The representative must be established within the European Union. General services supplied by a taxable person to another taxable person (business-to-business or B2B) fall within the scope of Italian VAT where the services are supplied to Italian taxable persons or to ENTITIES of a non-resident Italian entity. If goods or services are delivered directly from abroad to an end user (so-called B2C transactions), it is necessary to request a VAT identification number via their Italian VAT identification number (REPRESENTING VAT, permanent establishment or direct identification). The general rule for services supplied by a taxable person to a non-taxable person (B2C) determines the place of taxation with the country of residence of the service provider. According to EU directives and regulations, companies that trade within the European Union or intend to trade within the European Union must submit an application to the Italian tax authority (Agenzia delle Entrate) for the registration of their VAT identification number in the “VIES register” as a condition for the start of negotiation. The sharply reduced VAT rate (4%) applies to licences for television, newspapers, magazines, books, medical equipment for the disabled. A mandatory electronic invoicing obligation has also been introduced for supplies of goods between taxable persons established in Italy and taxable persons established in the Republic of San Marino. However, this obligation is not yet in force and awaits technical rules and instructions from the Italian tax authorities. The Italian tax authorities provide a payment service and an F24 project in the reserved area Fatture e Corrispettivi of the tax box (Cassetto Fiscale) with an indication of the stamp duty due (determined on the basis of the “DatiBollo” of the Tax Box in box 220.127.116.11 of. XML invoice).
In 2018, the income tax rates were as follows: nevertheless, the limitation period covers a much longer period in terms of VAT. In this case, the tax authorities may require payment of VAT no later than 31 December of the fourth year following the period in which the VAT was due. As part of the electronic transmission of the counterparty described above, the new “Tax Revenue Lottery” has been introduced. The lottery is expected to come into effect on January 1, 2021. In addition, it should be noted that from 1. January 2021 following the transposition of Article 14a of Directive 2006/112/EC in Italy, where a taxable person allows the distance marketing of mobile phones, game consoles, tablet PCs and laptops by means of an electronic interface such as a virtual marketplace, platform, portal or similar means: VAT is levied on the recipient of the goods or services under the reverse charge mechanism. Taxable persons established or established in Italy must submit to the Italian tax authorities the cross-border notification containing the data relating to the supplies of goods and services delivered/received by parties not established in Italy or registered for VAT purposes. This obligation does not apply to non-established taxable persons, even if they are registered in Italy by direct identification for VAT purposes or by a tax representative, as well as to persons eligible for special tax treatment (`régime di vantaggio` or `régime forfettario`). From 2020, the above notification must be submitted quarterly (i.e. at the end of the month following the relevant quarter). In particular, the above deadline applies to documents issued/received in November 2019.
When determining the customs value, the following elements are added to the price, provided that they return to the buyer and are not included in the price (non-exhaustive list): the deduction of VAT before the start of the economic activity is allowed only under certain conditions. Typically, a business can recover VAT incurred prior to VAT registration once all historical returns and VAT payments have been settled. All penalties for late submission and late payment must also be paid before deduction of these amounts. A case-by-case analysis must be carried out. Taxpayers who use the “register of counterparties” have the new obligation to store the data of the considerations on a daily basis and to transmit them to the Italian tax authorities. The delivery time is the time of closing in the following cases: The Italian tax on financial transactions applies (i) to cash shares, (ii) derivatives and (iii) to high-frequency trading transactions. From 1 July 2019, the invoice can be issued after 12 days from the tax office for VAT. In order to combat tax avoidance in e-commerce and reduce the VAT gap, a new specific compliance obligation for taxable persons has been introduced, facilitating the distance selling of imported goods or the distance selling of goods within the European Union (EU) through the use of an electronic interface such as a virtual marketplace, a platform, portal or similar means (i.e. marketplaces). From 1 January 2020, it will be possible for the taxable person to transfer the quarterly VAT credit requested for a contextual refund with the quarterly VAT statement. The above provision applies in particular to VAT credits claimed from 1 January 2020. The point of taxation is the time when VAT becomes chargeable.
When determining the tax point applicable in Italy, the following rules apply: the obligation to store and transmit the data of the counterparty has entered into force: the main advantages for taxpayers are the exemption from the obligation to keep invoices provided for in Article 24 of Presidential Decree No. 633/1972 and the cancellation of certain accounting procedures. such as the issuance and withholding of tax revenues (i.e. “scontrini” and “ricevute fiscali”). From 23 October 2018, the right to deduct input VAT paid on the vat settlement date may be advanced for purchase invoices received and recorded in the 15th month following the month in which the transaction is carried out. The Italian tax authorities have provided important information in this context. Among other things, the date from which the deduction period begins to run is determined if the following conditions occur jointly: however, notwithstanding the fact that the non-resident has been identified for VAT purposes, the Italian economic operator must fulfil all the obligations arising from the abovementioned reverse charge mechanism. In addition to the quarterly cross-border communication mentioned above, persons subject to VAT must send notifications of periodic VAT balances to the Italian tax authorities on a quarterly basis. In this context, in the context of the 2020 Finance Law, the Legislative Decree extended the application of the reverse charge mechanism to the provision of services (with a few exceptions) through public procurement, subcontracting contracts, contracts based on consortium members or other contractual relationships, whatever they may be called, which are carried out with the predominant use of workers on the client`s premises and with the use of capital goods belonging to the client or to the client in any form (the effectiveness of the above-mentioned legislation depends on the granting by the Council of the European Union of a specific authorisation). With regard to the VAT treatment of cultural, artistic, sporting, scientific, educational, leisure and similar services, VAT is due in the country where the activities were physically carried out for B2C activities, and VAT is due in the beneficiary`s country for B2B activities other than authorisation. . .