-based education policies relating to creative and innovative skills; promote creativity and innovation at all stages of lifelong learning through the EU programmes and instruments. Finally, the Commission is called upon to: support relevant research, analysis and exchange of data on the promotion of creative and innovative capacity through education and training; incorporate the development of creative and innovative capacity through education and training into the European education cooperation beyond 2010 and the broad-based European innovation policy. Background These conclusions build upon the outcomes of the Conference on Promoting Innovation and Creativity: Schools’ Response to the Challenges of Future Societies of 9-10 April 2008 and on the political background set out in the Annex to these conclusions. The latter includes notably the Council conclusions of 4 December 2006 on a Broad-based Innovation Strategy: Strategic Priorities for Innovation at EU level, which were based on the Commission Communication COM(2006) 502 of 13 September 2006 on a European innovation strategy. These perceive education as one of the pre-conditions for innovation, indicating the importance of supporting the development of talent and creativity from an early age through education. See also For further information about innovation and creativity in education and training, please visit the Education and Training portal. Last updated: 31.07.2008