VATLive > Blog > European News > Italy VAT fraud measures - Avalara

Italy VAT fraud measures


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.

Latest Italian news
Italy Esterometro replacing the Spesometro Jan 2019
October 15, 2018

On 1 January 2019, Italy will withdraw the requirement for resident and non-resident Italian tax payers to complete the Spesometro quarterly / bi-annual sales and purchase...
Italy Spesometro Oct 2018 update
September 24, 2018

Italian VAT registered businesses are due to file their bi-annual Spesometro on 1 October. Italy will be introducing a new e-invoice live invoice SdI reporting...
Italy SdI live reporting delay refused
September 18, 2018

The Italian authorities have this week turned down a request to delay the scheduled 1 January 2019 introduction of e-invoicing and live reporting, Sistema di Interscambio...

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 is part of the European leadership team which this year won International Tax Review's 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.