Italy VAT update

Sat 24th Jun 2017

A range of changes to the Italian VAT regime have now been enacted, including:

  • A commitment to VAT rate rises if the government fails to meet its Euro budget rules:

Current Jan 2018 Jan 2019 Jan 2020 Jan 2021
Standard rate 22% 25% 25.4% 24.9% 25%
Reduced rate 10% 11.5% 12% 13% 13%
  • Restricted VAT credit applications to the annual return due in the following year.  This will apply for the 2017 annual return, due in 2018.
  • A commitment to VAT credit refunds within 60 days
  • Introducing an outside audit requirement for the offset of VAT credits above €5,000 against other taxes due
  • Including Italian publicly quoted companies in the split payments requirement of VAT submitted directly to the tax authorities.  This is applicable from 1 July 2017.


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