- Italy plans to submit a report to the European Commission in September 2024 evaluating the effectiveness of the split payment regime.
- The European Commission has granted Italy a derogation until 30 June 2026 for the special measures of the value-added tax system, with the exception of gradually phasing out the special measure by 1 July 2025.
- The scope will be restricted to exclude supplies to companies listed on the stock exchange included in the FTSE MIB index.
- This extension will allow affected taxpayers to make necessary adjustments and local authorities to consider alternative measures.
- The split payment regime requires the VAT amount to be paid by the buyer/recipient of the invoice to the tax authorities, helping combat tax fraud and evasion. It is uncertain if the report will lead to another extension of the timelines.
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