Italy reviews VAT warehouse rules
- Jul 2, 2013 | Richard Asquith
Italy has asked for an EU preliminary ruling on the details of providing a VAT exemption on goods held in a VAT warehouse.
VAT warehouses enables companies to hold stock in the EU which has not yet been cleared through customs for free circulation. This includes no payment of customs duties and import VAT. The European Union VAT Directive sets the rules for the operation of such duty and Italian VAT suspension holdings.
Italy has raised the scenario where VAT has been incorrectly collected on goods which should have been subject to the reverse charge – thus undermining VAT neutrality.