VATLive > Blog > European News > Italy imposes marketplace VAT fraud obligations

Italy imposes marketplace VAT fraud obligations

  • Feb 16, 2019 | Richard Asquith

Italy is making online marketplaces the deemed supplier and VAT principal on B2C sales below €150 by non-EU third party sellers. The measure will apply to consumer electronics, such as mobile phones, video games, tablets, games consols etc. It covers imports from non-EU, third countries.

Instead of the non-EU seller being responsible for VAT reporting under distance selling or import rules, the market place will first acquire the goods from the seller as a B2B, nil-rated transaction, and then provide a local sale to the consumer with Italian VAT. The marketplace will then be responsible for charging, collecting and remitting VAT to the Italian tax authorities.

Non-EU sellers affected must still appoint a local representative in Italy.

The Italian law change mirrors a 2021 proposal by the European Commission, and appears to be in advance of this proposal being adopted into the EU VAT Directive.  This would put into question this derivation into question.  Whilst the implementing law was gazetted on 12 February, it is not yet clear when it will be enforced.


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. 

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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 can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 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.
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