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60-598: It connects Bernina Pass in Switzerland with Livigno in Italy. [REDACTED] This Graubünden location article is a stub . You can help Misplaced Pages by expanding it . This article on a location in the Province of Sondrio is a stub . You can help Misplaced Pages by expanding it . Livigno Livigno ( Italian: [liˈviɲɲo] ; local Lombard : Livígn [liˈʋiɲ] ; German : Luwin )

120-694: A frazione in the municipality of Livigno, is considered Europe's highest inhabited parish. Livigno was once a traditional and cultural village. Livigno is one of the few Italian villages which do not belong to the drainage basin of the Mediterranean Sea but to the Black Sea basin. Between 1965 and 1968, Swiss electric company Engadiner Kraftwerke AG , following an agreement with the Italian government, purchased land in Livigno in order to build

180-654: A value added tax identification number . The Thirteenth VAT Directive, adopted in 1986, allows businesses established outside the EU to recover VAT in certain circumstances. In 2006, the Council sought to improve on the Sixth Directive by recasting it. The recast of the Sixth Directive retained all of the legal provisions of the Sixth Directive but also incorporated VAT provisions found in other Directives and rearranged text order to make it more readable. In addition,

240-583: A One Stop Shop (OSS): Some goods and services are "zero-rated", though the term is not used in the Directive. The Directive refers to "exemptions" with or without refund of VAT charged at the preceding stage (see 2006/112/EC Article 110). In the U.K., examples include some food, books, and medications, along with certain kinds of transport. The Directive does provide for very limited mandatory "zero-rates", generally related to supplies if an international nature such as exports and international transportation where

300-430: A better economic situation and a higher number of inhabitants. Livigno has recently enjoyed one of Italy's highest birth rates (19.4 births per 1000 inhabitants). Livigno's economy is based on tourism, both in winter and in summer, and on its duty-free status, with goods sold at bargain prices. Livigno is 1,816 m (5,958 ft) above sea level . Livigno's main river is called Aqua Granda or Spöl . Trepalle ,

360-480: A duty to make their anti-abuse laws and rules compliant with the ECJ decisions, besides to retroactively re-characterize and prosecute transactions which meet those ECJ criteria. The accrual of an undue tax advantage may be even found under a formal application of the Sixth Directive and shall be based on a variety of objective factors highlighting that the "organization structure and the form transactions" freely chosen by

420-456: A grouping of companies or organisations who are permitted to treat themselves as a single unit for purposes related to the collection and payment of VAT. Article 11 of the Directive permits member states to decide whether to allow groups of closely linked companies or organisations to be treated as a single "taxable person", and if so, also to implement its own measures decided to combat any associated tax avoidance or evasion arising from misuse of

480-622: A higher rate, for example to 5% or 20%; however, EU VAT rules do not allow a reversal back to the zero rate once it has been given up. Member states may institute a reduced rate on a previously zero-rated item even where EU law does not provide for a reduced rate. On the other hand, if a member state makes an increase from a zero-rate to the prevalent standard rate, they may not decrease to a reduced rate unless specifically provided for in EU VAT Law (the Annex III of 2006/112/EC list sets out where

540-412: A living from agriculture and a little commerce. Smuggling was both widespread and not socially deprecated, being often the only way to survive in such a harsh environment. This generated some prejudice in the remaining population of Valtellina, where smuggling was also widespread, with the local proverb gent de cunfin, tücc' lader o asesin , or "border people, all thieves or murderers". Nowadays Livigno

600-461: A product charge the VAT and the customer pays it. When the customer is a business, the VAT is known as an "input VAT." When a consumer purchases the end product from a business, the tax is called the "output VAT." A value-added tax collected at each stage in the supply chain is remitted to the tax authorities of the member state concerned and forms part of that state's revenue. A small proportion goes to

660-606: A reservoir, the Lago di Livigno , for electricity production. Some houses and a church, "Chiesetta di Viera" lying in the valley where the reservoir would be built, had to be demolished. Livigno has a very cold, wet subalpine climate (Köppen: Dfc). Most of winter is spent below freezing and snow is abundant. Summer is the only part of the year in which temperatures above 10 °C (50 °F) are common, and frosts are less common (but still occur every year). Temperatures over 20 °C (68 °F) are rare. Saint Mary 's parish church

