The Proof For Exchanges Within The EU: Tax Update - 04.03.2013

1. INTRODUCTION

With a recent interpretation the Italian Tax Agency has disclosed its approach on the elements that sellers have available to prove the actual physical transfer of goods to the member state of the purchaser.

2. THE PRINCIPLE OF TAXATION IN THE COUNTRY OF DESTINATION

The temporary regimen for EU exchanges has been enforced starting from 1993 by the Directive 91/680/CE for the achievement of the an internal market and the removal of customs.

The adopted measures aim essentially to facilitate the free circulation of goods with the European Community.

In particular, for exchanges of goods within the Union between VAT subjects, it has been enforced the principle of taxation in the country of their destination, therefore those exchanges are exempted from taxation in the country of origin.