Italy Introduces Changes to Warehouse VAT Payments, Frequent Exporters Scheme

Italy introduced two value-added tax-related measures that are expected to be signed into law by Dec. 25, including a measure impacting VAT payments on fuel products in VAT warehouses and a change to the country’s frequent exporters’ scheme, KPMG said in a Nov. 14 alert.

The first measure introduced VAT payment obligations for the required removal of gas and diesel products destined for use as car fuel from “fiscal warehouses that are also used as VAT warehouses,” KPMG said. Upon removal from the warehouse, the VAT payment on the goods is always due unless the goods were removed by an operator who meets the country’s “trustworthiness” requirements and who files an “adequate guarantee” with the Italian Revenue Agency, the post said. VAT payments may also be waived if the goods being removed are owned by the warehouse-keeper and the warehouse has a storage capacity of more than 3,000 cubic meters. The changes will take effect Jan. 1, 2020.

The second measure bans purchases -- without VAT -- of gas and diesel fuel destined for use as car fuel under the country's “frequent exporters scheme.” The measure includes one exception that allows certain “operators” to still buy fuel products without VAT under the scheme, KPMG said. The rule officially took effect last month but is not enforceable until 60 days after the Oct. 27 enactment date, KPMG said.