Fleet News

VAT pressure on Italy

THE European Commission is piling legal pressure on the Italian government to make it abolish restrictions on the right to deduct VAT for company vehicle purchases and related services or fuel.

Rome is already facing a ‘critical opinion’ from a European Court of Justice (ECJ) advocate general over the issue, which could be confirmed by the full court.

But in an unusual move, the commission is threatening follow up legal action, even if the ECJ finds the Italian VAT rebate restrictions legal in the older case.

Brussels says Italy’s claim its system only temporarily breaks the EU’s sixth VAT directive is bogus – it has operated since 1979.

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