In particular, art. 50-bis of Law Decree no. 331/1993 (the provision regulating VAT warehouse simplification in Italy) has been amended as follows:
a) at paragraph 4:
1) letter c) is replaced by the following wording:
«c) supplies of goods with introduction into a VAT warehouse»;
2) letter d) is cancelled;
b) paragraph 6 is completely rewrote, in relation to the procedure in order to withdraw the goods for a subsequent sale in the Italian territory.
The above mentioned legislative changes, and their effects, can be summarised as follows:
- the difference between domestic sales with introduction into the VAT warehouse to non-established taxpayers (with EU VAT number) and domestic sales with introduction into the VAT warehouse to a taxpayer established in Italy will be no longer applicable. In other words it would be possible to carry out domestic sales with introduction into the VAT warehouse (and, as a consequence, to defer VAT payment) to any taxpayer, regardless its own Country of establishment, VAT number and disregarding the nature (i.e commodity code) of the goods to be introduced;
- Italian VAT due upon the withdrawal of the goods from the VAT warehouse that follows a local supply of goods with introduction in such a VAT warehouse (please see above), in order to carry out a subsequent sale in the Italian territory, will be no longer accounted through the reverse charge mechanism. In particular, VAT warehouse keeper, in the name and on behalf of the taxpayer that withdraws the goods, will have to pay the VAT due on those goods to be withdrawn. This payment could not be offset with credits of other taxes (i.e. it will be not possible to apply for the “compensazione orizzontale”) and must be executed within the 16th day of the month following the withdrawal of such goods. In order to exercise the right to deduct, the taxpayer that withdraws the goods will have to issue a self-invoice to be registered only in the VAT purchases ledger. More in detail:
– the VAT warehouse keeper will be jointly and severally liable for VAT payments with the taxpayer that withdraws the goods;
– those taxpayers that qualify as “usual exporters” will have the right to withdraw from the VAT warehouse without VAT (up to the amount of the available plafond), provided that a proper declaration of intent (i.e. “dichiarazione di intento”) is submitted to the Italian tax authorities;
– in relation to the applicable penalties, in case of omitted or late VAT payment, art. 13 of Legislative Decree. n. 471/1997 will be applied (from 1% to 30% of VAT, on the basis of the days of delay), while in the case of withdrawal with the use of the “plafond”, in case the relevant conditions to apply for that simplification are not met, the penalty provided for by art. 7, paragraph 4, of the Decree will apply (i.e. from 100% to 200% of the VAT). For this last penalty, only the taxpayer withdrawing the goods will be liable before the Italian tax authorities;
- Italian VAT due upon the withdrawal of the goods from the VAT warehouse that follows an importation of goods with introduction in such a VAT warehouse, in order to carry out a subsequent sale in the Italian territory, will be accounted through the reverse charge mechanism, upon submission of a financial guarantee. Relevant practicalities related to the financial guarantee will be defined through a future Decree of the Ministry of finance. Such a provision, that is very similar to the one currently in place, has a lack of coordination with the provision concerning import of goods with introduction into a VAT warehouse. In this respect, further clarifications are expected. It shall be noted that in the interim period before the issuance of the above-mentioned Decree, VAT will be due according to the procedure described at point 2 above;
- in case of introduction of goods into a VAT warehouse as a consequence of an intra-Community purchase, it seems that there are no changes to the current provision, as well as in respect of the calculation of the relevant taxable Basis;
The above-mentioned provisions are aimed to contrast tax evasion. In this sense, it is possible to find the rationale underlying the provision that require the VAT warehouse keeper (that is subject to the customs authorities control) to pay VAT on those withdrawal following a local supply of goods with introduction into the VAT warehouse.
However, they imply that economic operators should reconsider the use of the VAT warehouse. Indeed, the “cash-out” due to VAT payments (either at the time of importations for the interim period or at the time of domestic purchases) is only deferred at the time of withdrawal and not eliminated at all (in case goods are sold in Italy and the taxpayer that withdraws the latter does not use the so-called plafond for usual exporters).
For more Information please click HERE or contact Luca Lavazza, Partner VAT, Customs and Excise on +39 02 91605701 or email@example.com.
Bildquelle: Bärbel Jobst /pixelio.de