Italy: VAT inward processing relief for intra-EU goods

Italy: VAT inward processing relief for intra-EU goods

A law that introduces changes to the Italian value added tax (VAT) provisions—specifically concerning “inward processing relief” that is available for certain intra-EU transactions—was recently published in the Italian official gazette, and will be effective 18 August 2015.


Related content

Under the new measures, the movement of goods from one EU Member State into Italy will be disregarded only if the goods, after having been processed or having value added in Italy, are returned to the taxable person in the EU Member State—the goods must be returned to the party from which the goods were initially dispatched or transported.


Similarly, the movement of goods from Italy to another EU Member State will be disregarded only if the goods, after having been processed or having value added in that other country, are returned to the same person in Italy.


Non-Italian taxable persons, therefore, need to complete a VAT registration in Italy, unless the goods will be returned to that person after having been processed in Italy.


Read an August 2015 report [PDF 190 KB] prepared by the KPMG member firm in Italy: European Bill 2014 (Law 115/15) – New Italian VAT measures

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.