Budget changes to VAT rates
The Italian 2019 Budget Law has provided for the following main changes to Italian VAT rules:
“Spesometro” filing obligation abolished
From 1st January 2019, the requirement to file VAT Invoice Data Reports, which had replaced the Spesometro, is abolished. The final submission relating to transactions carried out in the second half of 2018 which are captured by these returns, is due on 28th February 2019.
The abolition of this declaration applies to both resident and non-resident VAT registered businesses. Whilst the Esterometro (see below) is now required for residents, the removal of the Spesometro has left a gap in reporting in relation to non-residents businesses. It’s possible the tax authority will introduce something to replace it.
Launch of the “Esterometro”
With effect from 1st January 2019, Italian VAT established businesses must file the Esterometro return. This is a monthly “cross-border communication” demanded by the Italian tax authorities. The return will have to detail invoice information related to the sales of goods and services provided to or received from parties not established in Italy. The purpose of this return is to capture transactional data not captured by Italy’s mandatory e-invoicing system, which only applies to Italian established businesses.
The Esterometro must be submitted electronically by the last day of the month following the tax period. This means that the first filing date for many established businesses will be on 28th February 2019.
If you should like to discuss the above developments further, please do get in touch with us.