Tax Update – 11.10.2013 VAT On Goods’ Warehousing

1. INTRODUCTION

With a recent ruling the European Court of Justice has stated that goods' warehousing services can be included in those pertaining buildings when a specified portion of the of the warehouse is allocated to the exclusive use of the purchaser. The interpretation of the European judges, in line with the proposal of modification of the Rule 282/2011/EU, is clearly in contrast with the position assumed by the Italian Tax Agency so far.

2. VAT TERRITORIALITY ON SERVICES CONNECTED TO BUILDINGS

The European Directive 2008/8/EC, so called "Directive on services", has modified, with effects from January 1st 2010, the place where services become taxable for VAT. The Legislative Decree 18/2010 has enforced in the domestic law the modifications brought by the directive, redefining the territoriality's rules formerly included in the article 7 of the Republic Presidential Decree 633/1972 and in the article 40 of the Law Decree 331/1993.