Italy fails to fully implement VAT EU reforms
In its monthly listing of EU law infringements, the European Commission has called out Italy for failing to fully implement the 2020 VAT Four Quick Fixes.
The four reforms were intended to harmonise and simplify the B2B VAT rules for cross-border transation reporting and treatment. They included:
- Standardise information required to prove entitlement to zero-rating VAT on intra-community supplies and that the transport delivery actually took place;
- Harmonise the rules on call-off stock VAT registration simplifications
- Clarify the rules on determining where the transport element and therefore VAT liability should be allocated on cross-border movements
- Additional substantive conditions for the application of the reverse charge on intra-community supplies of goods.
Commission sends Italy reasoned opinion
The Commission has sent Italy a reasoned opinion for failing to notify measures for the transposition into national law of Directive (EU) 2018/1910 (the VAT ‘Quick Fixes’ Directive). Member States were supposed to adopt and publish the necessary national provisions by 31 December 2019. If Italy does not act within the next two months, the Commission may decide to refer the case to the Court of Justice of the European Union and, ultimately, fines for persistent non-compliance.
