Italy
Italy recently published new regulations affecting non-EU resident companies engaging in intra-EU trade of goods to and from Italy.
Businesses involved in intra-EU activities, including the movement, purchase and sale of taxable goods are required to register in the VAT Information Exchange System (VIES). This system is a database of all EU VAT numbers that are authorised to undertake intra-EU activities and enables users to obtain rapid confirmation of companies’ VAT numbers. It also allows EU VAT authorities to monitor and control the flow of intra-Community trade to detect irregularities and VAT fraud.
Due to these new regulations, non-EU entities performing intra-EU transactions will now have to issue a financial guarantee of at least €50,000 to the Italian tax authorities to register for the VIES. Companies already registered will also have to provide a guarantee and will receive a written request from the Italian tax authorities after the regulations are implemented.
This guarantee must be valid for at least 36 months and can be provided in the form of state securities, bank guarantees, or surety bonds. The Italian tax authorities also confirmed that non-compliance with the new regulations will result in the automatic closure of VAT numbers or cancellation of VIES registration. Entities will have a 60-day grace period after this is implemented to rectify any issues before penalties are enforced.
Norway
During January, the Norwegian Ministry of Finance, Skatteetaten, launched a study into the introduction of mandatory electronic invoicing for business-to-business (B2B) transactions. As part of this study the Directorate of Taxes has been tasked with outlining the requirements and presenting a report by mid-June 2025.
Electronic invoicing has been mandatory in the Norwegian public sector for business-to-government (B2G) transactions since 2019, and by extending this requirement to B2B transactions it is hoped that it will reduce common errors on invoices and help prevent VAT fraud in the country.
Slovakia
The Slovakian parliament is currently reviewing draft bills that will expand the list of goods eligible for the 5% reduced VAT rate to include additional food and hygiene items and reduce the standard VAT rate in the country from 23% to 20% (which was the rate in effect until 31 December 2024).
If accepted, these changes will be implemented from 1 July 2025.
The above news was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected].
