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Italy VAT split payment

Italy VAT split payment

The Italian Finance Ministry has applied to the European Commission for the extension of the VAT split payment mechanism.

Spilt payments, an anti-VAT fraud measure, requires the acquirer of designated goods or services to pay any VAT due directly to the tax authorities rather than the vendor.  This takes the VAT cash element out of the system and reduces any likelihood of potential VAT fraud.

Since 2015, the EC has permitted the split payment mechanism in Italy for supplies to government agencies.  The new application will extend this facility to other VAT-prone industries.

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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 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.