Italy new VAT law - KPMG Global
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Italy: VAT measures enacted

New VAT measures enacted in Italy

Value added tax (VAT) measures have been enacted in Italy, with the conversion into law of Law Decree no. 50/2017.


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The new measures:

  • Reduce the period within which input VAT can be recovered. Input VAT can be recovered by the deadline for filing the annual VAT return for the year in which the VAT becomes payable (previously, input VAT could be recovered during the second year after the one in which the VAT became payable).
  • Extend the “split-payment regime” to supplies of goods and services provided to certain Italian public bodies, their subsidiaries, and corporations listed on the stock exchange (Borsa Italiana).
  • Provide for a gradual increase in the rate of VAT, with the “standard” VAT rate to be phased in to 25% by 2021 (increased from 22%) and the “reduced” VAT rate to be increased to 13% as of 2020 (from 10%).
  • Allow for VAT credits to be applied to offset other tax liabilities (including corporate income tax, withholding tax, social security contributions) provided that the VAT return is “validated” by an audit firm, board of statutory auditors, or authorized tax lawyers.
  • Provide a “fast-track” VAT refund mechanism.


Read a June 2017 report [PDF 182 KB] prepared by the KPMG member firm in Italy

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