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Italy

 

News & Tips

VAT refund – Bank guarantee – New threshold

Italy has raised VAT refund guarantee threshold from €15,000 to €30,000. This means that no more bank guarantee is required if the VAT credit is under € 30,000. Above €30.000 the taxable person will still be obliged to provide a bank guarantee.


New VAT reporting obligations

  • New quarterly VAT reporting [Comunicazione dei dati delle fatture emesse e ricevute]

As from 01/01/2017, a company VAT registered in Italy will be obliged to communicate to the Italian VAT authorities the data contained in invoices issued and received on a quarterly basis. The information to be provided includes: data identifying the parties, invoice date and number, taxable base, VAT rate applied, VAT amount and kind of transaction. The data must be filed by electronic way before the last day of the second month following the quarter it refers to.  Failure to present the communication or an incorrect presentation of the data will result in a penalty of between € 25 up to € 25,000.

  • New quarterly VAT computation [Comunicazione dei dati delle liquidazioni periodiche IVA]

As from 01/01/2017, a new quarterly communication of VAT calculation will be introduced. The data must be filed by electronically before the last day of the second month following the quarter it refers to. Failure to present the communication or an incorrect presentation of the data will lead to a penalty of between € 500 up to € 2,000.


Removal of VAT reporting obligations

The following obligations will be cancelled from 01/01/2017:

  • Annual “Communication of sales and purchases list” [Spesometro]
  • Monthly Registers of EU purchases of goods and services [Removal postponed to 2018]
  • Annual Black-list  report
  • Annual return for leasing company

Modification of VAT reporting obligations 

  • Deadline for annual VAT return

Deadline for the annual VAT return for the year 2016 remains unchanged [end of February 2017]. Annual VAT return for the year 2017 will have to be filed between 01/02/18 and 30/04/18.

  • Amending annual VAT returns

In case of corrections in favor of the company, it will be possible to amend the annual VAT return until December 31 of the fifth year following that in which the return is submitted.

More VAT News & Tips in Italy

DOING BUSINESS IN ITALY [IT] - VAT GUIDE

 

General

VAT Directive

Italy

What is the structure of the VAT number?

Each individual VAT identification number shall have a prefix in accordance with ISO code 3166 - alpha 2 - by which the Member State may be identified.

 

Italian VAT numbers have 12 characters [IT + 11 digits]. The first 7 digits identify the taxpayer, the eighth and the ninth ones correspond to the tax agency and the last one constitutes a control number.

 

What is the local name of the tax?

 

Imposta sul Valore Aggiunto [IVA]

 

VAT rate

VAT Directive

Italy

 VAT rates

Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services.

Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.

 

Italy applies a standard VAT rate of 22% and three reduced VAT rates: 4% and 10%.

See VAT rates applied in the EU.  

VAT return

VAT Directive

Italy

How is the tax period determined? 

The tax period shall be set by each Member State at one month, two months or three months.

Member States may, however, set different tax periods provided those ones do not exceed one year. 

Quarterly

The tax period is one quarter [standard tax period]. Your company has to report its VAT position by filing a quarterly VAT return. A listing of clients and providers is also required.

 

When should periodical VAT return be filed?

The VAT return shall be submitted by a deadline to be determined by Member States.

That deadline may not be more than two months after the end of each tax period.

 

Quarterly VAT returns must be filed by electronic means before the  16th ofthe month following the quarter.

Statement

VAT Directive

Italy

Annual recapitulative statement

Is this requirement laid down in the country and what is the filing deadline?

Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year.

That return shall provide all the information necessary for any adjustments.

 

Your company is required to submit an annual VAT return by the end of February.

Recapitulative statement of intra-EU supply of goods [European Sales Listing - ESL]

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement shall be drawn up for each calendar month.

However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency.

The recapitulative statement shall be submitted within a period not exceeding one month.

 

The recapitulative statement [ESL] must be drawn up for each calendar month. Taxpayers can however opt for filing the Statement on a quarterly basis provided the intra-EU transactions do not exceed € 50.000 within the past four quarters. The statement has to be filed before the 25th day of the month following the reporting period [month/quarter] to which it relates.

Payment

VAT Directive

Italy

What is the payment deadline?

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. 

Member States may, however, set a different date for payment of that amount.

 

 

In case VAT due results from the annual VAT return, payment should be made before March 16th of the next year.

Are interim payments required?

Member States may require interim payment to be made.

Periodical VAT calculations [liquidazioni IVA]. Interim payments are due on a monthly or a quarterly basis. The VAT due must be paid before the 16th day of the month following the period  [or the 16th day of the second month following the quarter].

 

VAT refund

VAT Directive

Italy

VAT refund for companies VAT registered in the country.

Is any VAT credit automatically carried forward or refunded?

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.

 

A VAT credit resulting from a periodic VAT settlement or from the annual VAT return is in principle automatically carried forward to the next period, unless a tax refund has been applied for. 

Special measures for foreign companies

VAT Directive

Italy

Optional reverse charge [art. 194 of the VAT Directive] for non-resident supplier.

SUPPLY OF GOODS

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is applicable to all supplies of goods carried out by a taxpayer not established in Italy provided the customer is a taxpayer established in Italy.

Optional reverse charge [art. 194 of the VAT Directive] for non-resident provider. 

SUPPLY OF SERVICES

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is applicable to all supplies of services carried out by a taxpayer not established in Italy provided the customer is a taxpayer established in Italy.

Have simplification measures been taken to avoid registration of the foreign company for the goods held on consignment in the country?

 

No

Do special arrangements apply to "call-off-stock"?

 

Yes

Special arrangements apply for call-off-stock. Foreign taxpayers are  therefore not VAT required to be registered in Italy provided the conditions are met.

 

Triangulation can be applied when the middleman (B) is VAT registered [as a non-established company] for others supplies in the 3rd country [Member State of destination]?  

Triangulation simplification measures can be applied even if the middleman B is VAT registered as a non-established company in Italy [Member State C].

 

VAT on import

VAT Directive

Italy

VAT warehousing regime

Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.

 

Italy has introduced VAT warehousing regime applicable under specific conditions.

VAT on importation – Postponed accounting via the VAT return.

Is it possible for a company to pay the import VAT via the periodical VAT return?

Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return  to be submitted.

 

Postponed accounting via the VAT return is not possible in Italy. Import VAT needs to be paid to the customs authorities upon importation [immediate payment]. A deferred payment for VAT and customs [similar delay] and additional delay for import VAT are however possible under specific conditions.

 

Miscellaneous

VAT Directive

Italy

Intrastat Threshold  

Dispatches: N/A

Arrivals : N/A

Distance Sales - Threshold  

 € 35.000

See various thresholds applied in the EU

 

Ministry of Finance   website

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