After Campione d'Italia was added to the Customs Territory of the EU as from 1 January 2020, finally more details are known on the local consumption tax that now applies there. Below we summarize what you need to know.
Previously we wrote that Campione d'Italia is no longer part of the Swiss Customs Territory and was added to the Customs Territory of the EU as from 1 January 2020 on. Although the Italian enclave remains outside the territorial scope of the EU VAT regulations, it was decided to introduce a local consumption tax (imposta locale sul consumo di Campione d'Italia, ILCCI), making an end to its “no VAT regime”. Where it was expected and planned that the Ministry of Economy and Finance of Italy would publish a decree to define the application modalities of this local consumption tax in April 2020, such was only published in the Official Gazette of 9 February 2021. Hereafter, we highlight the general rules that define the ILCCI.
What is subject to the tax?
The ILCCI applies to:
- supplies of goods and services provided by taxable persons in the Municipality to final consumers; as well as to
- the importation of goods by final consumers, including the importation of goods from the territory of the European Union.
Similarly, as in VAT regulations, the decree specifies various situations in which no ILCCI is due (e.g. exemptions and exclusions).
E-commerce sales into Campione d'Italia
Many companies wondered how e-commerce sales to final consumers located in the Municipality of Campione d'Italia would be dealt with.
The Decree clearly mentions that for sales of goods into the Municipality from Italy, other EU Member States or non-EU countries (like Switzerland), whereby the goods are transported or shipped by the supplier or by third parties on its behalf in favor of final consumers resident or domiciled in the municipality, the tax is payable by said final consumer.
Therefore, e-commerce sales should in principle not trigger any registration obligation for foreign companies in Campione d'Italia.
Import of goods into Campione d'Italia by final consumers
The ILCCI relating to goods imported by final consumers, is ascertained, settled and collected by the Customs Office competent for the Municipality of Campione d'Italia.
Similarly, as in other countries, a low value consignment relief is in place and exemptions may apply for importation of goods carried in the personal baggage of residents.
Interestingly, the final consumer might also avoid paying ILCCI if he can proof that the goods have been definitively subject to VAT in Italy or in another EU Member State.