Italy extends VAT split payment regime.
The Italian Department of Finance has released new lists of government and private sector entities covered by Italy’s split-payment mechanism.
The lists have now been included in guidance on the regime, on the “Scissione dei pagamenti” section of the Department’s website. The list includes companies controlled by government ministries and by central ad-local public bodies and companies listed on the FTSE MIB index of the Italian Stock Exchange.
The split payment mechanism is an anti-tax evasion measure requiring government departments to pay the VAT payable under a contract no longer to their supplier but directly to the state. It specifies that public bodies should make invoice payments minus VAT to suppliers, as any tax is paid directly to the state.
Since July 1st 2017, the mechanism was extended to companies listed on the FTSE MIB index, and to companies owned or part-owned by the state, those owned directly by local authorities, and their subsidiaries.
If you’d like to find out more about Italy’s VAT Split-Payment Regime, contact Taxback International directly for some free expert advice.
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