ITALY: EU DIGITAL VAT DIRECTIVE IMPLEMENTATION

UNCLAS ROME 002317

SIPDIS


SENSITIVE

STATE FOR EUR/ERA AND EUR/WE
COMMERCE FOR ECOM/ITA/TD/OITEC
TREASURY FOR OASIA

E.O. 12958: N/A
TAGS: ETRD EFIN IT EUN
SUBJECT: ITALY: EU DIGITAL VAT DIRECTIVE IMPLEMENTATION

REF: STATE 42548

(U) SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE
ACCORDINGLY. NOT FOR INTERNET DISTRIBUTION.


1. (U) THIS CABLE RESPONDS TO REFTEL REQUEST FOR
INFORMATION ON ITALY'S IMPLEMENTATION OF THE EU DIGITAL
VAT DIRECTIVE. INFORMATION WAS OBTAINED FROM LEGISLATIVE
OFFICE OF THE ITALIAN MINISTRY FOR EU AFFAIRS.


2. (SBU) ITALY HAS NOT ENACTED THE EU DIGITAL VAT
DIRECTIVE. EU MINISTRY OFFICIALS DO NOT EXPECT ITALY TO
MEET THE JULY 2003 DEADLINE. THE DIRECTIVE IS NOT
LIKELY TO BE ENACTED BEFORE SEPTEMBER 2003. DISCUSSION
WILL BE LIMITED TO GOI ENTITIES, AND THERE WILL NOT BE
PUBLIC HEARINGS.


3. (SBU) OFFICIALS IN THE TAX POLICY DEPARTMENT OF THE
FINANCE MINISTRY ARE DEVELOPING A DRAFT. ACCODING TO
OUR EU MINISTRY CONTACTS, THE FINANCE MINISTRY IS
RELUCTANT TO PROVIDE INFORMATION OUTSIDE THE GOI. WE
HAD ALREADY APPROACHED THE FINANCE MINISTRY, BUT HAVE
NOT RECEIVED A RESPONSE.


4. (SBU) EU MINISTRY OFFICIALS OFFERED TO PROVIDE US
WITH ALL THE SUPPLEMENTAL INFORMATION WE REQUESTED ONCE
THE FINAL DRAFT REACHES THEIR OFFICES. THE EU MINISTRY
WILL BE RESPONSIBLE FOR IMPLEMENTING THE DIGITAL VAT
DIRECTIVE.

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2003ROME02317 - Classification: UNCLASSIFIED