title: Directive (EU) 2019/2177 of the European Parliament and of the Council of 18 December 2019 amending Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II), Directive 2014/65/EU on markets in financial instruments and Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money-laundering or terrorist financing (Text with EEA relevance)

text:
                  27.12.2019

                  EN

                  Official Journal of the European Union

                  L 334/155

         DIRECTIVE (EU) 2019/2177 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
         of 18 December 2019
         amending Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II), Directive 2014/65/EU on markets in financial instruments and Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money-laundering or terrorist financing
         (Text with EEA relevance)
         THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
         Having regard to the Treaty on the Functioning of the European Union, and in particular Article 53(1) and 62 thereof,
         Having regard to the proposal from the European Commission,
         After transmission of the draft legislative act to the national parliaments,
         Having regard to the opinion of the European Central Bank (1),
         Having regard to the opinion of the European Economic and Social Committee (2),
         Acting in accordance with the ordinary legislative procedure (3),
         Whereas:

                     (1)

                     Directive 2014/65/EU of the European Parliament and of the Council (4) creates a regulatory framework for data reporting services providers (DRSPs) and requires a post-trade data reporting services provider to be authorised as an approved publication arrangement (APA). In addition, a consolidated tape provider (CTP) is required to offer consolidated trading data covering all trades in both equity and non-equity instruments throughout the Union, in accordance with Directive 2014/65/EU. Directive 2014/65/EU also formalises transaction reporting channels to the competent authorities by requiring a third party that reports on behalf of investment firms to be authorised as an approved reporting mechanism (ARM).

                     (2)

                     The quality of trading data and of the processing and provision of such data, including cross-border data processing and provision, is of paramount importance for achieving the main objective of Regulation (EU) No 600/2014 of the European Parliament and of the Council (5), which is to strengthen the transparency of financial markets. Accurate trading data provide users with an overview of trading activity across Union financial markets and provide competent authorities with accurate and comprehensive information on relevant transactions. Given the cross-border dimension of data handling, the benefits of pooling data-related competences, including potential economies of scale, and the adverse impact of potential divergences in supervisory practices on both the quality of trading data and on the tasks of DRSPs, it is therefore appropriate to transfer the authorisation and supervision of DRSPs, as well as data gathering powers, from the competent authorities to the European Supervisory Authority (European Securities and Markets Authority) established by Regulation (EU) No 1095/2010 of the European Parliament and of the Council (6) (ESMA), other than with respect to ARMs or APAs that benefit from a derogation under Regulation (EU) No 600/2014.

                     (3)

                     To achieve the consistent transfer of such powers, it is appropriate to delete provisions pertaining to the operational requirements for DRSPs and the competences of competent authorities with respect to DRSPs set out in Directive 2014/65/EU, and to introduce those provisions in Regulation (EU) No 600/2014.

                     (4)

                     The transfer of the authorisation and supervision of DRSPs, other than with respect to APAs or ARMs that benefit from a derogation under Regulation (EU) No 600/2014, to ESMA is congruent with ESMA’s tasks. More specifically, the conferral of data gathering powers, authorisation and supervision from competent authorities to ESMA is instrumental to other tasks that ESMA performs under Regulation (EU) No 600/2014, such as market monitoring, temporary intervention powers and position management powers, and ensures consistent compliance with pre-trade and post-trade transparency requirements.

                     (5)

                     Directive 2009/138/EC of the European Parliament and of the Council (7) provides that, in accordance with the risk-oriented approach to the Solvency Capital Requirement, it is possible in specific circumstances for insurance and reinsurance undertakings and groups to use internal models for the calculation of that requirement, instead of using the standard formula.

                     (6)

                     Directive 2009/138/EC provides for a country component in the volatility adjustment. In order to ensure that this country component mitigates exaggerations of bond spreads in the relevant country effectively, an appropriate threshold for the risk-corrected country spread should be set for the activation of the country component.

                     (7)

                     In view of increased cross-border insurance activities, it is necessary to enhance the convergent application of Union law in cases of cross-border insurance activity, especially at an early stage. For this purpose, information exchange and cooperation between supervisory authorities and the European Supervisory Authority (European Insurance and Occupational Pensions Authority) established by Regulation (EU) No 1094/2010 of the European Parliament and of the Council (8) (EIOPA), should be strengthened. In particular, notification requirements in the case of significant cross-border insurance activity or a crisis situation, as well as conditions for setting up cooperation platforms, should be provided for where the envisaged cross-border insurance activity is significant. The significance of the cross-border insurance activity should be assessed in terms of the annual gross written premium subscribed in the host Member State compared to the total annual gross written premiums of the insurance company, in terms of the impact on the policyholder protection in the host Member State and in terms of the impact of the branch or activity of the respective insurance company on the market of the host Member State in terms of freedom to provide services. Cooperation platforms are an effective tool to achieve stronger and timely cooperation between supervisory authorities and thus to enhance consumer protection. However, authorisation, supervision and enforcement decisions are and remain within the competence of the supervisory authority of the home Member State.

                     (8)

                     Where cross-border insurance activities are significant with respect to the market of the host Member State and require close collaboration between the supervisory authorities of the home Member State and the host Member State, especially where an insurer might risk being in financial difficulties to the detriment of policyholders and third parties, EIOPA should set up and coordinate collaboration platforms.

                     (9)

                     To take account of the replacement of the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) by EIOPA, the references to CEIOPS in Directive 2009/138/EC should be deleted.

                     (10)

                     Following changes to Regulation (EU) No 1093/2010 of the European Parliament and of the Council (9), the European Supervisory Authority (European Banking Authority), established by that Regulation (EBA), will have a new role in the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and subsequent changes will need to be made to Directive (EU) 2015/849 of the European Parliament and of the Council (10).

