Press Release: VAT – Infringement proceedings against Austria, France and Italy

The European Commission has issued a number of reasoned opinions addressed to Austria (over its application of the reduced rate to supplies of goods in connection with the treatment of waste water and refuse and over its levying of VAT on cars leased in other Member States), France (over the application of a reduced rate to certain services supplied by lawyers) and Italy (over the extension of the fiscal amnesty, the "condono fiscale", to VAT debts incurred in 2002). These reasoned opinions are the second stage of the infringement procedure under Article 226 of the EC Treaty. Unless the Member States concerned bring their legislation in compliance within two months of receipt of these opinions, the Commission may decide to refer these cases to the Court of Justice of the European Communities.