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Italy VAT split payment

  • Feb 26, 2017 | Richard Asquith

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.

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 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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.