New value added tax (VAT) grouping rules have been introduced in Italy, with a proposed effective date of 1 January 2018. The VAT grouping rules are in draft form, and thus may be subject to change. The anticipated date of passage is sometime in 2016.
VAT group members would have to be taxable persons (not necessarily companies) and be established in Italy. To be members of the VAT group, the entities must jointly have financial, economic, and organizational links.
Permanent establishments located abroad would be ineligible to join the VAT group, as would entities in liquidation or subject to bankruptcy proceedings.
Read a November 2016 report [PDF 178 KB] prepared by the KPMG member firm in Italy: Draft Budget Law 2017 - VAT grouping rule
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.