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Italy controversial split VAT payments a success

  • VAT
  • 11 March 2016 | Richard Asquith

Italy controversial split VAT payments a success

The Italian tax authorities confirmed this week that VAT revenues rose by €4.8bn in 2015 thanks largely to the implementation of the controversial split payments on VAT.

The measure requires government bodies to withhold sales VAT on payments to suppliers, and instead pay directly to the Italian Agenzia Entrate. This eliminates the cases of VAT fraud on public contracts whereby suppliers to the state have been under declaring VAT payments.

The measure required approval from the European Commission as it was a significant deviation from the EU VAT Directive, and potentially undermines the EU VAT regime of payments across the VAT chain.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.