Italy VAT fraud measures
- European News
- 08 February 2017 | Richard Asquith
Italy has proposed a new round of anti-VAT fraud measures. Italy has the largest VAT Gap – the difference between expected VAT collections and actuals – in the European Union. It accounts for almost 25% of all missing EU VAT.
The measures include:
Extension of Split Payments
The extension of split payments, whereby customers pay any VAT due direct to the tax authorities instead of their vendor. At present, the measure is applied to payments to government agencies since 2015. Currently over €10bn per annum is collected through split payments. The new proposal is to extend the regime to payments to government owed companies. This will be subject to EU approval.
Domestic VAT reverse charge
Extension of the domestic reverse charge to further industry sectors subject to VAT fraud such as gold and cereals trading.
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