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720-488: A taxable transaction within the EU VAT scheme as a transaction involving the supply of goods, the supply of services, and the importation of goods. The Eighth Directive, adopted in 1979, focuses on harmonising the legislation of the member states with respect to turnover taxes—provisions on the reimbursement of value added tax to taxable persons not established on the territory of the country (the provisions of this act allow

780-442: A taxpayer of one member state to receive a VAT refund in another member state). Businesses can be required to register for VAT in EU member states other than the one in which they are based if they supply goods via mail order to those states over a certain threshold. Businesses established in one member state but receive supplies in another member state may be able to reclaim VAT charged in the second state. To do so, businesses have

840-460: A vendor in one member state sells goods directly to individuals and VAT-exempt organisations in another member state and the aggregate value of goods sold to consumers in that member state is below €100,000 or €35,000 (or the equivalent) in any 12 consecutive months, that sale of goods may qualify for a distance sales treatment. Distance sales treatment allowed the vendor to apply domestic place of supply rules for determining which member state collects

900-459: A week and other information both for residents and for tourists. On-line new media is also growing. An example is Senzaiva, an on-line cultural magazine. Its name means "without VAT ", referring to the special duty-free status of Livigno and of all cultural products. The local dialect has been categorized in a dictionary, funded by the local administration. This language variety is used locally in street names and in some other signs, as well as on

960-584: Is a value added tax on goods and services within the European Union (EU). The EU's institutions do not collect the tax, but EU member states are each required to adopt in national legislation a value added tax that complies with the EU VAT code. Different rates of VAT apply in different EU member states, ranging from 17% in Luxembourg to 27% in Hungary. The total VAT collected by member states

1020-630: Is a rich area, and the main activities are linked to tourism, especially as a ski resort . Many inhabitants of Valtellina visit once in a while to buy goods at substantially lower prices, especially tax-free gasoline, sometimes from as far as Sondrio . The tax free allowance for tourists applied here is the same as the one applied to travellers coming from any non EU country. The 2005 Union Cycliste Internationale mountain biking world championships were held here, from 28 August to 4 September. Despite its small size, there are many cultural organizations in Livigno. Some of these are: The mass-media sector

1080-415: Is a taxable transaction for consideration crossing two or more member states. The place of supply is determined to be the destination member state, and VAT is normally charged at the rate applicable in the destination member state; however there are special provisions for distance selling (see below ). The mechanism for achieving this result is as follows: the exporting member state does not collect VAT on

1140-593: Is a town, comune and a special-administered territory in the province of Sondrio , in the region of Lombardy , Italy , located in the Italian Alps , near the Swiss border. Livigno's first settlers were probably shepherds during the Middle Ages . The first documents called this area Vinea et Vineola . The name possibly comes from an old German word for " avalanche " which have always been frequent in

1200-548: Is entitled. For example, a book manufacturer in Ireland who purchases paper including VAT at the 23% rate and sells books at the 0% rate is entitled to reclaim the VAT on the purchase of paper, as the business is making taxable supplies. In countries like Sweden and Finland, non-profit organisations such as sports clubs are exempt from all VAT, and have to pay full VAT for purchases without reimbursement. Additionally, in Malta,

1260-399: Is established (or "belongs"), such as a fixed establishment where the service is supplied, the supplier's permanent address, or where the supplier usually resides. VAT is charged at the rate applicable in and collected by the member state where the place of supply of the services is located. This general rule for the place of supply of services (the place where the supplier is established)

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1320-482: Is located. There are special rules for determining the place of electronically delivered supply of services. The mechanism for collecting VAT when the place of supply is not in the same member state as the supplier is similar to that used for the Intra-Community Acquisitions of goods; zero-rating by the supplier and reverse charge by the recipient of the services for taxable persons. But if

1380-422: Is quite developed as well. In the 1980s a local radio, Radio Alteuropa , used to broadcast from Livigno, covering up to a wide part of the neighbouring Valtellina valley. The local monthly newspaper, Al Restel, was founded in the same period and it is still published today. Nowadays, most information is given by a TV channel, TeleMonteNeve, which broadcasts the city council's meetings, a news report three times

