- Classification Change: As of October 4, 2024, Legislative Decree No. 141/2024 classifies import VAT in Italy as a customs duty, aligning it with customs duties and excise taxes, thereby ending a long-standing debate on its treatment.
- Responsibility for Payment: The responsibility for collecting import VAT will shift to customs representatives for non-EU taxable persons operating in Italy, altering the roles of fiscal representatives in VAT compliance.
- Penalties and Consequences: Penalties for unpaid import VAT will now align with customs duty violations, potentially leading to serious implications, such as smuggling charges and the confiscation of goods by customs authorities.
Source: BDO
- Classification of Import VAT: Effective October 4, 2024, import VAT in Italy is classified as a customs duty, aligning it with other border taxes and shifting the responsibility for collection to the Customs Agency.
- New Compliance Requirements: The decree introduces specific conditions for VAT treatment, including a 10% tax on crude oil and a 1% levy on administrative units in commercial areas, while maintaining exemptions for certain goods.
- Penalties and Liability Changes: Import VAT violations will incur border-duty penalties, with criminal charges for amounts exceeding €10,000. Indirect customs representatives will now be jointly liable for import VAT payments, enhancing compliance with EU regulations.
Source KPMG
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