Art Tax Border: Italy-Switzerland (cross-border guide)

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Editorial image related to: La frontiera fiscale tra Italia e Svizzera nella circolazione delle opere d’arte: IVA all’importazione, confisca e proporzionalità dopo Corte cost. n. 93/2025 e Cass. civ., Sez. Unite, ord. n. 24764/2026

The tax frontier between Italy and Switzerland in the circulation of works of art: VAT on importation, confiscation and proportionality after Court cost. n. 93/2025

Context

Abstract This contribution starts from the Cass order. civ., Sec. Unite, of 25 August 2026, n. 24764, to show how the story relating to the introduction into Italy, from Switzerland, of a work of art of high value constitutes a privileged observatory on the relationships between customs law, VAT on imports and the sanctioning system. The 2026 ordinance, however, does not define the merit of the controversy: after the ruling of the Constitutional Court no. 93/2025 and the self-defence annulment of the confiscation order, the parties renounced the appeal and the judgment was declared extinguished. Precisely this "non-decision", however, allows us to enhance the central issue: despite the high degree of economic integration between Switzerland and the European Union, the circulation of works of art and high-value goods continues to encounter a real fiscal border for VAT purposes. The article analyzes the distinction between duties and VAT on imports, the meaning and limits of the EEC-Switzerland Agreement of 22 July 1972, the postponement of the art. 70 d.P.R. n. 633/1972 to customs regulations, the effects of the decriminalization of simple smuggling and, above all, the remodulation of confiscation in light of the principle of constitutional and Euro-unitary proportionality.

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Operational details

Art. 70 Presidential Decree n. 633/1972 and customs regulations: the reference to articles. 282 and 301 TULD

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Key points

Constitutional Court no. 93/2025: the remodulation of the confiscation Sentence no. 93/2025 of the Constitutional Court constitutes the point of balance reached by the system. The Consulta takes note, in line with EU jurisprudence and legitimacy, of the structural identity between import VAT and internal VAT, despite the different procedural and sanctioning framework of the former. Precisely this identity makes a radically more burdensome sanctioning treatment for import VAT problematic, especially when it involves the automatic ablation of the good even after full compliance. The Court underlines that the principle of proportionality also concerns tax sanctions and is based not only in art. 3 of the Constitution, but also in the EU obligations to which Italy is bound, in particular in the art. 49, par. 3, CDFUE. It specifies that the disproportion found is not "intrinsic" to the confiscation as such, but rather "relative" or "ordinal", in comparison with other sectors of the legal system: the duties regime and the internal VAT regime. The solution adopted is additive: the art. 70 is constitutionally illegitimate in the part in which it does not provide that, in case of application of the art. 301 TULD, the things subject to the violation are not confiscated if the obligor provides for the full payment of the evaded amount, the accessories, the interests and the financial penalty. The systematic effect of the decision is notable. Confiscation remains abstractly compatible with the import VAT system, but its maintenance is no longer justifiable when the purpose of guaranteeing collection has ceased. A model is therefore outlined in which the ablative reaction must give way in the face of full satisfaction of the fiscal interest.

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Frequently Asked Questions
What is the difference between customs duties and import VAT for goods from Switzerland?
Customs duties are imposed on goods that cross a border, often reduced or eliminated by agreements such as the EEC-Switzerland agreement of 1972. Import VAT, on the other hand, is a value-added tax that applies to the introduction of goods from non-EU countries, such as Switzerland, into EU territory. Even if the duties are relaxed, VAT remains fully operational.
Why is Switzerland considered a 'tax frontier' for VAT despite its economic integration with the EU?
Switzerland is not part of the customs territory of the European Union nor of its common VAT system. This means that the introduction of goods from Switzerland into Italy is subject to import VAT, which constitutes a clear 'tax boundary line'. The high degree of economic integration does not eliminate this taxation.
How has the confiscation of assets for unpaid VAT changed after the 2025 Constitutional Court ruling?
Judgment no. 93/2025 of the Constitutional Court amended the confiscation, making it no longer automatic. Now, if the debtor pays the evaded VAT in full, the accessories, the interest and the financial penalty, the asset cannot be confiscated. This reflects a principle of proportionality, overcoming the previous model.

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