- Small businesses with annual EU turnover up to 100,000 euros and within Italy’s national threshold of 85,000 euros can opt for the cross-border VAT exemption.
- The regime applies to outgoing transactions in other EU countries and ends if thresholds are exceeded or if a business opts out, reverting to ordinary VAT rules.
- The regime aligns with Italy’s flat-rate VAT regime, sets compliance obligations for both Italian and nonresident entities, and introduces cooperation with EU tax authorities.
- Quarterly and preventive communications are mandatory to maintain exemption status; late or incomplete filings may result in administrative penalties.
- Re-entry into the regime after termination requires a quarantine period determined by EU countries.
Source: news.bloombergtax.com
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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