                     (11)

                     Directives 2009/138/EC, 2014/65/EU and (EU) 2015/849 should therefore be amended accordingly,

               HAVE ADOPTED THIS DIRECTIVE:

            Article 1
            Amendments to Directive 2014/65/EU
            Directive 2014/65/EU is amended as follows:

                        (1)

                        Article 1 is amended as follows:

                                    (a)

                                    paragraph 1 is replaced by the following:

                                       ‘1.   This Directive shall apply to investment firms, market operators, and third-country firms providing investment services or performing investment activities through the establishment of a branch in the Union.’;

                                    (b)

                                    in paragraph 2, point (d) is deleted;

                        (2)

                        in Article 4, paragraph 1 is amended as follows:

                                    (a)

                                    points (36) and (37) are replaced by the following:

                                                ‘(36)

                                                “management body” means the body or bodies of an investment firm, a market operator, or a data reporting services provider as defined in point (36a) of Article 2(1) of Regulation (EU) No 600/2014, which are appointed in accordance with national law, which are empowered to set the entity’s strategy, objectives and overall direction, and which oversee and monitor management decision-making and include persons who effectively direct the business of the entity.
                                                Where this Directive refers to the management body and, pursuant to national law, the managerial and supervisory functions of the management body are assigned to different bodies or different members within one body, the Member State shall identify the bodies or members of the management body responsible in accordance with its national law, unless otherwise specified by this Directive;

                                                (37)

                                                “senior management” means natural persons who exercise executive functions within an investment firm, a market operator, or a data reporting services provider as defined in point (36a) of Article 2(1) of Regulation (EU) No 600/2014, and who are responsible and accountable to the management body for the day-to-day management of the entity, including for the implementation of the policies concerning the distribution of services and products to clients by the firm and its personnel;’;

                                    (b)

                                    points (52), (53), (54), (55)(c) and (63) are deleted;

                        (3)

                        in Article 22, the following paragraph is added:
                        ‘Member States shall ensure that competent authorities, where they are in charge of authorising and supervising the activities of an approved publication arrangement (APA), as defined in point (34) of Article 2(1) of Regulation (EU) No 600/2014 with a derogation in accordance with Article 2(3) of that Regulation, or an approved reporting mechanism (ARM), as defined in point (36) of Article 2(1) of that Regulation with a derogation in accordance with Article 2(3) of that Regulation, monitor the activities of that APA or ARM so as to assess compliance with the operating conditions provided for in that Regulation. Member States shall ensure that the appropriate measures are in place to enable the competent authorities to obtain the information needed to assess the compliance of APAs and ARMs with those obligations.’;

                        (4)

                        Title V is deleted;

                        (5)

                        Article 70 is amended as follows:

                                    (a)

                                    paragraph 3 is amended as follows:

                                                (i)

                                                in point (a), points (xxxvii) to (xxxx) are deleted;

                                                (ii)

                                                in point (b), the following point is inserted:

                                                            ‘(xxa)

                                                            Article 27f(1), (2) and (3), Article 27g(1) to (5) and Article 27i(1) to (4), where an APA or ARM has a derogation in accordance with Article 2(3);’;

                                    (b)

                                    in paragraph 4, points (a) and (b) are replaced by the following:

                                                ‘(a)

                                                Article 5 or Article 6(2) or Article 34, 35, 39 or 44 of this Directive; or

                                                (b)

                                                the third sentence of Article 7(1) of Regulation (EU) No 600/2014 or Article 11(1) of that Regulation, and, where an APA or ARM has a derogation in accordance with Article 2(3) of that Regulation, Article 27b of that Regulation.’;

                                    (c)

                                    in paragraph 6, point (c) is replaced by the following:

                                                ‘(c)

                                                in the case of an investment firm, a market operator authorised to operate an MTF or OTF, or a regulated market, withdrawal or suspension of the authorisation of the institution in accordance with Articles 8 and 43 of this Directive and, where an APA or ARM has a derogation in accordance with Article 2(3) of Regulation (EU) No 600/2014, withdrawal or suspension of the authorisation in accordance with Article 27e of that Regulation;’;

                        (6)

                        in Article 71, paragraph 6 is replaced by the following:

                           ‘6.   Where a published criminal or administrative sanction relates to an investment firm, market operator, credit institution in relation to investment services and activities or ancillary services, or a branch of third-country firms authorised in accordance with this Directive, or to an APA or ARM authorised in accordance with Regulation (EU) No 600/2014 which has a derogation in accordance with Article 2(3) of that Regulation, ESMA shall add a reference to the published sanction in the relevant register.’;

                        (7)

                        in Article 77(1), first subparagraph, the introductory sentence is replaced by the following:
                        ‘Member States shall provide, at least, that any person authorised within the meaning of Directive 2006/43/EC of the European Parliament and of the Council (*1), performing in an investment firm, in a regulated market, or in an APA or ARM authorised in accordance with Regulation (EU) No 600/2014 which has a derogation in accordance with Article 2(3) of that Regulation, the task described in Article 34 of Directive 2013/34/EU or Article 73 of Directive 2009/65/EC or any other task prescribed by law, shall have a duty to report promptly to the competent authorities any fact or decision concerning that undertaking of which that person has become aware while carrying out that task and which is liable to:

                           (*1)  Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC (OJ L 157, 9.6.2006, p. 87).’;"

                        (8)

                        Article 89 is amended as follows:

                                    (a)

                                    paragraphs 2 and 3 are replaced by the following:

                                       ‘2.   The delegations of power referred to in Article 2(3), the second subparagraph of point (2) of Article 4(1), Article 4(2), Article 13(1), Article 16(12), Article 23(4), Article 24(13), Article 25(8), Article 27(9), Article 28(3), Article 30(5), Article 31(4), Article 32(4), Article 33(8), Article 52(4), Article 54(4), Article 58(6), and Article 79(8) shall be conferred on the Commission for an indeterminate period of time from 2 July 2014.

                                       3.   The delegations of powers referred to in Article 2(3), the second subparagraph of point (2) of Article 4(1), Article 4(2), Article 13(1), Article 16(12), Article 23(4), Article 24(13), Article 25(8), Article 27(9), Article 28(3), Article 30(5), Article 31(4), Article 32(4), Article 33(8), Article 52(4) Article 54(4), Article 58(6), and Article 79(8) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.’;

                                    (b)

                                    paragraph 5 is replaced by the following:

                                       ‘5.   A delegated act adopted pursuant to Article 2(3), the second subparagraph of point (2) of Article 4(1), Article 4(2), Article 13(1), Article 16(12), Article 23(4), Article 24(13), Article 25(8), Article 27(9), Article 28(3), Article 30(5), Article 31(4), Article 32(4), Article 33(8), Article 52(4), Article 54(4), Article 58(6) or Article 79(8) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of three months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or of the Council.’;

                        (9)

                        in Article 90, paragraphs 2 and 3 are deleted;

                        (10)

                        in Article 93(1), the second subparagraph is replaced by the following:
                        ‘Member States shall apply those measures from 3 January 2018.’;

                        (11)

                        in Annex I, Section D is deleted.

