Italy: New VAT Provisions – Esterometro

Italy’s 2020 budget law (No. 160/2019) and the conversion of Law Decree n. 124/2019 were published at the end of December 2019 and has brought with it a number of new VAT measures including:

New deadline for the submission of the so-called “Esterometro”

Taxable persons that are established in Italy are obliged to periodically submit data relating to the transactions with counterparties not established in Italy, in the form of esterometro.

In the Law Decree n.124/2019 the deadlines for filing were amended and as of 1 January 2020 the esterometro will be submitted on a quarterly basis by the end of the month following the quarter of reference. The first submission will be due on 30 April 2020.

Postponement of VAT rate increases

VAT rates will not increase in 2020 and the below rates will continue to apply:

Standard rate is 22%
Reduced rates are 4%, 5% and 10%

From 2021, VAT rates are scheduled to increase:

From 1 January 2021, the ordinary rate is to increase to 25%
From 1 January 2022, the ordinary rate is to increase to 26.5%

No increases will apply to the 4% and 5% reduced rates.