5 Major Developments in Italy

5 Major Developments in Italy

• 5% VAT for children’s products and feminine hygiene products

• Reclassification of groups of certain active products without an intended medical purpose

• The export with theft of the goods in Italy is subject to VAT

• Electronic self-billing for unreturned packaging

• Online purchase of airline tickets with diversified VAT regime

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Bad debts (Relief for Underpaid Sales Invoices)

• Bankruptcy procedure: when it is possible to offset the VAT credit of professionals with tax debts

• Ruling 485: VAT variation notes – Non-acceptance of the receiver – Late lodgement of liabilities

• VAT alert for the business crisis: new debt thresholds

Bookkeeping

• Obligation to Preserve Accounting Books has been Withdrawn

• The annual obligation to archive accounting books has been abolished

Composite supply

• VAT rate applicable to Christmas basket

• Court of Cassation: VAT-exempt vehicle repair insurance

• Court of cassation: VAT-exempt vehicle repair insurance

• Ruling 520: Services not ancillary if performed directly by other person

Coronavirus

• Tax Agency Clarifies Preferential VAT Rate on Medical Equipment, Ancillary Goods Under Relaunch Decree

• VAT Treatment of Wheeled Ultrasound Equipment Sales Due to COVID-19

Cryptocurrency and NFT

• Updates to Italy’s Law on VAT and crypto-assets

• Ruling 515: Mining irrelevant for VAT purposes in the absence of the customer

• Italy update on VAT and Crypto assets

• Utility tokens – VAT – Italy

• Ruling 508: Mining activities -processing for direct tax and VAT purposes

• Ruling 507: Issuance and sale of utility tokens

Customs

• Reclassification of groups of certain active products without an intended medical purpose

• New rules on import VAT recovery

• Abandonment Of The SAD In Favour Of Digital Management

• Circular No. 34/2022: Relief VAT/Customs duties for importation of goods destined for Ukrainian refugees

• Dubai Customs discusses further trade cooperation with Italy

• Order no. 14908/2022 of the Italian Supreme Court: customs penalties and proportionality principle

Deduction (Input Tax Credit)

• Deduction of VAT on 2022 invoices received in January 2023

• VAT deduction and year-end peculiarities

• Invoice date relevant for year-end VAT deduction

• VAT deduction and year-end peculiarities

• Ruling 592: Incorrect application of VAT: how to claim a refund if a credit invoice is not possible

• New rules on import VAT recovery

• Import VAT deduction only with summary statement

• Ruling 567: VAT on rents deductible only if the owner is identified

• No VAT recoverability in case of non-existent transactions

• VAT refund allowed for building works on third party land

• Ruling 541: Non-deductible VAT for IRES and IRAP purposes due to settlement agreement

• Ruling 529: Dynamic holding company – VAT deduction Transaction cost

• Proposal European Commission – Italy is authorized to limit the right to deduct input VAT to 40% in respect of the purchase of certain motorised road vehicles

• Ruling 511: Merger by incorporation and pro-rata of input VAT deduction

• Ruling 514: VAT exemption regime for international transport: does not apply to subcontractor

• No VAT deduction in case of non-existent transactions subject to taxable VAT regime under reverse charge mechanism

• Reduced VAT deduction for cars: extension pending EU authorization

• The EU authorization for the limited VAT deduction on cars is expiring

• Imports of goods whose amount is lower than 300 euro: registration of a recapitulative document

• A further case of deduction of VAT on importations of goods not owned by the importer

• A further case of deduction of import VAT paid on third party goods

E-Commerce / Electronic services

• Ruling 582: Online game management activities for VAT and direct tax purposes

• Electronic platforms: new communication obligation against VAT evasion

• Dubai Customs discusses further trade cooperation with Italy

• Ruling 477: Services of collecting sports bets and related wagers through computer platforms – VAT exemption regime

• Netflix to pay nearly €56 million in taxes in Italy

E-invoicing

• The Italian tax authorities will store the e-invoicing data even without the consultation agreement with the taxpayer

• Ruling 575: Tax Agency clarifies e-invoicing obligations of resident, nonresident companies

• Italy Is the first Clearance E-Invoicing Model in the EU for all VAT transactions

• E-Invoicing in Italy

• Italy: E-invoicing and E-reporting developments and news

• Compilation Guide for E-Invoicing has been Updated

ECJ (European Court of Justice)