            Article 2
            Amendments to Directive 2009/138/EC
            Directive 2009/138/EC is amended as follows:

                        (1)

                        in Article 77d(4), the first sentence is replaced by the following:
                        ‘For each relevant country, the volatility adjustment to the risk-free interest rates referred to in paragraph 3 for the currency of that country shall, before the application of the 65 % factor, be increased by the difference between the risk-corrected country spread and twice the risk-corrected currency spread whenever that difference is positive and the risk-corrected country spread is higher than 85 basis points.’;

                        (2)

                        in Article 112, the following paragraph is inserted:

                           ‘3a.   Supervisory authorities shall inform EIOPA in accordance with Article 35(1) of Regulation (EU) No 1094/2010 of any applications to use or change an internal model. Upon the request of one or more supervisory authorities concerned, EIOPA may provide technical assistance, pursuant to point (b) of Article 8(1) of that Regulation, to the supervisory authority or authorities which requested the assistance, with respect to the decision on the application.’;

                        (3)

                        in Title I, Chapter VIII, the following section is inserted:

                           ‘Section 2A

                              Notification and collaboration platforms

                           Article 152a
                           Notification

                              1.   Where the supervisory authority of the home Member State intends to authorise an insurance or reinsurance undertaking whose scheme of operations indicates that a part of its activities will be based on the freedom to provide services or the freedom of establishment in another Member State, and that scheme of operations also indicates that those activities are likely to be of relevance with respect to the host Member State’s market, the supervisory authority of the home Member State shall notify EIOPA and the supervisory authority of the relevant host Member State thereof.

                              2.   The supervisory authority of the home Member State shall, in addition to the notification provided for in paragraph 1, also notify EIOPA and the supervisory authority of the relevant host Member State where it identifies deteriorating financial conditions or other emerging risks posed by an insurance or reinsurance undertaking carrying out activities which are based on the freedom to provide services or the freedom of establishment and which may have a cross-border effect. The supervisory authority of the host Member State may also notify the supervisory authority of the relevant home Member State where it has serious and reasoned concerns with regard to consumer protection. The supervisory authorities may refer the matter to EIOPA and request its assistance in cases where no bilateral solution can be found.

                              3.   The notifications referred to in paragraphs 1 and 2 shall be sufficiently detailed to allow for a proper assessment.

                              4.   The notifications referred to in paragraphs 1 and 2 are without prejudice to the supervisory mandate of the supervisory authorities of the home Member State and host Member State provided for in this Directive.

                           Article 152b
                           Collaboration platforms

                              1.   EIOPA may, in the case of justified concerns about negative effects on policy holders, on its own initiative or at the request of one or more of the relevant supervisory authorities, set up and coordinate a collaboration platform to strengthen the exchange of information and to enhance collaboration between the relevant supervisory authorities where an insurance or reinsurance undertaking carries out, or intends to carry out, activities which are based on the freedom to provide services or the freedom of establishment and where:

                                          (a)

                                          such activities are of relevance with respect to the host Member State’s market;

                                          (b)

                                          a notification by the supervisory authority of the home Member State has been made under Article 152a(2) of deteriorating financial conditions or other emerging risks; or

                                          (c)

                                          the matter has been referred to EIOPA under Article 152a(2).

                              2.   Paragraph 1 is without prejudice to the right of the relevant supervisory authorities to set up a collaboration platform where they all agree to do so.

                              3.   The setting up of a collaboration platform pursuant to paragraphs 1 and 2 is without prejudice to the supervisory mandate of the supervisory authorities of the home Member State and host Member State provided for in this Directive.

                              4.   Without prejudice to Article 35 of Regulation (EU) No 1094/2010, at the request of EIOPA, the relevant supervisory authorities shall provide all necessary information in a timely manner to allow for the proper functioning of the collaboration platform.’;

                        (4)

                        Article 231 is amended as follows:

                                    (a)

                                    in paragraph 1, the third subparagraph is replaced by the following:
                                    ‘The group supervisor shall inform the other members of the college of supervisors, including EIOPA, of the receipt of the application and shall forward the complete application, including the documentation submitted by the undertaking, to those members, without delay. Upon the request of one or more supervisory authorities concerned, EIOPA may provide technical assistance, pursuant to point (b) of Article 8(1) of Regulation (EU) No 1094/2010, to the supervisory authority or authorities which requested the assistance, with respect to the decision on the application.’;

                                    (b)

                                    in paragraph 3, third subparagraph, the first sentence is replaced by the following:
                                    ‘Where EIOPA does not take a decision as referred to in the second subparagraph of this paragraph in accordance with Article 19(3) of Regulation (EU) No 1094/2010, the group supervisor shall take the final decision.’;

                        (5)

                        in Article 237(3), third subparagraph, the first sentence is replaced by the following:
                        ‘Where EIOPA does not take a decision as referred to in the second subparagraph of this paragraph in accordance with Article 19(3) of Regulation (EU) No 1094/2010, the group supervisor shall take the final decision.’;

                        (6)

                        in Article 248(4), the third subparagraph is deleted.

            Article 3
            Amendments to Directive (EU) 2015/849
            Directive (EU) 2015/849 is amended as follows:

                        (1)

                        Article 6 is amended as follows:

                                    (a)

                                    paragraph 3 is replaced by the following:

                                       ‘3.   The Commission shall make the report referred to in paragraph 1 available to Member States and obliged entities in order to assist them in identifying, understanding, managing and mitigating the risks of money laundering and terrorist financing, and to allow other stakeholders, including national legislators, the European Parliament, the European Supervisory Authority (European Banking Authority) established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council (*2) (EBA), and representatives from EU Financial Intelligence Units (FIUs), to better understand those risks. The report shall be made public at the latest six months after having been made available to Member States, except for those elements of the report which contain classified information.

