Italy: VAT measures enacted

New VAT measures enacted in Italy

Value added tax (VAT) measures have been enacted in Italy, with the conversion into law of Law Decree no. 50/2017.

1000

Related content

The new measures:

  • Reduce the period within which input VAT can be recovered. Input VAT can be recovered by the deadline for filing the annual VAT return for the year in which the VAT becomes payable (previously, input VAT could be recovered during the second year after the one in which the VAT became payable).
  • Extend the “split-payment regime” to supplies of goods and services provided to certain Italian public bodies, their subsidiaries, and corporations listed on the stock exchange (Borsa Italiana).
  • Provide for a gradual increase in the rate of VAT, with the “standard” VAT rate to be phased in to 25% by 2021 (increased from 22%) and the “reduced” VAT rate to be increased to 13% as of 2020 (from 10%).
  • Allow for VAT credits to be applied to offset other tax liabilities (including corporate income tax, withholding tax, social security contributions) provided that the VAT return is “validated” by an audit firm, board of statutory auditors, or authorized tax lawyers.
  • Provide a “fast-track” VAT refund mechanism.

 

Read a June 2017 report [PDF 182 KB] prepared by the KPMG member firm in Italy

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

 

Submit

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.