• Flashback on ECJ Cases – C-500/10 (Belvedere Costruzioni) – Lengthy Italian VAT procedures may be settled without a decision on the merits

• International transport of goods: non-taxable VAT with a reduced perimeter

Environmental Tax

• 2023 Budget – further suspension of Sugar Tax and Plastic Tax for 2023

• Budget 2023 approved by Council of Ministers: VAT rate reduction baby products and feminine hygiene products, suspension plastic & sugar tax

• Italian Plastic Tax postponed

• Plastic Tax and Sugar Tax – Postponement to 2024 with the Budget law for 2023

• Italian plastic tax postponed

• Plastic taxes – A European perspective

• Plastic and sugar tax also suspended in 2023? Even abolished?

• Italian Plastic Tax will enter into force 202

Excise

• Ruling 506: Excise taxes and taxable amount for VAT purposes
• Italy Again Extends Reduced Fuel Excise Duties and Reduced VAT Rate on Natural Gas Used for Transport

• Italy Further Extends Reduced Fuel Excise Duties and Reduced VAT Rate on Natural Gas Used for Transport

Exemption

• Ruling 7: Football training by the Associations Amateur Sports Associations to children up to 12 years

• Ruling 583: Internal audit and risk management functions of pension funds are exempt from VAT

• Court of Cassation: VAT-exempt vehicle repair insurance

• Proof of transport or shipment for intra-EU VAT exempt supplies

• Adjustment of the VAT ceiling following a sale under the non-taxable VAT regime

• Ruling 554: Transfer of land with cooperating units

• VAT-Exemption For The Supply Of Goods And Services To Employees Of International Bodies And Organizations

• Italy update on VAT and Crypto assets

• Extended VAT concessions for healthcare services in the private sector

• Ruling 513: VAT exemption to be evaluated for the purchase of NPLs

• Ruling 502: Regime applicable to cleaning and sanitization services of vaccine hubs

• Ruling 499: IT services related to the management of a securities trading platform – Reverse charge

• Ruling 489: VAT exemption also for alternative investment funds

• Ruling 495: Sales of goods for employees of international organizations

• Ruling 488: Advances from customers for transactions otherwise regulated for VAT, taxable and exempt purposes

• Ruling 477: Services of collecting sports bets and related wagers through computer platforms – VAT exemption regime

• Ruling 478: Finance lease contract concerning a “Tomograph Computerized Tomograph

• Ruling 469: VAT exemption for intra-EU training activity

• VAT exemption for medical services: in which cases?

• Ruling 449: Rebilling of costs related to shipbreaking services

• VAT exemption also for medical services rendered by radiological laboratories

• International transport of goods: non-taxable VAT with a reduced perimeter
• VAT Treatment of Wheeled Ultrasound Equipment Sales Due to COVID-19

Export

• The export with theft of the goods in Italy is subject to VAT

• Ruling 568: Transactions assimilated to export supplies/supplies of indirect endowments and provisions on board

• Goods to non-EU travelers without VAT: the clarifications of the Revenue

Fiscal Representation

• Airbnb does not have to appoint a fiscal representative in Italy

Fiscalization

• Are current technical solutions for vending machines in Italy possible even after January 1, 2023?

• New receipt lottery developments

Flat Tate Schemes

• Flat-rate scheme at 85,000 euros without VAT: the EU already provides for it, but only from 2025

• Flat-rate purchases from an EU supplier under a special regime: VAT obligations

Fraud / Tax evasion

• Traceability rewards: 2 years discount on inspections

• For fictitious VAT numbers, joint liability for the professional

• The fight against the opening of fictitious VAT numbers is strengthened

• Ruling 569: VAT Deduction as a result of “tardiv “a recourse

• New receipt lottery developments

• Former Booking executives questioned over VAT fraud

Importation

• New rules on import VAT recovery
• Abandonment Of The SAD In Favour Of Digital Management
• Import VAT deduction only with summary statement
• Circular No. 34/2022: Relief VAT/Customs duties for importation of goods destined for Ukrainian refugees
• Imports of goods whose amount is lower than 300 euro: registration of a recapitulative document
• A further case of deduction of VAT on importations of goods not owned by the importer

Intra-Community Transactions

• Ruling 574: Call-off stock regime – Substitution of the original consignee of the goods.