1440-451: Is required to charge VAT at the rate applicable in the importing member state. If a supplier provides a distant sales service to several EU member states, a separate accounting of sold goods in regards to VAT calculation was required. The supplier must then seek a VAT registration (and charge applicable rate) in each country where the volume of sales in any 12 consecutive months exceeds the local threshold. A special threshold amount of €35,000

1500-460: Is subject to several exceptions if the services are supplied to customers established outside the Community, or to taxable persons established in the Community but not in the same country as the supplier. Most exceptions switch the place of supply to the place of receipt. Supply exceptions include: Miscellaneous services include: The place of real estate-related services is where the real estate

1560-686: Is used as part of the calculation to determine what each state contributes to the EU's budget . German industrialist Wilhelm von Siemens proposed the concept of a value-added tax in 1918 to replace the German turnover tax however, the turnover tax was not replaced until 1968. The modern variation of VAT was first implemented by Maurice Lauré , joint director of the French tax authority, who implemented VAT on 10 April 1954 in France's Ivory Coast colony. Assessing

1620-643: The 2026 Winter Olympics in Milan and Cortina d'Ampezzo . In 2015, Livigno was home to the European Freeride Festival which ran between 31 January and 4 February. Since 2010 the International Livigno Chess Open has taken place, organized by the local chess club. It has attracted people from all over the world. Winner for 2010 was GM Igor Naumkin , in 2011 GM Sergey Volkov (both from Russia) and in 2012

1680-668: The Austrian Empire around 1840. It was then confirmed by the Kingdom of Italy around 1910, then by the Italian Republic and the European Economic Community in 1960. Although no VAT is paid, income taxes are, thus Livigno cannot be considered as a tax haven . The justification for such a status is the difficulty in reaching Livigno during winter, and the centuries-long history of poverty in

1740-642: The EU VAT area and specifies that VAT rates must be above a certain limit. It has several basic purposes: The VAT directive is published in all EU official languages. In 1977, the Council of the European Communities sought to harmonise the national VAT systems of its member states by issuing the Sixth Directive to provide a uniform basis of assessment and replacing the Second Directive promulgated in 1967. The Sixth Directive defined

1800-541: The Munt la Schera Tunnel . The third road connects to other parts of Italy through the Foscagno Pass , elevation 2,291 m (7,516 ft). Leaving Livigno for the rest of Italy, there is a customs checkpoint on the road staffed by officers of the Italian militarized Guardia di Finanza . Entering or leaving from or to Switzerland there are both Guardia di Finanza officers and Swiss Border Guards. Livigno once made

1860-440: The customs union , the differing VAT rates and the separate VAT administration processes resulted in a high administrative and cost burden for cross-border trade. For private individuals (not registered for VAT) who transport to one member state goods purchased while living or traveling in another member state, the VAT is normally payable in the state where the goods were purchased, regardless of any differences in VAT rates between

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1920-574: The EU VAT Mini One Stop Shop (MOSS) simplification scheme. If suppliers decided against the MOSS, registration was required in each Member State where business-to-consumer (B2C) supplies of e-services are made. With no minimum turnover threshold for the new EU VAT rules, VAT registration was required regardless of the value of e-service supply in each Member State. Since 1 July 2021, the MOSS has been extended to B2C goods and turned into

1980-458: The EU legislation provides for member states to determine their own detailed rules for group eligibility and operations. Italian tax legislation permits the operation of VAT Groups, All bodies (whether companies or limited liability partnerships ) within the group are jointly and severally liable for all VAT due. To comply with the rules introduced since 2006, from 1 October 2014, businesses needed to decide if they want to register to use

2040-519: The European Union in the form of a levy ("VAT-based own resources"). The co-ordinated administration of value-added tax within the EU VAT area is an important part of the single market . A cross-border VAT is declared in the same way as domestic VAT, which facilitates the elimination of border controls between member states, saving costs and reducing delays. It also simplifies administrative work for freight forwarders . Previously, in spite of

2100-531: The Italian GM Alberto David . These tournaments also proved successful, so that even the FIDE (World Chess Federation) has mentioned them. Sport is relevant also in terms of tourism. In Livigno people not only go and see sports competitions, which is a key component of so-called sport tourism , but also play outdoor or indoor sports. The local tourist offer covers the four seasons, so there's

