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Italy

Italy

Explore the requirements that apply to electronically supplied services in Italy.

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Supplies of e-services to consumers (B2C)

Is a non-resident supplier of e-services to consumers located in this country obliged to register and/or account for local VAT/GST on such supplies in this country?

Yes, there is an obligation for non-resident suppliers to charge VAT on B2C supplies of e-services to a consumer located in Italy. However, a VAT registration can be avoided through the use of the Mini One Stop Shop ("MOSS") in another EU member state.

If there is no current requirement, is there any anticipated change to that position?

Not applicable, requirement is already in place.

Is an invoice compliant with the VAT/GST law in the customer's country required?

No, There is no requirement to issue an invoice for VAT purposes on supplies to private consumers.

Supplies of e-services to businesses (B2B)

Is a non-resident supplier of e-services to business customers located in this country obliged to register and/or account for local VAT/GST on such supplies in this country?

No, the business customer must self-assess for VAT in its VAT return on a reverse charge basis.

If there is no current requirement, is there any anticipated change to that position?

No

If there is not a requirement for the non-resident supplier to register for VAT/GST, are the services subject to VAT/GST withholding by the customer?

No, the customer pays the full price to the supplier, and self-assesses for VAT on this price in its VAT return.

Where there is a current or future requirement for non-resident suppliers to register and/or account for local VAT/GST or a customer VAT withholding requirement:

When did/will that requirement come into effect?

— 1 January 2015 for B2C supplies of e-services to consumers in Italy from suppliers established in another EU Member state.

— 1 July 2003 for B2C supplies of e-services to consumers in Italy from suppliers established in a non-EU country.

What is the applicable annual turnover threshold (in local currency) for that requirement to apply?

There is no minimum threshold.

Is simplified or standard registration required?

Non-resident vendors have the option to register either in each EU member state where B2C sales are made, in which case the registration would be standard, or, subject to certain conditions, register in one EU member state under the Mini One Stop Shop (MOSS), an EU wide simplified registration (collection only).

Does the requirement apply to all e-services?

Yes, as defined under EU VAT law. Under EU VAT law, electronically supplied services mean services delivered over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimum human intervention, and impossible to ensure in the absence of information technology. Various examples of e-services are included in EU VAT law and guidance. Similar obligations apply to supplies of broadcasting and telecommunication services.

Contact

For further information please contact:

Davide Morabito
Partner
T +39 04 58114111
E dmorabito@kpmg.it

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