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Italy extends split payments till Jun 2023

  • Aug 4, 2020 | Richard Asquith

The EU’s Commission has granted authority to Italy to extend its Split Payment programme until 30 June 2023.

The measure requires customers to pay the VAT element of select transactions into restricted VAT Accounts at the banks of their vendors. These accounts may generally only be used to remit VAT on submitted fillings by the tax payer. This way, the tax authorities can closely monitor VAT due, and limit the chance of non-repayment. Italy introduced its split payment plan in 2017.

Split payments in Italy is restricted to business to government contracts. It has also been introduced in Poland in sectors prone to VAT fraud. Romania recently withdrew its universal split payment regime under instruction by the EC on the grounds that it we disproportionate in terms of bureaucracy required compared to expected fraud prevented.

Need a fiscal representative in Italy?

Non-EU businesses selling in Italy will need to appoint a fiscal representative alongside completing VAT registration and returns.
Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients.
Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.

Need help with your Italian VAT compliance?

Researching Italian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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