• Proof of transport or shipment for intra-EU VAT exempt supplies

• Ruling 540: Use of the usual exporter’s plafond accrued in the context of intra-Community triangular transactions

• Flat-rate purchases from an EU supplier under a special regime: VAT obligations

Intrastat

• Conversion into law of the “Semplificazioni” Law Decree: INTRASTAT communications back to their original dead

Invoice

• Electronic self-billing for unreturned packaging

Legislative Change

• Italy: E-invoicing and E-reporting developments and news

• Italy Extends and Increases Energy Support Measures: VAT rate reduction on gas for transport extended till Oct 31, 2022

Liability (Reverse Charge/Withholding)

• Splitting and unification of the property without reverse charge

• Ruling 575: Tax Agency clarifies e-invoicing obligations of resident, nonresident companies

• The split payment lists for the year 2023 have been published

• Ruling 499: IT services related to the management of a securities trading platform – Reverse charge

Place of Supply

• Online purchase of airline tickets with diversified VAT regime

• Ruling 498: Clarification for VAT purposes on supplies by taxable person San Marino to Italian buyers

• Ruling 494: Services provided through IT media: place of supply

• Place of supply for VAT purposes of training courses held in virtual mode

Private Use

• Reduced VAT deduction for cars: extension pending EU authorization
• The EU authorization for the limited VAT deduction on cars is expiring

Rate

• 5% VAT for children’s products and feminine hygiene products

• 5% VAT extended for the first quarter of 2023 to energy and district heating service contracts

• The export with theft of the goods in Italy is subject to VAT

• VAT rate applicable to Christmas basket

• Italy Extends Energy Support Measures for December 2022

• Budget 2023 approved by Council of Ministers: VAT rate reduction baby products and feminine hygiene products, suspension plastic & sugar tax

• VAT rate on baby products reduced to 5%

• Ruling 566: 5% VAT rate on administration of methane gas for civil/industrial use?

• New urgent measures for excise duties and VAT on fuels

• Ruling 564: Reduced VAT for the transfer of technical aids if made directly to disabled people

• Rulings 561, 562 and 563: Reduced VAT for food supplements: in which cases?

• Adjustment of the VAT ceiling following a sale under the non-taxable VAT regime

• Government explains 4% reduced VAT rate for medical nutrition food products

• Government explains 4% reduced VAT rate for medical nutrition food products

• Ruling 523: 4% VAT for Halloween pumpkins only if edible

• Ruling 520: Secondary services (pest control, deratization and various maintenance) rendered with reference to the main school catering service

• New cut in excise duties and VAT until November 18, 2022

• Extended VAT concessions for healthcare services in the private sector

• Goods to non-EU travelers without VAT: the clarifications of the Revenue

• Ruling 505: VAT rate to be applied to the supply of medical nutritional supports

• Ruling 504: Royalties for use of online platform

• Italy Extends and Increases Energy Support Measures: VAT rate reduction on gas for transport extended till Oct 31, 2022

• Ruling 490: VAT rate – Preliminary safety interventions prior to the activity of reclamation

• Ruling 483: VAT rate for medical devices

• Tax Agency Clarifies Preferential VAT Rate on Medical Equipment, Ancillary Goods Under Relaunch Decree

• Italy Again Extends Reduced Fuel Excise Duties and Reduced VAT Rate on Natural Gas Used for Transport

• Ruling 474: VAT rate – Supply of medical device gas – Table A, Part II

• Italy Further Extends Reduced Fuel Excise Duties and Reduced VAT Rate on Natural Gas Used for Transport

• VAT rate of 5% for the ancillary services related to the natural gas supplies

• Ruling 446: VAT rate supply of ultrasound ultrasound scanners

• 10% VAT for the activities leading up to the remediation project

• 5% VAT and tax credits to fight the cost of energy

• 5% VAT for the entire gas supply delivered to the end user and accounted for in the invoices

• VAT treatment of wheeled ultrasound equipment sales due to COVID-19

• Election campaign with 4% VAT rate

• Administration of meals to employees via app with a VAT rate of 10%

Real Estate/Immovable Property

• Splitting and unification of the property without reverse charge
• Ruling 554: Transfer of land with cooperating units
• VAT refund allowed for building works on third party land

Real Time Reporting/Continuous Transaction Controls

• Ruling 575: Tax Agency clarifies e-invoicing obligations of resident, nonresident companies
• Italy Is the first Clearance E-Invoicing Model in the EU for all VAT transactions
• E-Invoicing in Italy
• Compilation Guide for E-Invoicing has been Updated

Refund

• Ruling 592: Incorrect application of VAT: how to claim a refund if a credit invoice is not possible
• New rules on import VAT recovery

• 2022 VAT compensation percentages for wood

Registration

• Italian VAT number – what is it and who needs it?

