Italy new VAT groups
Italy is to introduce VAT groups for connected, resident companies from 1 January 2018 (Financial Law 2017).
The new, simplified VAT reporting group will enable connected companies to report under a single number, and eliminate VAT payments between group members. Companies may benefit from being classified as a single reporting entity based on criteria around ownership, financial and economic factors. VAT grouping will be optional.
The introduction of VAT groups requires a consultation with the EU’s VAT Committee, and will have to follow Article 11 of the EU VAT Directive rules. It would replace the VAT group settlement.
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