2160-662: The Recast Directive codified certain other instruments including a Commission decision of 2000 relating to funding of the EU budget from with a percentage of the VAT amounts collected by each member state. Abuse criteria are identified by the jurisprudence of the European Court of Justice (ECJ) developed from 2006 onwards: VAT cases of Halifax and University of Huddersfield , and subsequently Part Service , Ampliscientifica and Amplifin , Tanoarch , Weald Leasing and RBS Deutschland . EU member states are under

2220-417: The VAT. This allows VAT to be charged at the rate applicable in the exporting member state. However, there are some additional restrictions to be met: certain goods do not qualify (e.g., new motor vehicles), and a compulsory VAT registration is required for a supplier of excise goods such as tobacco and alcohol to the U.K. If sales to final consumers in a member state exceeded €100,000, the exporting vendor

2280-403: The beginning of the 16th century as an offering for protecting the village against plague. Local scenery encompasses high peaked mountains and deep valleys. Livigno enjoys a special tax status as a duty-free area. Italian VAT (value added tax) is not paid. Although tax advantages for Livigno were recorded as far back as the sixteenth century, the current tax exemption was first introduced by

2340-439: The customer is located, and an alternative approach is therefore under negotiation where VAT is charged at the rate of the member state where the purchaser is located. There is a distinction between goods and services which are exempt from VAT and those which are subject to 0% VAT. The seller of exempt goods and services is not entitled to reclaim input VAT on business purchases, whereas the seller of goods and services rated at 0%

2400-481: The exemptions has a right of deduction (2006/112/EC Article 169). However, generally it was intended that the minimum VAT rate throughout Europe would be 5%. However, zero-rating remains in some member states e.g. Ireland, as a legacy of pre-EU legislation (permitted by Article 110). These member states have been granted a derogation to continue existing zero-rating but are not permitted to add new goods or services. An EU member state may uplift their domestic zero rate to

2460-608: The experiment as successful, France introduced it domestically in 1958. Following creation of the European Economic Community in 1957, the Fiscal and Financial Committee set up by the European Commission in 1960 under the chairmanship of Professor Fritz Neumark made its priority objective the elimination of distortions to competition caused by disparities in national indirect tax systems. The Neumark Report published in 1962 concluded that France's VAT model would be

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2520-550: The importer. VAT is generally charged at the border, at the same time as customs duty and uses the price determined by customs. However, as a result of EU administrative VAT relief, an exception called Low Value Consignment Relief is allowed on low-value shipments. VAT paid on importation is treated as input VAT in the same way as domestic purchases. Following changes introduced on 1 July 2003, non-EU businesses providing digital electronic commerce and entertainment products and services to EU countries are required to register with

2580-417: The official maps. Sport also plays an important role. In Livigno there are nearly 20 sport associations, most of them are supported by an association called Sporting Club. Many young athletes often end up with good results in their discipline (see Notable people below). There are two separate ski areas at Livigno, one on either side of the valley: Carosello 3000 (Vetta Blesaccia & Costaccia mountains),

2640-546: The other is the Mottolino area (Monte della Neve & Monte Sponda mountains) to the east. Livigno ski area: 115 km of piste (12 black runs, 37 red and 29 blue slopes). 31 lifts: (6-cableways 13-chairlifts, 11-ski lifts). Skiing season from late November until early May. At the 2006 Turin Winter Olympics , no less than eight Italian athletes came from Livigno. It will be used for snowboarding and freestyle skiing in

2700-493: The possibility not only of practising winter sports but also trekking, mountain biking, and since the lake was made navigable, water sports became another option. Furthermore, due to its 1,816 m (5,958 ft) above sea level, Livigno often hosts the training sessions of professional athletes of different disciplines, who come to the alpine resort to benefit from the high altitude. European Union Value Added Tax Area The European Union value-added tax (or EU VAT )

2760-441: The provision. The group members must be 'closely related' e.g. a principal company and its subsidiaries , and should register jointly for VAT purposes. VAT does not need to be levied on the costs of transactions undertaken within the group. Article 11 reads: After consulting the advisory committee on value added tax (hereafter, the ‘VAT Committee’), each Member State may regard as a single taxable person any persons established in

2820-401: The purchase of food for human consumption from supermarkets, grocers etc., the purchase of pharmaceutical products, school tuition fees and scheduled bus service fares are exempted from VAT. The EU commission wants to abolish or reduce the scope of exemptions. There are objections from sports federations since this would create cost and a lot of bureaucracy for voluntary staff. A VAT group is

