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Italy new VAT groups

  • Nov 6, 2016 | Richard Asquith

Italy new VAT groups

Italy is to introduce VAT groups for connected, resident companies from 1 January 2018 (Financial Law 2017).

The new, simplified VAT reporting group will enable connected companies to report under a single number, and eliminate VAT payments between group members. Companies may benefit from being classified as a single reporting entity based on criteria around ownership, financial and economic factors. VAT grouping will be optional.

The introduction of VAT groups requires a consultation with the EU’s VAT Committee, and will have to follow Article 11 of the EU VAT Directive rules. It would replace the VAT group settlement.

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: 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.