The Italian government is expected to discuss a bill that would replace and expand the existing value added tax (VAT) rules that currently apply to electronic marketplaces for certain types of electronic goods. The proposed measures would require additional information reporting about the sales and would apply to all types of goods (not just electronic goods).
Under current rules, a person who facilitates (through the use of electronic interfaces such as electronic marketplaces, platforms, portals, or similar tools) the remote sales of mobile phones, video game consoles, tablet PCs, and laptops is deemed to have received a supply from the “initial seller” (a deemed business-to-business supply) and to have made a supply to the final customer (a deemed business-to-customer supply) when: (1) the goods having an intrinsic value not exceeding €150 are imported from third countries, or (2) the intra-EU remote sales of such goods are made by non-EU suppliers to business-to-customer consumers. These taxable persons must remit VAT to the Italian Treasury for transactions made in the first quarter of 2019 by 16 April 2019 (or if made by 16 May 2019, with an additional 0.4% surcharge).
The proposed rules are expected to require additional information reporting about the supplier, the total number of items sold in Italy, and the total sales price of the items sold in Italy (or an average sales price). The first report would be due in July 2019. Further, the proposed measures would impose VAT liability on the seller when such information is not provided.
Read an April 2019 report [PDF 172 KB] prepared by the KPMG member firm in Italy
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.