Press Release: VAT: infringement procedures against Italy and Sweden

The Commission has decided to bring Italy before the Court of Justice for extending tax amnesty on VAT to year 2002 ("condono"). The Commission has also sent Sweden a formal request to amend its rules concerning the reduced rate of VAT applied by Sweden to supplies, importations and intra-Community supplies of audio books. Currently Sweden applies a rate of 6 % instead of the normal rate of 25 % to supplies of audio books. According to the Commission there is however no legal base for applying such a reduced rate. This request takes the form of a "reasoned opinion", the second stage of the infringement procedure laid down in Article 226 of the EC Treaty.