The Italian Supreme Court, in recent decision (decision No. 5142/2016, filed on 16 March 2016) provided important indications on the conditions to be met to exempt from VAT IC supplies of goods and, in particular, on the evidence which shall be given by the supplier.
In particular, the conditions to be met, as clarified by the Supreme Court are the following:
- the transaction shall be carried out between two economic operators;
- the supply of goods shall be effected for consideration;
- the right to dispose of the goods as owner shall be transferred from the supplier to the customer;
- the goods shall be actually dispatched or transported from one Member State to another;
- the supplier who acted in good faith shall submit evidence establishing, at first sight, his right to the exemption. In particular, the supplier shall prove that the goods have been dispatched or transported to another Member State.
Such good faith was excluded by the Supreme Court in case of supply of new vehicles holding provisional Italian matriculation, allowing the vehicle only to circulate within the Italian territory, whereby the supplier was not able to prove that the vehicles were actually transported to another Member State. As a consequence, in such a case, the Supreme Court disregarded the VAT exemption regime.