Press Release: VAT – The Commission pursues infringement proceedings against Italy and Portugal

The European Commission on 7 July 2005 decided to send a formal request to Italy to change its law that limits the right of traders to deduction of VAT in respect of mobile phones services. The request is in the form of a reasoned opinion, the second stage of the infringement procedure laid down in Article 226 of the EC Treaty. In addition the European Commission decided to refer Italy to the Court of Justice concerning the tax amnesty which it applies in the area of VAT and to refer Portugal to the Court because the VAT rate applied to tolls on the two bridges over the river Tagus in Lisbon is not in conformity with Community law.