Sales of Domestic Goods to Italian VAT Payers

As regards sales of domestic goods to Italian VAT payers, Italian invoices (meaning: invoices including the Italian VAT number of the foreign business only!) cannot be considered …

As regards sales of domestic goods to Italian VAT payers, Italian invoices (meaning: invoices including the Italian VAT number of the foreign business only!) cannot be considered as real invoices. Issue has been pointed out by Agenzia delle Entrate memo 21/2015.

With regard to the abovementioned case, Agenzia outlines that – as per art. 17, par. 2, Italian VAT decree – it is up to the Italian client to apply Italian VAT through the reverse charge mechanism.

More in detail:

• As to intracommunity sales, the Italian client has to complete the invoice issued by the EU supplier with the Italian VAT relevant data;
• As to non EU sales, Italian client has to raise a self-invoice.

In both cases the Italian VAT number (achieved through direct identification or through fiscal representation) of the non-resident business doesn’t play any role as regards invoicing procedures.

 

Alessandro Garzon
TBS Tax Back Service srl.