- The cross-border VAT exemption regime now allows small businesses to benefit from VAT exemption for active transactions (sales and services) in other EU member states, not just Italy.
- The regime applies only to active operations (output), not to passive operations (input); businesses cannot deduct VAT on purchases related to exempt sales.
- Businesses may need to obtain additional VAT identification in other member states for certain transactions, such as intra-community acquisitions or reverse charge operations.
- For foreign businesses applying the regime in Italy, their Italian VAT number is deactivated only for exempt active operations but must still be used for transactions where they owe VAT in Italy.
- The tax authority’s circular provides detailed operational instructions and clarifies identification and compliance obligations under the new regime.
Source: eutekne.info
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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