                                       (*2)  Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).’;"

                                    (b)

                                    in paragraph 5, the second sentence is replaced by the following:
                                    ‘Thereafter, EBA shall issue an opinion every two years.’;

                        (2)

                        Article 7 is amended as follows:

                                    (a)

                                    in paragraph 2, the second sentence is replaced by the following:
                                    ‘The identity of that authority or the description of the mechanism shall be notified to the Commission, to EBA, and to the other Member States.’;

                                    (b)

                                    in paragraph 5, the first sentence is replaced by the following:

                                       ‘5.   Member States shall make the results of their risk assessments, including their updates, available to the Commission, to EBA and to the other Member States.’;

                        (3)

                        in Article 17, the first sentence is replaced by the following:
                        ‘By 26 June 2017, the ESAs shall issue guidelines, addressed to competent authorities and to the credit institutions and financial institutions, in accordance with Article 16 of Regulation (EU) No 1093/2010 on the risk factors to be taken into consideration and the measures to be taken in situations where simplified customer due diligence measures are appropriate. From 1 January 2020, EBA shall, where appropriate, issue such guidelines.’;

                        (4)

                        in Article 18(4), the first sentence is replaced by the following:

                           ‘4.   By 26 June 2017, the ESAs shall issue guidelines, addressed to competent authorities and the credit institutions and financial institutions, in accordance with Article 16 of Regulation (EU) No 1093/2010 on the risk factors to be taken into consideration and the measures to be taken in situations where enhanced customer due diligence measures are appropriate. From 1 January 2020, EBA shall, where appropriate, issue such guidelines.’;

                        (5)

                        in Article 41, paragraph 1 is replaced by the following:

                           ‘1.   The processing of personal data under this Directive is subject to Regulations (EU) 2016/679 (*3) and (EU) 2018/1725 (*4) of the European Parliament and of the Council.

                           (*3)  Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1)."

                           (*4)  Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39).’;"

                        (6)

                        Article 45 is amended as follows:

                                    (a)

                                    paragraph 4 is replaced by the following:

                                       ‘4.   The Member States and EBA shall inform each other of instances in which the law of a third country does not permit the implementation of the policies and procedures required under paragraph 1. In such cases, coordinated actions may be taken to pursue a solution. In assessing which third countries do not permit the implementation of the policies and procedures required under paragraph 1, Member States and EBA shall take into account any legal constraints that may hinder the proper implementation of those policies and procedures, including secrecy, data protection and other constraints limiting the exchange of information that may be relevant for that purpose.’;

                                    (b)

                                    paragraph 6 is replaced by the following:

                                       ‘6.   EBA shall develop draft regulatory technical standards specifying the type of additional measures referred to in paragraph 5 and the minimum action to be taken by credit institutions and financial institutions where a third country’s law does not permit the implementation of the measures required under paragraphs 1 and 3.
                                       EBA shall submit the draft regulatory technical standards referred to in the first subparagraph to the Commission by 26 December 2016.’;

                                    (c)

                                    paragraph 10 is replaced by the following:

                                       ‘10.   EBA shall develop draft regulatory technical standards on the criteria for determining the circumstances in which the appointment of a central contact point pursuant to paragraph 9 is appropriate, and what the functions of the central contact points should be.
                                       EBA shall submit the draft regulatory technical standards referred to in the first subparagraph to the Commission by 26 June 2017.’;

                        (7)

                        Article 48 is amended as follows:

                                    (a)

                                    in paragraph 1a, second subparagraph, the third sentence is replaced by the following:
                                    ‘The financial supervisory authorities of the Member States shall also serve as a contact point for EBA.’;

                                    (b)

                                    in paragraph 10, the first sentence is replaced by the following:

                                       ‘10.   By 26 June 2017, the ESAs shall issue guidelines, addressed to competent authorities, in accordance with Article 16 of Regulation (EU) No 1093/2010, on the characteristics of a risk-based approach to supervision and the steps to be taken when conducting supervision on a risk-based basis. From 1 January 2020, EBA shall, where appropriate, issue such guidelines.’;

                        (8)

                        in Chapter VI, Section 3, Subsection II, the title is replaced by the following:
                        ‘Cooperation with EBA’;

                        (9)

                        Article 50 is replaced by the following:

                           ‘Article 50
                           The competent authorities shall provide EBA with all the information necessary to allow it to carry out its duties under this Directive.’;

                        (10)

                        Article 62 is amended as follows:

                                    (a)

                                    paragraph 1 is replaced by the following:

                                       ‘1.   Member States shall ensure that their competent authorities inform EBA of all administrative sanctions and measures imposed in accordance with Articles 58 and 59 on credit institutions and financial institutions, including of any appeal in relation thereto and the outcome thereof.’;

                                    (b)

                                    paragraph 3 is replaced by the following:

                                       ‘3.   EBA shall maintain a website with links to each competent authority’s publication of administrative sanctions and measures imposed in accordance with Article 60 on credit institutions and financial institutions, and shall show the time period for which each Member State publishes administrative sanctions and measures.’.

            Article 4
            Transposition

               1.   Member States shall adopt and publish, by 30 June 2021, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall immediately communicate to the Commission the main provisions of national law which they adopt in the field covered by this Directive.

               2.   Member States shall adopt and publish, by 30 June 2020, the laws, regulations and administrative provisions necessary to comply with point (1) of Article 2 of this Directive. They shall immediately communicate to the Commission the main provisions of national law which they adopt in the field covered by this Directive.

               3.   Member States shall apply the measures with respect to Article 1 from 1 January 2022, and with respect to Articles 2 and 3 from 30 June 2021. Member States shall apply the measures with respect to point (1) of Article 2 by 1 July 2020.

               4.   When Member States adopt the measures referred to in paragraphs 1 and 2, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such a reference is to be made.

            Article 5
            Entry into force
            This Directive shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

            Article 6
            Addressees
            This Directive is addressed to the Member States.

            Done at Strasbourg, 18 December 2019.

                  For the European Parliament

                  The President

               D. M. SASSOLI

                  For the Council

                  The President

               T. TUPPURAINEN

            (1)  OJ C 251, 18.7.2018, p. 2.

