Italy: Cross-Border VAT Exemption Regime, Turnover Calculations, Thresholds and Checks

• From 1 January 2025, Italy’s Legislative Decree 180/2024 (implementing EU Directive 2020/285) introduced a cross-border VAT exemption regime for small businesses established in the EU.
• The regime allows eligible businesses to make supplies of goods and services in one or more other EU Member States without charging VAT, provided their total EU turnover does not exceed €100,000 and they also stay within each relevant national exemption threshold.
• If the EU-wide threshold is exceeded, the exemption ends immediately in all affected Member States.
• Businesses use a centralized system through their Member State of establishment: they must file a prior notification to enter the regime and quarterly reports covering all EU supplies; the regime is similar to OSS in centralized interaction but differs because it exempts supplies from VAT rather than collecting and remitting it.
• The regime is not a blanket VAT relief: normal obligations in the state of establishment remain, and excluded transactions still trigger relevant VAT duties; the article also notes tax authority controls and consequences of breaching the limits.

Source: commercialistatelematico.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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