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Italy VAT update

  • EU VAT
  • 23 June 2017 | Richard Asquith

Italy VAT update

A range of changes to the Italian VAT regime have now been enacted, including:

  • A commitment to VAT rate rises if the government fails to meet its Euro budget rules:
Current Jan 2018 Jan 2019 Jan 2020 Jan 2021
Standard rate 22% 25% 25.4% 24.9% 25%
Reduced rate 10% 11.5% 12% 13% 13%
  • Restricted VAT credit applications to the annual return due in the following year.  This will apply for the 2017 annual return, due in 2018.
  • A commitment to VAT credit refunds within 60 days
  • Introducing an outside audit requirement for the offset of VAT credits above €5,000 against other taxes due
  • Including Italian publicly quoted companies in the split payments requirement of VAT submitted directly to the tax authorities.  This is applicable from 1 July 2017.
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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.