Italy changes proof on VAT zero rating of EU exports

Wed 24th Apr 2013

Italy has loosened the documentary requirements for Italian Value Added Tax zero rating of inter-community supplies (exports to another EU).

Sales (despatches) of goods from one EU country to another are ordinarily VAT exempt.  However, certain conditions must be met, including:

  • The vendor and acquirer must be EU VAT registered
  • The goods must leave the country of the seller for the country of the acquirer
  • There must be some documentary proof of the goods’ departure (e.g. proof of transport).

The Italian tax office has recently said that it will accept the CMR (International Consignment Note/Lettre de Voiture International) signed by the vendor as proof of the third requirement above.  This includes providing the electronic CMR.