EN Official Journal of the European Union CE 88/64

(2004/C 88 E/0069)

WRITTEN QUESTION E-2066/03

by Maurizio Turco (NI) to the Commission

(20 June 2003)

Subject: Republic of Italy: application of the directive on VAT in connection with intra-Community supplies

With a view to transposing the directive on VAT in connection with intra-Community supplies, the Italian Government has introduced:

(a) a specific type of invoice (intra-EU invoice) designed to enable individuals to deduct VAT from goods purchased for professional purposes in another Member State;

(b) a specific annual VAT return.

This procedure also applies to individuals who purchase goods or services not with a view to their resale in their own Member State, but solely for personal use in the exercise of their profession.

Moreover:

— many retail outlets abroad and a number of e-businesses — such as Amazon — are unaware of the existence of intra-EU invoices and thus refuse to issue them, thereby preventing the purchaser from deducting VAT;

— the annual return required in Italy is so complicated that the cost of employing an accountant to draw up the return amounts to some EUR 100.

Accordingly, can the Commission state:

— whether it does not take the view that the relevant EU legislation (which provides for a specific type of invoice, although many shops are unaware of its existence and/or refuse to issue it), and the relevant Italian legislation (as regards the excessively costly annual return) infringe the principle of the single market?

— Whether there might be scope for measures designed to simplify these procedures?

Answer given by Mr Bolkestein on behalf of the Commission

(16 July 2003)

According to Article 22 of the 6th VAT Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment (1), every taxable person shall issue an invoice, or other document serving as an invoice, in respect of goods and services which he has supplied or rendered to another taxable person or to a non-taxable legal person.

In respect of intra-Community supplies of goods, this means that solely the Member State where the supplier is established is competent to determine the requirements of the invoice to be issued. Accordingly, the Member State of destination cannot impose any further requirement in order to enable individuals to deduct VAT on goods or services purchased in another Member State.

By means of his question, the Honourable Member alleges that the Italian Government would only accept a specific type of ‘intra EU’ invoice in order to allow taxpayers to deduct VAT on goods or services purchased in another Member State.

Should this be the case, the Commission will examine whether Italy is acting contrary to the principles established in the Sixth Directive, thus infringing Community law.

However, it should be pointed out that on 20 December 2001, the Council adopted Directive 2001/115/EC amending Directive 77/388/EEC with a view to simplifying, modernising and harmonising the conditions laid down for invoicing in respect of value added tax (2). This Directive will enter into force on 1 January 2004. It will abolish the present discrepancies between national requirements regarding the invoicing requirements.

The Honourable Member considers that the annual return required in Italy is very complicated.

According to Article 22 of the 6th VAT Directive, Member States can determine most of the rules regarding declarations, recapitulative statements and recapitulative declarations.

Provided that certain minimum requirements are respected, Member States are therefore free to determine the format and content of those declarations.

The Commission is, however, well aware that the complexity and diversity of VAT obligations in the different Member States may cause serious difficulties for traders, mainly for those who have to account for VAT in more than one Member State.

It has therefore carried out a comprehensive study on this issue, with a view to making appropriate proposals in 2004. This study is presently available on the Commission Website (under ‘Your Voice in Europe’): (3) for public consultation.

(1) OJ L 145, 13.6.1977. Directive as last amended by Council Directive 2002/92/EC of 3 December 2002, OJ L 331, 7.12.2002.

(2) OJ L 15, 17.1.2002.

(3) http://europa.eu.int/yourvoice/index_en.htm