Infringement proceedings against Italy in connection with VAT refunds


Under the Italian VAT refund procedure, a non-established taxpayer requesting a VAT refund via its Italian VAT return must submit a bank or insurance guarantee covering the full amount of the VAT refund. The guarantee must be submitted for each VAT refund request and must be maintained for Read More »

A day in Milano


I did not want to go by train because I cannot work in the train. The flight to Milano is short, the airport clean and clearly laid out. However I am not willing to pay EUR 90 for a taxi drive to the city, the train ticket Zurich-Milano costs less. So I take the train. It is difficult to buy a ticket because of the 4 ticket machines, two don’t work. The queues are accordingly long and I miss my connection.Read More »

Tour Operators Margin Scheme (TOMS)


The European Court of Justice published its judgement in an infringement procedure where the EU Commission brought several EU Member States to the Court for failure to comply with their obligations under the EU VAT Directive.

The actions relate to the special scheme for travel agents which is commonly referred to as TOMS (Tour Operators Margin Scheme) and which is relevant from an EU-wide VAT perspective. There has been some uncertainty Read More »

Italy – VAT rate increase to 22% postponed to 1 of October 2013


The Italian government decided to postpone the planned VAT rate increase from 21% to 22% from 1 July 2013 to 1 October 2013.

Italy – VAT grouping will not be possible as expected


The resigning Italian Government did not approve the tax reform package. Due to the fact that the election will take place on February 24 and 25 in Italy, it is likely that the resigning Government will let the draft Decree expire. For the time being, VAT grouping according to article 11 of the VAT Directive will be not introduced in Italy.

Risk of PE (permanent establishment) for VAT in Italy


A new minefield is created around fixed establishments for VAT purposes, even if there is an extensive case-law of the European Court of Justice to determine whether such an establishment exist or not. The main elements of this legal analysis were also embedded into the EU VAT Regulations, however, some of the member states tend to interpret now these rules more widely as before. Read More »

How to decline cost of bank guarantee in Italy – “Statuto dei diritti dei contribuenti” – Law no. 212/2000


In some cases such as claims for VAT refund, tax payers have to provide a bank guarantee to the Italian Tax Authority. This is not always easy from an administrative point of view (as it has to be bank in Italy) and never really cheap. “Statuto dei diritti dei contribuenti” – Law no. 212/2000 protects tax payers’ right in relation to the incurred bank guarantee cost. A specific decree, implementing the operating rules for the refund/repayment should have been issued a long time. Read More »

VAT Warehouse in Italy – DEPOSITI IVA IN ITALIA – Changes in 2012


The VAT warehouse is a simplification regime provided for by art. 50-bis of Law Decree n. 331/1993, implementing art. 157 to 160 of Directive 2006/112/EC. In order to benefit from the VAT warehousing simplification regime, goods have to be physically introduced into the warehouse, a “virtual” storage of goods is not allowed Read More »

Italy – increase of the standard VAT rate to 23% on 1 of July 2013


Italy intends to increase the standard rate from 21% to 23% and the reduced rate from 10% to 12% as of July 1, 2013. The plan is however that this should be temporary increase only and the VAT rate should decline to 22% as from January 1, 2014 again.

Italy – new penalties as of August 1, 2012 for incorrect or missing entries in VIES (VAT Information Exchange System)


The Italian Tax Authorities will impose penalties in case of EU supplies if the Italian customer’s number is not reported in the VIES. Therefore it is recommended to verify the VIES VAT registration number of your customers to avoid penalties equal to 100% of the VAT amount due.