Italy: VAT reverse-charge mechanism for game consoles, tablets, laptops

Italy: VAT reverse-charge mechanism

New measures in Italy extend the reverse-charge mechanism under the value added tax (VAT) regime to the supply of game consoles, tablets, and laptops.

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Legislative Decree no. 24/2016, implementing Council Directive 2013/43/EU, introduces amendments to the VAT reverse-charge mechanism governed by article 17(6) of the Italian VAT law. Accordingly, the reverse-charge mechanism is extended to supplies of game consoles, tablets and laptops. 

The reverse-charge mechanism extension is effective 2 May 2016 (i.e., the 60th day after publication of the decree in the official journal on 3 March 2016) and applies until 31 December 2018.

Other reverse-charge changes

Other changes were made to the VAT reverse-charge mechanism, concerning the:

  • Exclusion of supplies of mobile-phone components and accessories from the reverse-charge mechanism (but supplies of mobile phones themselves are still eligible for  the reverse-charge mechanism)
  • Exclusion of supplies of aggregates made directly by quarries and mines, and supplies of goods made to hypermarkets, supermarkets and discount food stores

 

Read a May 2016 report [PDF 73 KB] prepared by the KPMG member firm in Italy

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