|Author (Corporate)||European Commission|
|Series Details||COM (2019) 476|
Proposal presented on 16 October 2019 by the European Commission authorising Italy to continue to apply special measures for derogation from the provisions of the VAT Directive.
On 12 April 2019, Italy requested an extension of the derogation from Articles 168 and 26(1)(a) of the VAT Directive that it currently applies. In particular, Italy wishes to continue to derogate from Article 168 by limiting to 40% the right to deduct input VAT charged on expenditure related to motorised road vehicles not wholly used for business purposes. In addition, Italy wishes to continue to derogate from Article 26(1)(a) by exempting from VAT the use for private purposes of vehicles included in the assets of a taxable person’s business, where such vehicles are subject to a restriction of the right to deduct.
The authorisation for the derogating measures mentioned above was first granted by the Council of the European Union by means of Decision 2007/441/EC. Subsequently, the derogating measures were prolonged three times at Italy’s request in 2010, 2013 and 2016. The present request from Italy to prolong further the derogation until 31 December 2022 is based on the same grounds as those presented in the previous requests.
|Subject Tags||Value Added Tax [VAT]|
|Countries / Regions||Italy|
|International Organisations||European Union [EU]|