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Italy withdraws VAT split payments

  • EU VAT
  • 09 July 2018 | Richard Asquith

Italy withdraws VAT split payments

Italy’s Minister for Economic Development has said that anti-VAT fraud split payments regime will be abolished for professional service transactions to government.

Italian split payments involve customers paying the VAT element of invoices directly to the tax authorities. Split payments are obligatory in Italy for B2G transactions only.

This reduces the opportunity for VAT fraud. Italy has the EU’s largest VAT Gap – the difference between VAT forecast revenues, based on the size of the economy and VAT rates, versus actual VAT receipts.

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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.