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Italy withdraws VAT split payments

  • Jul 8, 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.


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 can be contacted at: richard.asquith@avalara.com. 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.