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Italy VAT fraud measures

  • Feb 7, 2017 | Richard Asquith

Italy VAT fraud measures

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.


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 the former VP Global Indirect Tax at Avalara