Italy reduces countries on Blacklist VAT reporting

Italy has withdrawn a number of countries from the ‘Blacklist’ of states for which it requires additional reporting. Any Italian VAT registered business, resident and non-resident, must produce a regular report on transactions undertaken with a business resident in a Blacklist country.

The latest countries to be removed from the list are: Malaysia, Singapore and Philippines. This leaves over 40 countries on the list, which also imposes restrictions on the deductibility of costs incurred from the countries.

Italian VAT is currently levied at 22%.  There is no monthly or quarterly VAT return, instead companies make monthly payments to the tax authorities, and then make full disclosures in an annual VAT return.