            (2)  OJ C 227, 28.6.2018, p. 63.

            (3)  Position of the European Parliament of 16 April 2019 (not yet published in the Official Journal) and decision of the Council of 2 December 2019.

            (4)  Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).

            (5)  Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ L 173, 12.6.2014, p. 84).

            (6)  Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).

            (7)  Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1).

            (8)  Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48).

            (9)  Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).

            (10)  Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (OJ L 141, 5.6.2015, p. 73).


title: Commission Implementing Directive (EU) 2019/1985 of 28 November 2019 amending Directives 2003/90/EC and 2003/91/EC setting out implementing measures for the purposes of Article 7 of Council Directive 2002/53/EC and Article 7 of Council Directive 2002/55/EC respectively, as regards the characteristics to be covered as a minimum by the examination and the minimum conditions for examining certain varieties of agricultural plant species and vegetable species (Text with EEA relevance)

text:
                  29.11.2019

                  EN

                  Official Journal of the European Union

                  L 308/86

         COMMISSION IMPLEMENTING DIRECTIVE (EU) 2019/1985
         of 28 November 2019
         amending Directives 2003/90/EC and 2003/91/EC setting out implementing measures for the purposes of Article 7 of Council Directive 2002/53/EC and Article 7 of Council Directive 2002/55/EC respectively, as regards the characteristics to be covered as a minimum by the examination and the minimum conditions for examining certain varieties of agricultural plant species and vegetable species
         (Text with EEA relevance)
         THE EUROPEAN COMMISSION,
         Having regard to the Treaty on the Functioning of the European Union,
         Having regard to Council Directive 2002/53/EC of 13 June 2002 on the common catalogue of varieties of agricultural plant species (1), and in particular Article 7(2)(a) and (b) thereof,
         Having regard to Council Directive 2002/55/EC of 13 June 2002 on the marketing of vegetable seed (2), and in particular Article 7(2)(a) and (b) thereof,
         Whereas:

                     (1)

                     Commission Directives 2003/90/EC (3) and 2003/91/EC (4) were adopted to ensure that the varieties the Member States include in their national catalogues comply with the protocols established by the Community Plant Variety Office (CPVO) as regards the characteristics to be covered as a minimum by the examination of the various species and the minimum conditions for examining the varieties, as far as such protocols had been established. For the species not covered by CPVO protocols those Directives provide that guidelines of the International Union for Protection of New Varieties of Plants (UPOV) are to apply.

                     (2)

                     Since the last amendment to Directives 2003/90/EC and 2003/91/EC by Commission Implementing Directive (EU) 2019/114 (5), the CPVO has established further protocols and has updated existing ones.

                     (3)

                     Directives 2003/90/EC and 2003/91/EC should therefore be amended accordingly.

                     (4)

                     The measures provided for in this Directive are in accordance with the opinion of the Standing Committee on Plants, Animals, Food and Feed,

               HAS ADOPTED THIS DIRECTIVE:

            Article 1
            Annexes I and II to Directive 2003/90/EC are replaced by the text set out in Part A of the Annex to this Directive.

            Article 2
            The Annexes to Directive 2003/91/EC are replaced by the text set out in Part B of the Annex to this Directive.

            Article 3
            For examinations started before 1 June 2020 Member States may apply Directives 2003/90/EC and 2003/91/EC in the versions applying before their amendment by this Directive.

            Article 4
            Member States shall adopt and publish, by 31 May 2020, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions.
            They shall apply those provisions from 1 June 2020.
            When Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

            Article 5
            This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

            Article 6
            This Directive is addressed to the Member States.

            Done at Brussels, 28 November 2019.

                  For the Commission

                  The President

               Jean-Claude JUNCKER

            (1)  OJ L 193, 20.7.2002, p. 1.

            (2)  OJ L 193, 20.7.2002, p. 33.

            (3)  Commission Directive 2003/90/EC of 6 October 2003 setting out implementing measures for the purposes of Article 7 of Council Directive 2002/53/EC as regards the characteristics to be covered as a minimum by the examination and the minimum conditions for examining certain varieties of agricultural plant species (OJ L 254, 8.10.2003, p. 7).

            (4)  Commission Directive 2003/91/EC of 6 October 2003 setting out implementing measures for the purposes of Article 7 of Council Directive 2002/55/EC as regards the characteristics to be covered as a minimum by the examination and the minimum conditions for examining certain varieties of vegetable species (OJ L 254, 8.10.2003, p. 11).

            (5)  Commission Implementing Directive (EU) 2019/114 of 24 January 2019 amending Directives 2003/90/EC and 2003/91/EC setting out implementing measures for the purposes of Article 7 of Council Directive 2002/53/EC and Article 7 of Council Directive 2002/55/EC respectively, as regards the characteristics to be covered as a minimum by the examination and the minimum conditions for examining certain varieties of agricultural plant species and vegetable species (OJ L 23, 25.1.2019, p. 35).

            ANNEX

               PART A

                     ‘ANNEX I
                     List of species referred to in Article 1(2)(a) which are to comply with CPVO technical protocols (1)

                                    Scientific name

                                    Common name

                                    CPVO protocol

                                    Festuca arundinacea Schreb.

                                 Tall fescue

                                 TP 39/1 of 1.10.2015

                                    Festuca filiformis Pourr.

                                 Fine-leaved sheep’s fescue

                                 TP 67/1 of 23.6.2011

                                    Festuca ovina L.

                                 Sheep’s fescue

                                 TP 67/1 of 23.6.2011

                                    Festuca pratensis Huds.

                                 Meadow fescue

                                 TP 39/1 of 1.10.2015

                                    Festuca rubra L.

                                 Red fescue

                                 TP 67/1 of 23.6.2011

                                    Festuca trachyphylla (Hack.) Krajina

                                 Hard fescue

                                 TP 67/1 of 23.6.2011

                                    Lolium multiflorum Lam.

                                 Italian ryegrass

                                 TP 4/2 of 19.3.2019

                                    Lolium perenne L.

                                 Perennial ryegrass

                                 TP 4/2 of 19.3.2019

                                    Lolium x hybridum Hausskn.

