VAT evasion, Italy worst in the EU. Cash cap at 10,000 euros – Corriere.it

Italy first in the EU in absolute terms for the non-collection of VAT: in 2020 the gap was 26.2 billion (20.8%). Followed by France with 14 billion in absolute value (8%), and Germany with 11.1 billion, equal to 4.8%. In percentage terms, Italy is preceded by Malta (24.1%) and Romania (35.7%). The figure emerges from the VAT report published by the European Commission. In 2019, the difference between the VAT collected and the VAT expected in Italy was 31.08 billion (in absolute terms the highest value) equal to 21.8%.

The numbers therefore bring Italy back into the spotlight of the Community as regards tax evasion. An issue also touched upon by Economy Commissioner Paolo Gentiloni as he presented today the new European strategy to increase VAT collections: Citizens are asking for fiscal fairness and strong action against tax fraud and tax evasion. And today’s proposals are a strong step towards these common goals.

Current VAT rules – said Gentiloni – lead to many transactions for short-term accommodation and passenger transport services provided through a platform that are not taxed, which means unfair treatment for hotels and traditional taxis. The proposal aims to eliminate this unequal treatment by making the platform responsible for collecting the VAT due where the supplier does not. The Commissioner refers to a number of proposals to improve the e-invoicing system.

Gentiloni then referred to the imminent EU exam on the Italian maneuver: We are working a bit on the Italian budget law, we will adopt an opinion next week. Our principles for us are electronic invoicing and the fight against evasion are high priorities.

Another point where EU and Italian government policies cross paths is the limit on the cash ceiling. The EU Council has agreed on a maximum limit of 10,000 euros, implementing the indication given by the Commission in July. Customer verification measures are also envisaged for cryptocurrency operators when they carry out transactions over 1,000 euros. Rules also for those who trade in precious metals, precious stones and cultural goods, as well as jewelers, watchmakers and goldsmiths.