Directive (EU) 2019/475 amending Directives 2006/112/EC and 2008/118/EC as regards the inclusion of the Italian municipality of Campione d’Italia and the Italian waters of Lake Lugano in the customs territory of the Union

Summary:

Council Directive of 18 February 2019 regarding the inclusion of the Italian municipality of Campione d'Italia and the Italian waters of Lake Lugano in the customs territory of the Union, and in the territorial application of Directive 2008/118/EC concerning the general arrangements for excise duty.

Further information:

In May 2018, following a request from Italy, the European Commission proposed that the Italian municipality of Campione d’Italia and the Italian waters of Lake Lugano should be included in the EU customs territory and in the territory of the Union to which Directive 2008/118/EC (the Excise Directive) applies, as from 1 January 2019.

Background:

The geographic location of the Italian municipality of Campione d’Italia and the Italian waters of Lake Lugano as Italian exclaves within the territory of Switzerland has historically justified their exclusion from the EU customs territory but Italy considers this exclusion to be no longer necessary, in particular because otherwise Switzerland now wishes to include them within its customs territory. Italy has therefore requested that these two territories be brought within the scope of the EU customs territory and the territory of the Union to which the Excise Directive applies.

Italy considers that the inclusion of the two territories in the EU customs territory and in the scope of the Excise Directive is not incompatible with maintaining the application of a special tax system on value added tax and, in particular, with continuing to exclude these territories from the territorial application of Directive 2006/112/EC (the VAT Directive). This is essential to ensure a level playing field with the surrounding Swiss economic context through the application of local indirect taxation in line with Swiss value added tax.

The inclusion of these territories in the EU customs territory and the territory of the Union to which the Excise Directive applies therefore only requires a formal change to the VAT Directive, moving them from Article 6(2) (territories not forming part of the EU customs territory excluded from the territorial application of the VAT Directive) to Article 6(1) (territories forming part of the EU customs territory excluded from the territorial application of the VAT Directive).

Official

EUR-Lex: COM(2018)261: Proposal to amend Directives 2006/112/EC and 2008/118/EC as regards the inclusion of the Italian municipality of Campione d’Italia and the Italian waters of Lake Lugano in the customs territory of the Union https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2018:261:FIN

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