Italian Update - Digital Transactions & VAT Changes

Recent updates regarding VAT in Italy.

Italy VAT update for 2018

In November, Taxback International released the proposed measures for Italy's financial decisions for 2018.

The Law related to “Forecasting Financial Statements of the State for the financial year 2018 and multi-year Financial Statements for the years 2018-2020” ('Financial Law 2018') was approved last year on the 23th December 2017 with some new rules in effective since 1st January 2018.

The Italian 10% VAT rate has been extended to contracts related to theatrical performances, and services of a sporting nature rendered by amateur sports clubs recognized by 'CONI'.

From 1st January 2018, supplies of goods and services between a parent company (HQ) and a local branch (permanent establishment) are now relevant for VAT purposes.

There is also mandatory e-invoicing for general supplies of goods and services from 1st January 2019 (1st July 2018 for supplies of gasoline or diesel oil intended for use as motor fuels, mandatory electronic storage and electronic transmission of consideration for such supplies). However, the e-invoicing obligation for tax free shopping has been postponed to 1st September 2018.

In the retail sector, options for electronic transmission of consideration already made by 31st December 2016, remain valid until 31st December 2018. The deadline for submission of the communication of data on invoices issued and received ('spesometro') is extending from 16th to 30th September for the relevant years.

There will also be a new B2B tax on digital transactions (Web Tax) from 1st January 2019, applying to the provision of services effectuated by means of electronic devices to Italian resident;

  • Corporations
  • Government Bodies
  • Partnerships
  • Sole Proprietorships
  • Self-employed professionals
  • Italian permanent establishments of non-Italian resident persons.

The tax is due from both Italian resident service providers and non-resident service providers who, during a calendar year, carry out more than 3,000 transactions falling within the scope of the Web Tax. The tax rate is 3%, and the taxable base is the consideration paid for the service, net of VAT.

Italy isn't the only country to announce recent updates in their VAT legislation. The Swiss have also given information regarding their VAT changes for 2018 and 2019.


If you have any questions regarding VAT updates for 2018, feel free to get in contact with our team of experts today!

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We know that Indirect taxes such as VAT and GST can have a huge effect on your business. As VAT rates change sporadically keeping yourself informed can be difficult.  Compliance is always crucial. That’s why our Indirect Tax Experts share their hand-picked news stories every day that you need to know. From breaking news to VAT changes and new EU legislation. We know that relevant information means better decision making. We aim to be your number 1 source for VAT and GST news.

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