April VAT Update: Italy

From 1st of April 2015 Italy, three months after the deadline set by EU, finally adopted 2015 digital services B2C VAT changes.

Italy implemented changes regarding digital services rendered by business to customers

Aforementioned changes have significant impact on entities rendering digital services as place of supply has been changed. If Italian entity is rendering services to customer located in other EU Member State, then such company will have to apply VAT rate and regulations of the country where customer is located.

To avoid obligation to register in multiple countries where services are rendered, Italian entities can benefit from registration through MOSS (Mini One Stop Shops).

Please note that due to significant administrative burden imposed by such change on micro and small business, current system is going to be reviewed by European Commission.

Italy decreased number of countries on Blacklist VAT reporting

Italian VAT reporting requires some additional obligations if transaction is concluded with a business resident in a country mentioned on ‘Blacklist’. This obligation applies to any Italian VAT registered business, be it resident or non-resident.

Recently Italian government waived from the Blacklist countries like Malaysia, Singapore and Philippines, Bermuda.

 
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