italy: new vat rules on intra-eu transfer of goods for valuations and work upon
TRANSCRIPT
August 2015
1 VAT in Italy
Historically, Italian VAT rules pertaining to intra-EU transfer of goods for valuations and works upon are not fully in line with provisions stated by art. 17 (2) (f) of Directive 2006/112/CE. The European Court of Justice, by
judgement 6 March 2014, joined cases C-606/12 and C-607/12, Dresser-Rand, confirmed the lack of conformity. Few days ago, national rules have been changed in order to be fully aligned with the EU principles. More in detail, according to the previous version of the law: a) the introduction into the Italian
territory of goods coming from another EU member State, performed by a VAT taxpayer in that EU member State, for being object of surveys (valuations), processing and similar
works on goods, do not qualify as a deemed intra-EU purchase of goods in Italy whether, after being evaluated or worked upon, goods are dispatched outside Italy (i.e. in the EU Member State they came from, in another EU member State or outside the EU);
b) the transfer, by an Italian VAT taxpayer, from Italy to another EU member State, of goods for being object of surveys, processing and similar works on goods, do not qualify as a deemed intra-EU supply of goods.
According to the new version of the law, the simplification is granted only in case the goods, after being evaluated or worked upon, return back in the member State they come from.
As far as transfer of goods from another EU member State into Italy is concerned, new provisions imply that the EU VAT taxpayer is now requested to register for VAT purposes in Italy in all cases where goods do not come back in the EU member State they come from. This particularly requires an immediate action for those EU entities who benefitted from the previous, more favorable regime in so far. As far as transfer of goods from Italy to another EU member State is concerned, new provisions, in case goods after the
evaluation/processing do not come back in Italy, could be considered more favorable than previous ones, because they are now relevant for benefitting from the “usual exporter” regime. New rules will enter into force on 18 August 2015.
VAT in Italy New rules
Intra-EU transfer of goods for valuations and work upon
We recommend companies in your country review their transfers of goods to/from Italy, in order to understand whether and in which manner they are affected by new rules.
Please take into due consideration that, in general, the level of administrative penalties in Italy, in case of tax violations, is high if compared with the majority of other EU member States.
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Simonetta La Grutta
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Mario Spera
Principal
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