- Italy is committed to gradually eliminating the split payment system.
- Companies listed in the FTSE MIB index will be excluded from the split payment system starting July 1.
- Suppliers will collect VAT directly from these companies unless reverse charge applies.
- The change is part of a fiscal decree approved by the Council of Ministers.
- The relevant legal provision will be removed starting July 1, 2025.
- Split payment involves VAT being paid directly to the Treasury by the buyer.
- The system requires EU Council authorization, initially granted in 2015 and extended to June 30, 2026.
- Italy requested an extension, citing difficulties in recovering sums from fraud without split payment.
- To phase out the system, Italy will exclude FTSE MIB companies from July 1, 2025.
- The EU Council decision supports this exclusion starting July 1.
- Suppliers must adjust invoicing practices for these companies, except where reverse charge applies.
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.
