Italy: EU Invoicing
Wednesday March 24, 2010
The Italian Tax Authority has issued a Circular Letter clarifying the position for Italian taxable persons who receive services falling under the new place of supply general rule from an EU supplier in a member state other than Italy.
The Circular clarifies that the invoice from the supplier can be used both to account for output tax under the reverse charge and to recover the corresponding input tax subject to normal rules.
This is a departure from Italian law which states that the recipient must issue a “self invoice” (autofattura).