New operating procedures of VAT warehouses

Important innovations concerning VAT warehouses have been introduced with Law Decree n. 193/2016, with the aim of preventing possible frauds. Essentially, the regulation provides distinct rules for the removal of goods from a VAT warehouse depending on how they were placed therein. In some cases, VAT must still be paid through reverse charge, while in other cases, VAT shall be actually paid at the moment of removal of the goods, thus directly involving the warehouse keeper, who acts in the name and on behalf of the consignor. The new provisions can apparently imply some operating risks and, thus, nullifying the original reasons that led to the introduction of VAT warehouses. With this regard, it must be pointed out that after the fall of customs barriers between EU Member states (1 January 1993), VAT warehouses were introduced with the aim of increasing the trade of goods in Italy and make Italian economy become more competitive, by offering a logistic service and other related services that met the needs of simplification and reduction of tax burdens. The new regulations on VAT warehouses, introduced by Law Decree n. 193/2016 will come into effect on 1 April 2017. Therefore, businesses shall be prepared to face the new operating procedures in the most accurate way possible, in order to avoid possible objections by controlling entities.

For further information, please contact Mario Spera.