2880-401: The purpose of limiting their tax burdens". It is in contrast with the constitutional right to the freedom of entrepreneurship . A domestic supply of goods is a taxable transaction where goods are received in exchange for consideration within one member state. One member state then charges VAT on the goods and allows a corresponding credit upon resale. An Intra-Community acquisition of goods

2940-401: The recipient of the services is not a taxable person (i.e. a final consumer), the supplier must generally charge VAT at the rate applicable in its own member state. If the place of supply is outside the EU, no VAT is charged. Goods imported from non-member states are subject to VAT at the rate applicable in the importing member state, whether or not the goods are received for consideration and

3000-461: The region. The various states wanted to ensure people would have an incentive to live in the area (so that they could claim it territorially). At the same time, the tax revenue from Livigno would have been negligible. Only three roads lead to the town. Two link to Switzerland , one through the Forcola di Livigno , elevation 2,315 m (7,595 ft) and open in summer only, and the second through

3060-442: The sale, but still gives the exporting merchant a credit for the VAT paid on the purchase by the exporter (in practice this often means a cash refund) ("zero-rating"). The importing member state "reverse charges" the VAT. In other words, the importer is required to pay VAT to the importing member state at its rate. In many cases a credit is immediately given for this as input VAT. The importer then charges VAT on resale normally. When

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3120-600: The simplest and most effective indirect tax system. This led to the EEC issuing two VAT directives, adopted in April 1967, providing a blueprint for introducing VAT across the EEC, following which, other member states (initially Belgium, Italy, Luxembourg, the Netherlands and West Germany) introduced VAT. The First Directive was concerned with harmonising the legislation of the member states with respect to turnover taxes. This act

3180-402: The tax authorities in the relevant EU member state, and to collect VAT on their sales at the appropriate rate according to the location of the purchaser. Alternatively, under a special scheme, non-EU and non-digital-goods businesses may register and account for VAT on only one EU member state. This produces distortions as the rate of VAT is that of the member state being registered to, not where

3240-494: The taxpayer are essentially aimed to carry out a tax advantage which is contrary to the purposes of the EU Sixth Directive. Such a jurisprudence implies an implicit judicial evaluation of the organizational structure chosen by the entrepreneurs and investors operating across multiple EU member states, in order to establish if the organization was appropriately ordered and necessary to their economic activities or "had

3300-407: The territory of that Member State who, while legally independent, are closely bound to one another by financial, economic and organisational links. A Member State exercising the option provided for in the first paragraph, may adopt any measures needed to prevent tax evasion or avoidance through the use of this provision. Requirements vary between EU states which have opted to allow VAT groups because

3360-401: The two states, and any tax payable on distance sales is collected by the seller. However, there are a number of special provisions for particular goods and services. The EU VAT system is regulated by a series of European Union directives . The aim of the EU VAT directive ( Council Directive 2006/112/EC of 28 November 2006 on the common system of value-added tax ) is to harmonize VATs within

3420-431: The valley – the last avalanche to hit the village was in 1951, causing seven deaths and damage to a dozen houses. Politically, Livigno has always followed Bormio 's history, although the relationships between the two communes have always been tense, Bormio being dominant and more populous than Livigno. Until the 1970s Livigno was a farming village. In recent decades, however, things have changed, and nowadays Livigno enjoys

3480-406: Was allowed if the importing member states fears that without the lower threshold amount competition within the member state would be distorted. Only Germany, Luxembourg and the Netherlands applied the higher €100,000 threshold. A supply of services is the supply of anything that is not a good . The general rule for determining the place of supply is the place where the supplier of the services

3540-462: Was erected at the end of the 19th century, on a previous church. The current building incorporated the previous one, which was left standing until the end of works, allowing church services to be carried out as usual. Other buildings of note are the Caravaggio church, with some ex voto paintings and a picture which is traditionally attributed to Caravaggio , and Saint Rocco church, built at

3600-410: Was to replace the multi-level cumulative indirect taxation system in the EU member states by simplifying tax calculations and neutralising the indirect taxation factor in relation to competition in the EU. The EU value-added tax is based on the "destination principle": the value-added tax is paid to the government of the country in which the consumer who buys the product lives. Businesses selling

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