• The Italian Tax Authorities provide clarifications on the VAT registration through the appointment of a VAT representative

• Ruling 429: Non-resident person – opening VAT number – tax domicile at the place of business of carrying out the professional activity in Italy

Reporting / Compliance

• A guide to VAT – Doing business in Italy

• Flashback on ECJ Cases – C-500/10 (Belvedere Costruzioni) – Lengthy Italian VAT procedures may be settled without a decision on the merits

• Draft Annual VAT return

• WTS VAT newsletter #4 2022

• VAT advance: payment due on 27 December 2022

• Online drafts of the CU/2023 and IVA/2023 forms

• The anomaly communications for VAT returns for 2019 are comin

• VAT Guide: VAT in Italy

SME (Small and Medium-Sized Enterprises)

• Flat-rate purchases from an EU supplier under a special regime: VAT obligations

Split Payment

• Italy Publishes Lists of Companies Subject to VAT Split-Payment for 2023

• The split payment lists for the year 2023 have been published

• Ruling 484: VAT Variation Notes – Issuance in the event of a corporate split

Supply of Goods

• Qualification for VAT purposes of electric vehicle recharging services continues to present many uncertainties

Supply of Services

• Qualification for VAT purposes of electric vehicle recharging services continues to present many uncertainties
• Ruling 480: Services rendered by intermediaries as part of the activity of collecting public games

• The canteen service and VAT

• Place of supply for VAT purposes of training courses held in virtual mode

• Ruling 436: Arrangements for reimbursement claimed as a credit by a university to a towards a company supplying certain services

Tax Point (When the Chargeable Event Occurs)

• Invoice date relevant for year-end VAT deduction

Taxable Amount

• Ruling 587: The differential for the economic rebalancing in the contract is discounted by the VAT

• Ruling 588: Sums agreed to compensate damage are outside scope

• Two ways to recover VAT from pharmaceutical payback

• Ruling 506: Excise taxes and taxable amount for VAT purposes

• Further clarifications provided by the Italian tax authorities on the VAT deduction related to the pharmaceutical payback

• VAT adjustment in the event of a pharmaceutical “pay-back”

• Italian Transfer Pricing Adjustments and VAT

Taxable Transaction

• Differentiated VAT treatment for the amounts paid by the major transport company

• Compensation for damages due to breach of contract is excluded from VAT

• Ruling 591: Services to the Italian army acting on behalf of NATO

• Ruling 587: The differential for the economic rebalancing in the contract is discounted by the VAT

• Ruling 588: Sums agreed to compensate damage are outside scope

• Ruling 590: Pipelines of the National Network: the VAT treatment of the distribution of revenues

• Tax authorities rule on VAT and income taxes on utility tokens and mining activity

• Italy publishes guidance regarding taxation of trusts in Italy

• Ruling 480: Services rendered by intermediaries as part of the activity of collecting public games

Tax Authorities / Penalties

• Consequences of late payment of the VAT advance

• Traceability rewards: 2 years discount on inspections
• No VAT recoverability in case of non-existent transactions
• No VAT deduction in case of non-existent transactions subject to taxable VAT regime under reverse charge mechanism

• Italy Establishes Rules for Settling Pending Tax Disputes before the Supreme Court

• Order no. 14908/2022 of the Italian Supreme Court: customs penalties and proportionality principle

TOGC (Transfer of a Going Concern)

• Ruling 432: VAT refund – Person entitled to submit the request in the event of a transfer of business

VAT Group

• Ruling 544: Group VAT payment also for companies resident in other Member States

• Ruling 528: The lack of the economic constraint excludes the agricultural company from the VAT Group

• Ruling 501: VAT Group – Option for separate application of tax

• Ruling 487: Representative of the VAT Group based on turnover or revenues if the parent company is foreign

• VAT group option due by the end of September

• Guarantee on VAT refunds through «direct assumption» in groups

VAT Identification Number

• The fight against the opening of fictitious VAT numbers is strengthened

• Ministry of Labor reviews table for professionals and VAT numbers

• Ruling 429: Non-resident person – opening VAT number – tax domicile at the place of business of carrying out the professional activity in Italy

War in Ukraine

• Circular No. 34/2022: Relief VAT/Customs duties for importation of goods destined for Ukrainian refugees