Best Italia Economy Portal: The EU rejects the norm on VAT, new tile on the government

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The EU rejects the norm on VAT, new tile on the government

No to the” reverse charge “. For Italy, a grain that is worth 700 million. Risk increase for gasoline, but Renzi reassures: there will be no rise

05/22/2015

correspondent from Brussels

Conti fragile really, just a “no” to Brussels and opens a hole for more than 700 million in the Stability Law written by the government Renzi. As expected, the European Commission announced that it did not want to grant an exception to the VAT Directive to introduce the reverse charge system for suppliers of the supermarket industry. This, for “there is sufficient evidence that this measure will help to combat fraud.”

The effect of the waste will be almost immediate. The government had in fact safeguarded for tackling a possible (and actual time) European rejection of the “reverse charge”, providing for the increase in excise duties for petrol and diesel to start after 30 June. If you do not find another solution, it will only have to surrender to pay the more expensive gasoline by July 1, right on the eve of his departure for the holidays. But sources MEF ensure that the increase in excise duties on fuels, expected as the safeguard clause, it clicks. It also assures the prime minister, host to a Kill on La7.

An alternative could be the use of the “treasure” sidelined with some savings accounts. The dowry is, however, already been redirected to remedy the effects of the Constitutional Court ruling on pensions.

The “reverse charge” is a mechanism that involves moving of tax obligations related to VAT on buyers and not on who is selling as they normally do. The main objective of the bill “reverse charge” is to avoid VAT fraud.

How? No “reverse charge”

– The subject will invoice A to B.

– A collects VAT from B, it disappears and does not pay the tax ( 1 damage to the Treasury).

– B oblivious to everything (or is aware but does dumb) goes to reclaim VAT, more often than not succeeding (2nd damage to the Treasury). But Brussels says it is not enough to prevent evasion. Large retailers exults.

It remains the proceedings of the Commission on the request of the government to introduce a special measure for public entities that would have to pay VAT on a separate account instead provider. According to the executive, “it is still being analyzed.”

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