Letters of intent for usual exporters
In case a business performs zero rated supplies (intra-EU supplies and exportations) in Italy for more than 10% of its annual turnover, it may obtain the status of “usual exporter”. As such, it is entitled to purchase VAT free services and goods up to the amount of the zero-rated supplies made during the previous year.
This scheme is subject to conditions, including the issuance of “letters of intent”. The Italian tax Authorities have published the new model of document, which may be found here.
The information about the letters of intent issued by usual exporters is now available online.
Interim payments are due on a monthly basis [before the 16th day of the month following the one to which the payment relates] or on a quarterly basis provided conditions are met [before the 16th day of the second month subsequent to the one to which the payment relates], except for the payment for the last quarter, which is due by March 16th of the next year [1% interest is due]. Moreover, a payment on account has to be made for the last monthly/quarterly payment by December 27th of each year. The payment on account is generally 88% of the last periodic VAT payment in the preceding calendar year.
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.
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 the statutes of limitations
As from the fiscal year 2016, the period during which Italian VAT authorities are entitled to make a VAT audit is extended as follows:
- The tax assessment must be notified by 31/12 of the fifth year following the year in which the VAT return was submitted [instead of the term of four year provided by the old provisions].
- In case of failure to file any VAT return, the tax assessment can be notified by 31/12 of the seventh year following the year in which the tax return should have been submitted [instead of the term of five years provided by the old provisions]
- The extension of the statutes of limitations [ aiming at doubling the ordinary term] in case of criminal tax violation has been repealed.