Explanatory Memorandum to COM(2018)261 - Inclusion of the Italian municipality of Campione d’Italia and the Italian waters of Lake Lugano in the customs territory of the Union - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2018)261 - Inclusion of the Italian municipality of Campione d’Italia and the Italian waters of Lake Lugano in the customs territory of ... |
|---|---|
| source | COM(2018)261  |
| date | 08-05-2018 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
At Italy’s request, 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 concerning the general arrangements for excise duty 1 (the ‘excise Directive’) applies. The geographic location of the two territories 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. It therefore requests 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. It is proposed that this amendment should apply from 1 January 2019.
Italy considers that the inclusion of the Italian municipality of Campione d’Italia and the Italian waters of Lake Lugano 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 on the common system of value added tax 2 (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).
The proposal to amend the excise Directive and the VAT Directive is strictly linked to the amendment of the Union Customs Code. These amendments should therefore apply as from the same date. To ensure better management and administrative organisation, Italy pointed out that these amendments will have to enter into force on 1 January following their adoption and, in any case, not before 1 January 2019.
• Consistency with other Union policies
Changes to the excise Directive and the VAT Directive are a consequence of changes to Regulation (EU) No 952/2013 3 laying down the Union Customs Code.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
Article 113 of the Treaty on the Functioning of the European Union. This Article provides for the Council, acting unanimously in accordance with a special legislative procedure and after consulting the European Parliament and the Economic and Social Committee, to adopt provisions for the harmonisation of Member States’ rules in the area of indirect taxation.
• Subsidiarity (for non-exclusive competence)
The geographical scope of application of the excise Directive and of the VAT Directive is harmonised. Member States may not apply a different geographical scope.
• Proportionality
The proposed amendment does not go beyond what is necessary to address the issues at stake and, in that way, to achieve the Treaty’s objectives of a proper and effective functioning of the internal market.
This proposal complies with the principles of proportionality as set out in Article 5, paragraph 4 of the Treaty on the European Union.This amendment is based on a political decision of the Italian government. It has no impact on other Member States.
• Choice of the instrument
Council Directive.
• Explanatory documents (for directives)
The notification of transposition measures by Member States should not be accompanied by an explanatory document explaining the relationship between the components of the Directive and the corresponding parts of national transposition instruments as the changes relate to a single provision only in both the excise Directive and VAT Directive.