Italian VAT reverse charge invoice changes

From the start of this year, there are new Italian VAT invoice rules for domestic suppliers of goods under the reverse charge.

The Reverse Charge is an EU wide VAT reporting protocol to reduce the number of situations where foreign companies have to register for VAT in a foreign company when they are providing taxable supplies.  Instead, the local customer (who must have a VAT registration locally) records the sale and purchase under their Italian VAT return.  There is no actually VAT cash-flow implications.

Italy introduced the reverse charge on a range of domestic supplies several years ago.

From 2013, the 'self-invoicing' for reverse charge goods supplies has been replaced by combining the sales transaction into the suppliers invoice.

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