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Italy warned by EU for failing on VAT 4 Quick Fixes

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:

  1. Standardise information required to prove entitlement to zero-rating VAT on intra-community supplies and that the transport delivery actually took place;
  2. Harmonise the rules on call-off stock VAT registration simplifications
  3. Clarify the rules on determining where the transport element and therefore VAT liability should be allocated on cross-border movements
  4. 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.

EU VAT reforms

Reform (click for details) Update
2025 VAT registration thresholds equivalence foreign businesses On track
Virtual events VAT rule changes Agreed
2024 Payment providers' seller transaction reporting and bookkeeping obligations On track
Digital Reporting Requirements including EU e-invoicing harmonisation Implementation of VAT in the Digital Age?
2023 DAC 7 - marketplace reporting harmonisation On track
Financial Services VAT exemption reform proposals Consultation complete; proposal 2023
Tour operator margin scheme VAT reforms EC undertaking fresh review
2022 EU definitive VAT system On hold
EU reduced VAT rate freedoms Enter into force 6 April 2022
IOSS reforms to prevent double taxation Proposals early 2022
VAT in the Digital Age proposals On track for 16 Nov 2022 publication
Single VAT Registration in the EU - extension of OSS On track for 16 Nov 2022 publication
Proposal for VAT treatment of the platform economy On track for 16 Nov 2022 publication
VAT Gap Initiative Q3 2022
2021 One-Stop-Shop (OSS) single EU VAT return In effect since 1 July 2021
Ending €22 import VAT exemption; new IOSS return In effect since 1 July 2021
Marketplace deemed supplier EU VAT reforms In effect since 1 July 2021
2020 EU four Quick Fixes for VAT In effect
Tax authorities anti-VAT fraud cooperation In effect
Tax Action Plan - 25 VAT and other tax reforms roadmap See 'VAT in the Digital Age' and others
2019 Simplification of e-services VAT compliance and thresholds In effect
Single and multi-use vouchers In effect
2018 Lower e-book and publications VAT rates In effect, although not all EU states have adopted the option
EU Generalised Domestic Reverse Charge VAT Mechanism In effect, although no country has adopted this voluntary option
2015 B2C electronic services VAT reforms - MOSS return In effect

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