VAT compliance & reporting rules in Italy 2025 Below is summary of the major rules provided under Italian VAT rules (VAT Act (DPR 633/72)), plus adoption of EU VAT Directive provisions. Check our country VAT guides for other jurisdictions. Our VAT Calculator & VAT Filer products on
2025 Budget extends B2B anti-VAT fraud measure Italy’s 2025 Budget, including the extension of the domestic reverse charge – eliminating the VAT-element of invoice payment to reduce fraud opportunities. The domestic reverse charge removes the VAT cash payment on B2B deals which are subject to
2025 Budget Law withdraws €5.5m Italian revenue DST threshold Italy has gazetted its 2025 Budget Law which includes the withdrawal of one of the two thresholds for its 3% Digital Services Tax. The change will bring more non-resident providers of digital services into the Italian
Sept 2024: Reductions in penalty fines for VAT compliance and payment infringements Italy has softened many of the rules and rates around its VAT penalty regime from 1 September 2024. Specific measures relate to: Fines for late returns; Fines for unpaid VAT; Penalties on late
Non-EU taxpayers must provide financial guarantee The Italian VAT law has been updated to require non-EU established businesses with a non-resident VAT number to provide a financial guarantee to the tax authorities if they are performing intra-community supplies from/to Italy. Fiscal representative will themselves have
Meeting anti-fraud tax gap targets helps unlock EU COVID funding ahead of schedule Italy’s Treasury has released Istat data for 2016 to 2021 revealing major improvements in closing down tax fraud and the tax gap – the difference between forecast and received fiscal revenues. The
EU’s Commission evaluates Italy’s €870m VAT assessment on Meta/Facebook for ‘free’ platform in exchange for users’ personal data The European Commission’s VAT Committee is evaluating the VAT liabilities of Meta (Facebook) raised by the Italian authorities on the free provision of the Facebook social media
1 Jan 2024: micro businesses mandated in SdI e-invoicing All remaining businesses with a turnover not exceeding €25,000 per annum are included within the SdI e-invoicing obligations from 1 January 2024. Over the past two years, there has been a phased introduction for small businesses.
Further extension of VAT rate cut to natural gas supplies until 31 December 2023 Italy has gazetted an eighth extension to the super reduced VAT rate on the supply of nature gas. The rate will continue to be 5%. The current temporary cut from 2021
Parliament approves tax reforms, including major VAT changes Italy’s Parliament last week approved wholesale reform of Italian tax including a number of changes to the Italian VAT system. The reforms are aimed at modernising the tax regime, making compliance easier and attracting foreign investment. The
