close
Share with your friends

Italy: Transition rule if “no-deal” Brexit; VAT and other taxes

Italy: Transition rule if “no-deal” Brexit; VAT

A “law decree” provides guidance for various Italian industries and sectors in the event of a “no-deal” Brexit—including specific measures concerning value added tax (VAT).

1000

Related content

The law decree (Decreto Legge no. 22 of 25 March 2019) was published in the Italian official gazette on 26 March 2019 to address tax rules for banks, insurance, financial institutions and, to a certain extent, consumer and industrial markets in the event of a no-deal Brexit.

  • In general, the law decree provides that existing Italian tax law provisions—including those related to an EU directive—that are currently effective as a result of the UK’s membership in the EU will continue to apply for an 18-month transition period, starting from the effective date of a no-deal (“hard”) Brexit.
  • The law decree also specifically provides that Italian law provisions implementing EU directives or regulations with regard to VAT and excise taxes (duties) will continue to apply during the 18-month transition period “if compatible” with a new legal framework.

The Italian Ministry of Finance is directed to issue decrees to implement these general provisions during the transition period.

KPMG observation

Tax professionals anticipate that any guidance issued by the Finance Ministry would clarify what are “compatible” conditions.


Read an April 2019 report [PDF 75 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.

Connect with us

 

Want to do business with KPMG?

 

Request for proposal