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European Commission Rejects Italian Request to apply the Reverse-Charge for Supplies of Goods to the Large Retail Sector

04 June 2015

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Approved Changes

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Italy-European Union

On 22 May 2015, the European Commission published a communication to the EU Council objecting to Italy's request for authorization from the Council to implement a special measure applying the VAT reverse-charge mechanism for supplies of goods to hypermarkets, supermarkets and food discounters in order to counter fraud. The measure was included as part of Italy's Stability Law for 2015, which entered into force 1 January 2015. According to the communication, the Commission objects to the request based on a number of grounds, including: The Commission doubts that such a broad application of the reverse charge mechanism to a high...