Italy – VAT measures in “simplification decree” | KPMG | GLOBAL.
November 7: The Italian government approved a decree that contains changes to the value added tax (VAT) rules and that will be effective with the publication of the decree in the official gazette.
The decree is referred to in English as the “simplification decree,” and it provides the following VAT-related relief:
- VAT refunds no longer require bank guarantees and insurance policies for VAT refunds of up to €15,000 (an increase from the current threshold of €5,000).
- The threshold for annual reports of sales and goods transactions is increased to trades of more than €10,000 with entities or trading partners located in “black list” countries (an increase from the current threshold of €500).
- There are amendments to the rules for the VAT information exchange system (VIES) enrollment for trading with EU partners.
- Relief is provided for “habitual exporters” by no longer requiring letters of intent received from customers.
- “Intrastat returns” are simplified for certain generic services.
- An increased VAT threshold of €50 applies for supplies made free-of-charge, thus matching the threshold that applies for deductions from corporate income tax.
Read a November 2014 report [PDF 358 KB] prepared by the KPMG member firm in Italy:Simplification Decree – VAT measures
