On 25th July 2019, the Commission published its monthly infringements package detailing the legal action it is pursuing against the Member States for breaches of EU law.
Relating to VAT, the following infringement proceedings have been taken:
- Italy: referred to the CJEU for its failure to address an illegal system of fuel exemptions used to power EU chartered yachts in the EU.
- Germany: referred to the CJEU for not correctly applying the EU value added tax (VAT) rules for the Farmer’s Flat Rate Scheme.
- Belgium: referred to the CJEU for the tax treatment of taxpayers investing in property abroad and failing to implement rules related to the calculation of rental income.
- Italy and Cyprus: sent reasoned opinions for not levying the correct amount of VAT on yacht leasings.
- Poland: sent a letter of formal notice for incorrectly exempting cash processing services, for instance, escorting of cash, preparing cash supplies for cash machines.
The Commission is fully committed to ensuring that EU law is applied properly and harmoniously throughout the Member States. Also in this month’s package, the Commission has taken further steps in its ongoing quest to stamp out unfair tax avoidance practices.