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Italy: Tax measures in advance of budget law 2020

Italy: Tax measures in advance of budget law 2020

Tax provisions in a “law decree” were published in advance of the budget law for 2020.


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Law Decree no. 124 of 26 October 2019 was published in the official gazette and now must be converted by the Italian parliament into law (and thus is subject to possible amendments during the legislative process) by 25 December 2019.

Among the tax measures in Law Decree no. 124 are provisions relating to:

  • The assumption of tax liabilities (accollo) by a third party (the party that assumes the tax liability must settle the liability in compliance with the domestic rules for each type of tax but cannot offset the assumed tax liability against its own tax credits)
  • Rules for offsetting credits declared in annual income tax and IRAP returns and aligning the measures with the existing rules for offsetting value added tax (VAT) credits
  • New rules for a 24-hour time limit within which a consignee of products under a customs duty suspension must inform the customs authority (rules intended to address excise duty fraud)
  • Recordkeeping rules providing that data contained in an XML file of e-invoices must be digitally stored for eight years after the filing of the annual VAT return
  • An extension to 30 November 2019 of the deadline for settling certain tax liabilities (rottamazione-ter)
  • Rules relating to VAT including VAT payment obligations for the removal of fuel and other gasoline-related products, a ban on certain purchases without VAT under the "frequent exporters' scheme" program, rules relating to the use of the reverse-charge mechanism for contract work, and measures concerning the use of pre-prepared VAT ledgers and returns
  • Measures relating to withholding tax on wages and fees

Read a November 2019 report [PDF 388 KB] prepared by the KPMG member firm in Italy

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