                                 Hybrid ryegrass

                                 TP 4/2 of 19.3.2019

                                    Pisum sativum L. (partim)

                                 Field pea

                                 TP 7/2 Rev. 2 of 15.3.2017

                                    Poa pratensis L.

                                 Smooth-stalked meadow grass

                                 TP 33/1 of 15.3.2017

                                    Vicia faba L.

                                 Field bean

                                 TP/8/1 of 19.3.2019

                                    Vicia sativa L.

                                 Common vetch

                                 TP 32/1 of 19.4.2016

                                    Brassica napus L. var. napobrassica (L.) Rchb.

                                 Swede

                                 TP 89/1 of 11.3.2015

                                    Raphanus sativus L. var. oleiformis Pers.

                                 Fodder radish

                                 TP 178/1 of 15.3.2017

                                    Brassica napus L. (partim)

                                 Swede rape

                                 TP 36/2 of 16.11.2011

                                    Cannabis sativa L.

                                 Hemp

                                 TP 276/1 Partial rev. of 21.3.2018

                                    Glycine max (L.) Merr.

                                 Soya bean

                                 TP 80/1 of 15.3.2017

                                    Gossypium spp.

                                 Cotton

                                 TP 88/1 of 19.4.2016

                                    Helianthus annuus L.

                                 Sunflower

                                 TP 81/1 of 31.10.2002

                                    Linum usitatissimum L.

                                 Flax/Linseed

                                 TP 57/2 of 19.3.2014

                                    Sinapis alba L.

                                 White mustard

                                 TP 179/1 of 15.3.2017

                                    Avena nuda L.

                                 Small naked oat, Hulless oat

                                 TP 20/2 of 1.10.2015

                                    Avena sativa L. (includes A. byzantinaK. Koch)

                                 Oats and Red oat

                                 TP 20/2 of 1.10.2015

                                    Hordeum vulgare L.

                                 Barley

                                 TP 19/5 of 19.3.2019

                                    Oryza sativa L.

                                 Rice

                                 TP 16/3 of 1.10.2015

                                    Secale cereale L.

                                 Rye

                                 TP 58/1 of 31.10.2002

                                    Sorghum bicolor (L.) Moench

                                 Sorghum

                                 TP 122/1 of 19.3.2019

                                    Sorghum sudanense (Piper) Stapf.

                                 Sudan grass

                                 TP 122/1 of 19.3.2019

                                    Sorghum bicolor (L.) Moench x Sorghum sudanense (Piper) Stapf

                                 Hybrids resulting from the crossing of Sorghum bicolor and Sorghum sudanense

                                 TP 122/1 of 19.3.2019

                                    xTriticosecale Wittm. ex A. Camus

                                 Hybrids resulting from the crossing of a species of the genus Triticum and a species of the genus Secale

                                 TP 121/2 rev. 1 of 16.2.2011

                                    Triticum aestivum L.

                                 Wheat

                                 TP 3/5 of 19.3.2019

                                    Triticum durum Desf.

                                 Durum wheat

                                 TP 120/3 of 19.3.2014

                                    Zea mays L. (partim)

                                 Maize

                                 TP 2/3 of 11.3.2010

                                    Solanum tuberosum L.

                                 Potato

                                 TP 23/3 of 15.3.2017

                     ANNEX II
                     List of species referred to in Article 1(2)(b) which are to comply with UPOV test guidelines (2)

                                    Scientific name

                                    Common name

                                    UPOV guideline

                                    Beta vulgaris L.

                                 Fodder beet

                                 TG/150/3 of 4.11.1994

                                    Agrostis canina L.

                                 Velvet bent

                                 TG/30/6 of 12.10.1990

                                    Agrostis gigantea Roth

                                 Red top

                                 TG/30/6 of 12.10.1990

                                    Agrostis stolonifera L.

                                 Creeping bent grass

                                 TG/30/6 of 12.10.1990

                                    Agrostis capillaris L.

                                 Brown top

                                 TG/30/6 of 12.10.1990

                                    Bromus catharticus Vahl

                                 Rescue grass

                                 TG/180/3 of 4.4.2001

                                    Bromus sitchensis Trin.

                                 Alaska brome grass

                                 TG/180/3 of 4.4.2001

                                    Dactylis glomerata L.

                                 Cocksfoot

                                 TG/31/8 of 17.4.2002

                                    xFestulolium Asch. et Graebn.

                                 Hybrids resulting from the crossing of a species of the genus Festuca with a species of the genus Lolium

                                 TG/243/1 of 9.4.2008

                                    Phleum nodosum L.

                                 Small timothy

                                 TG/34/6 of 7.11.1984

                                    Phleum pratense L.

                                 Timothy

                                 TG/34/6 of 7.11.1984

                                    Lotus corniculatus L.

                                 Birdsfoot trefoil

                                 TG 193/1 of 9.4.2008

                                    Lupinus albus L.

                                 White lupin

                                 TG/66/4 of 31.3.2004

                                    Lupinus angustifolius L.

                                 Narrow-leaved lupin

                                 TG/66/4 of 31.3.2004

                                    Lupinus luteus L.

                                 Yellow lupin

                                 TG/66/4 of 31.3.2004

                                    Medicago doliata Carmign.

                                 Straight-spined medic

                                 TG 228/1 of 5.4.2006

                                    Medicago italica (Mill.) Fiori

                                 Disc medic

                                 TG 228/1 of 5.4.2006

                                    Medicago littoralis Rohde ex Loisel.

                                 Shore medic/Strand medic

                                 TG 228/1 of 5.4.2006

                                    Medicago lupulina L.

                                 Trefoil

                                 TG 228/1 of 5.4.2006

                                    Medicago murex Willd.

                                 Sphere medic

                                 TG 228/1 of 5.4.2006

                                    Medicago polymorpha L.

                                 Bur medic

                                 TG 228/1 of 5.4.2006

                                    Medicago rugosa Desr.

                                 Wrinkled medic/Gama medic

                                 TG 228/1 of 5.4.2006

                                    Medicago sativa L.

                                 Lucerne

                                 TG/6/5 of 6.4.2005

                                    Medicago scutellata (L.) Mill.

                                 Snail medic/Shield medic

                                 TG 228/1 of 5.4.2006

                                    Medicago truncatula Gaertn.

