On 12 June 2015, the European Commission issued a proposal for a Council Implementing Decision authorizing Italy to introduce a special measure derogating from Articles 206 and 226 of the VAT Directive (2006/112/EC). The special measure is the introduction of a split-payment system for goods and services supplied to Italian public bodies, including government bodies, public hospitals and universities. Under the system, VAT is charged normally, but the payment is split where the taxable amount is paid to the supplier and VAT is paid directly to a blocked VAT bank account of the Treasury. The purpose of the measure is...