With the delegation law entered into force last 28 of October 2014, Italy implemented …
With the delegation law entered into force last 28 of October 2014, Italy implemented:
- Directives on Reverse Charge (2013/43/UE) and Quick reaction Mechanism (2013/42/UE).
- Split payment method, which provides that “the purchaser pays the VAT to a blocked VAT bank account which can only be used by the supplier for paying VAT to his suppliers’ blocked VAT bank account. The advantage of this model is that, in an early stage of the VAT collection process, the VAT collected is physically transferred to a blocked VAT bank account with the tax authorities’ bank. This model allows the tax authorities to monitor and block funds on the VAT bank accounts and prevent taxable persons from disappearing with VAT funds paid to them”.
- New deadline for Italian VAT return, according to article 252(1) of the VAT Directive, the obligation to issue the annual communication of VAT data meanwhile the annual return of income tax have been repealed. Such amendment of article 8-bis of Presidential Decree 322/98 will comply with EU law by extending the deadline for the presentation of VAT declaration, making autonomous the VAT return and the income tax return. The declaration’s issue, in fact, is due after two months from the expiration of the VAT period, which in Italy corresponds to a year. The new deadline is going to be applied from 2015.
Prof. Paolo Centore