                                 Barrel medic

                                 TG 228/1 of 5.4.2006

                                    Medicago x varia T. Martyn

                                 Sand lucerne

                                 TG/6/5 of 6.4.2005

                                    Trifolium pratense L.

                                 Red clover

                                 TG/5/7 of 4.4.2001

                                    Trifolium repens L.

                                 White clover

                                 TG/38/7 of 9.4.2003

                                    Phacelia tanacetifolia Benth.

                                 California Bluebell

                                 TG/319/1 of 5.4.2017

                                    Arachis hypogaea L.

                                 Groundnut/Peanut

                                 TG/93/4 of 9.4.2014

                                    Brassica rapa L. var. silvestris (Lam.) Briggs

                                 Turnip rape

                                 TG/185/3 of 17.4.2002

                                    Carthamus tinctorius L.

                                 Safflower

                                 TG/134/3 of 12.10.1990

                                    Papaver somniferum L.

                                 Poppy

                                 TG/166/4 of 9.4.2014

               PART B

                     ‘ANNEX I
                     List of species referred to in Article 1(2)(a) which are to comply with CPVO technical protocols (3)

                                    Scientific name

                                    Common name

                                    CPVO protocol

                                    Allium cepa L. (Cepa group)

                                 Onion and Echalion

                                 TP 46/2 of 1.4.2009

                                    Allium cepa L. (Aggregatum group)

                                 Shallot

                                 TP 46/2 of 1.4.2009

                                    Allium fistulosum L.

                                 Japanese bunching onion or Welsh onion

                                 TP 161/1 of 11.3.2010

                                    Allium porrum L.

                                 Leek

                                 TP 85/2 of 1.4.2009

                                    Allium sativum L.

                                 Garlic

                                 TP 162/1 of 25.3.2004

                                    Allium schoenoprasum L.

                                 Chives

                                 TP 198/2 of 11.3.2015

                                    Apium graveolens L.

                                 Celery

                                 TP 82/1 of 13.3.2008

                                    Apium graveolens L.

                                 Celeriac

                                 TP 74/1 of 13.3.2008

                                    Asparagus officinalis L.

                                 Asparagus

                                 TP 130/2 of 16.2.2011

                                    Beta vulgaris L.

                                 Beetroot including Cheltenham beet

                                 TP 60/1 of 1.4.2009

                                    Beta vulgaris L.

                                 Spinach beet or Chard

                                 TP 106/1 of 11.3.2015

                                    Brassica oleracea L.

                                 Curly kale

                                 TP 90/1 of 16.2.2011

                                    Brassica oleracea L.

                                 Cauliflower

                                 TP 45/2 Rev. 2 of 21.3.2018

                                    Brassica oleracea L.

                                 Sprouting broccoli or Calabrese

                                 TP 151/2 Rev. of 15.3.2017

                                    Brassica oleracea L.

                                 Brussels sprouts

                                 TP 54/2 Rev. of 15.3.2017

                                    Brassica oleracea L.

                                 Kohlrabi

                                 TP 65/1 Rev. of 15.3.2017

                                    Brassica oleracea L.

                                 Savoy cabbage, White cabbage and Red cabbage

                                 TP 48/3 Rev. of 15.3.2017

                                    Brassica rapa L.

                                 Chinese cabbage

                                 TP 105/1 of 13.3.2008

                                    Capsicum annuum L.

                                 Chilli or Pepper

                                 TP 76/2 Rev. of 15.3.2017

                                    Cichorium endivia L.

                                 Curled-leaved endive and Plain-leaved endive

                                 TP 118/3 of 19.3.2014

                                    Cichorium intybus L.

                                 Industrial chicory

                                 TP 172/2 of 1.12.2005

                                    Cichorium intybus L.

                                 Leaf chicory

                                 TP 154/1 Rev. of 19.3.2019

                                    Cichorium intybus L.

                                 Witloof chicory

                                 TP 173/2 of 21.3.2018

                                    Citrullus lanatus (Thunb.) Matsum. et Nakai

                                 Watermelon

                                 TP 142/2 of 19.3.2014

                                    Cucumis melo L.

                                 Melon

                                 TP 104/2 of 21.3.2007

                                    Cucumis sativus L.

                                 Cucumber and Gherkin

                                 TP 61/2 Rev. 2 of 19.3.2019

                                    Cucurbita maxima Duchesne

                                 Gourd

                                 TP 155/1 of 11.3.2015

                                    Cucurbita pepo L.

                                 Marrow or Courgette

                                 TP 119/1rev. of 19.3.2014

                                    Cynara cardunculus L.

                                 Globe artichoke and Cardoon

                                 TP 184/2 of 27.2.2013

                                    Daucus carota L.

                                 Carrot and Fodder carrot

                                 TP 49/3 of 13.3.2008

                                    Foeniculum vulgare Mill.

                                 Fennel

                                 TP 183/1 of 25.3.2004

                                    Lactuca sativa L.

                                 Lettuce

                                 TP 13/6 Rev. of 15.2.2019

                                    Solanum lycopersicum L.

                                 Tomato

                                 TP 44/4 Rev. 3 of 21.3.2018

                                    Petroselinum crispum (Mill.) Nyman ex A. W. Hill

                                 Parsley

                                 TP 136/1 of 21.3.2007

                                    Phaseolus coccineus L.

                                 Runner bean

                                 TP 9/1 of 21.3.2007

                                    Phaseolus vulgaris L.

                                 Dwarf French bean and Climbing French bean

                                 TP 12/4 of 27.2.2013

                                    Pisum sativum L. (partim)

                                 Wrinkled pea, Round pea and Sugar pea

                                 TP 7/2 Rev. 2 of 15.3.2017

                                    Raphanus sativus L.

                                 Radish, Black radish

                                 TP 64/2 Rev. of 11.3.2015

                                    Rheum rhabarbarum L

                                 Rhubarb

                                 TP 62/1 of 19.4.2016

                                    Scorzonera hispanica L.

                                 Scorzonera or Black salsify

                                 TP 116/1 of 11.3.2015

                                    Solanum melongena L.

                                 Aubergine or Egg plant

                                 TP 117/1 of 13.3.2008

                                    Spinacia oleracea L.

