Regulatory update

March VAT Update: Italy

09 March 2015

Italy changed invoicing rules regarding transactions performed by foreign entities

Countries:

Starting from 23rd of February foreign entity (i.e. entity which does not have registered address in Italy), including entities registered for VAT purposes in Italy (be it through fiscal representative or directly) should show on invoices issued to Italian entities only VAT number issued by the ‘country of origin’.

This change mainly affects transactions within Italian territory. Reporting foreign VAT number on the invoice issued to Italian entity may lead to conclusion that transaction has cross-border character. To avoid confusion we recommend supplementing the sale documents with wording “Internal sale subject to the Reverse Charge mechanism, according to art. 17 c.2 DPR 633/72”.

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