Italy VAT split payment
The Italian Finance Ministry has applied to the European Commission for the extension of the VAT split payment mechanism.
Spilt payments, an anti-VAT fraud measure, requires the acquirer of designated goods or services to pay any VAT due directly to the tax authorities rather than the vendor. This takes the VAT cash element out of the system and reduces any likelihood of potential VAT fraud.
Since 2015, the EC has permitted the split payment mechanism in Italy for supplies to government agencies. The new application will extend this facility to other VAT-prone industries.
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