                                 Spinach

                                 TP 55/5 Rev. 2 of 15.3.2017

                                    Valerianella locusta (L.) Laterr.

                                 Corn salad or Lamb’s lettuce

                                 TP 75/2 of 21.3.2007

                                    Vicia faba L. (partim)

                                 Broad bean

                                 TP Broadbean/1 of 25.3.2004

                                    Zea mays L. (partim)

                                 Sweet corn and Pop corn

                                 TP 2/3 of 11.3.2010

                                    Solanum habrochaites S. Knapp & D.M. Spooner; Solanum lycopersicum L. x Solanum habrochaites S. Knapp & D.M. Spooner; Solanum lycopersicum L. x Solanum peruvianum (L.) Mill.; Solanum lycopersicum L. x Solanum cheesmaniae (L. Ridley) Fosberg; Solanum pimpinellifolium L. x Solanum habrochaites S. Knapp & D.M. Spooner

                                 Tomato rootstocks

                                 TP 294/1 Rev. 3 of 21.3.2018

                                    Cucurbita maxima Duchesne x Cucurbita moschata Duchesne

                                 Interspecific hybrids of Cucurbita maxima Duchesne x Cucurbita moschata Duchesne for use as rootstocks

                                 TP 311/1 of 15.3.2017

                     ANNEX II
                     List of species referred to in Article 1(2)(b) which are to comply with UPOV test guidelines (4)

                                    Scientific name

                                    Common name

                                    UPOV guideline

                                    Brassica rapa L.

                                 Turnip

                                 TG/37/10 of 4.4.2001

               (1)  The text of these protocols can be found on the CPVO web site (www.cpvo.europa.eu).

               (2)  The text of these guidelines can be found on the UPOV web site (www.upov.int)

               (3)  The text of these protocols can be found on the CPVO web site (www.cpvo.europa.eu).

               (4)  The text of these guidelines can be found on the UPOV web site (www.upov.int).


title: Council Directive (EU) 2020/1756 of 20 November 2020 amending Directive 2006/112/EC on the common system of value added tax as regards the identification of taxable persons in Northern Ireland

text:
                  25.11.2020

                  EN

                  Official Journal of the European Union

                  L 396/1

         COUNCIL DIRECTIVE (EU) 2020/1756
         of 20 November 2020
         amending Directive 2006/112/EC on the common system of value added tax as regards the identification of taxable persons in Northern Ireland
         THE COUNCIL OF THE EUROPEAN UNION,
         Having regard to the Treaty on the Functioning of the European Union, and in particular Article 113 thereof,
         Having regard to the proposal from the European Commission,
         After transmission of the draft legislative act to the national parliaments,
         Having regard to the opinion of the European Parliament (1),
         Having regard to the opinion of the European Economic and Social Committee (2),
         Acting in accordance with a special legislative procedure,
         Whereas:

                     (1)

                     The United Kingdom withdrew from the European Union on 31 January 2020 on the basis of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (‘the Withdrawal Agreement’). The Withdrawal Agreement provides for a transition period that is to end on 31 December 2020. Until that date, the provisions of Union law on value added tax (‘VAT’) are to be applicable to and in the United Kingdom. After that transition period, the provisions of Union law on VAT are to no longer apply to or in the United Kingdom.

                     (2)

                     However, in accordance with Article 8 of the Protocol on Ireland/Northern Ireland (‘the Protocol’), which forms an integral part of the Withdrawal Agreement, provisions of Union law on VAT as listed in Annex 3 to the Protocol concerning goods are to continue to apply in Northern Ireland (3) after the transition period so as to avoid a hard border between Ireland and Northern Ireland.

                     (3)

                     Therefore, taxable persons and certain non-taxable legal persons will be subject to provisions of Union law on VAT for transactions in goods in Northern Ireland, whereas they will be subject to the provisions of United Kingdom legislation on VAT for all other transactions in the United Kingdom, including in respect of Northern Ireland.

                     (4)

                     For the proper functioning of the Union VAT system, it is essential that a distinct VAT identification number is granted to every taxable person who carries out supplies of goods in Northern Ireland and every taxable person, or non-taxable legal person, who makes intra-Community acquisitions of goods as listed in points (a), (b) and (c) of Article 214(1) of Council Directive 2006/112/EC (4), or to a taxable person in view of the use of the optional special schemes for taxable persons making distance sales of goods.

                     (5)

                     Therefore, distinct VAT identification numbers with a specific prefix should be introduced in Northern Ireland to distinguish between taxable persons and non-taxable legal persons whose transactions in goods located in Northern Ireland are subject to provisions of Union law on VAT, on the one hand, and persons carrying out other transactions for which they are identified for VAT purposes in the United Kingdom.

                     (6)

                     As a rule, prefixes of VAT identification numbers in the Union are based on ISO code 3166 – alpha 2 – by which the Member State of issue may be identified. Northern Ireland has no specific code under that system, but the ISO foresees the possibility to use X-codes for territories that do not have a specific code. Therefore, it is appropriate to propose the code ‘XI’ for Northern Ireland.

                     (7)

                     Directive 2006/112/EC should therefore be amended accordingly,

               HAS ADOPTED THIS DIRECTIVE:

            Article 1
            In Article 215 of Directive 2006/112/EC, the following paragraph is added:

               ‘The prefix “XI” shall be used for Northern Ireland’.

            Article 2

               1.   Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 31 December 2020. They shall immediately inform the Commission thereof.
               When Member States adopt those measures, they shall contain a reference to this Directive or shall 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 measures of national law which they adopt in the field covered by this Directive.

            Article 3
            This Directive shall enter into force on the day following that of its publication in the Official Journal of the European Union.

            Article 4
            This Directive is addressed to the Member States.

            Done at Brussels, 20 November 2020.

                  For the Council

                  The President

               M. ROTH

            (1)  Opinion of 11 November 2020 (not yet published in the Official Journal).

            (2)  Opinion of 29 October 2020 (not yet published in the Official Journal).

            (3)  Subject to the democratic consent in Northern Ireland to the continued application of Articles 5 to 10 referred to in Article 18(1) of the Protocol.

            (4)  Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ L 347, 11.12.2006, p. 1).