Tag: Italy

Italy – News on mandatory e-invoicing regime and other VAT compliance obligations

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Following to the approval of the Financial Law 2018, starting from 1 January 2019, a mandatory electronic invoicing obligation will be in place for the supplies of goods or services carried out between subjects that are resident, established or VAT registered in Italy.

The e-invoicing obligation is aimed, on one hand, to spread the digital culture among the companies and, on the other hand, to prevent the tax evasion and VAT fraud.

Therefore, taxpayers will be required to set their informatics systems in order to send and receive .XML e-invoices through the Interchange System (so-called “SDI”). The level of intervention on the informatics system will depend on different variables and could be limited if one or more intermediaries are used in the process.Read More »

Italy – VAT deduction on pharmaceutical pay back amounts

Michaela MerzLeave a comment

Discounts reduced the VAT value of pharmaceutical supplies:
Boehringer Ingelheim Pharma GmbH & Co. KG (C-462/16). Decision available here.

The Taxpayer, a German manufacturer, supplies pharmaceutical products to pharmacies. Retrospective discounts linked to the value of those supplies are paid, not to the pharmacies but to private health insurers which reimburse the insured persons buying the products from the pharmacies. The ECJ held that the Taxpayer can adjust the VAT due on its supplies retrospectively, even though the insurer was not in the original chain of supply. This judgment may be significant, and  businesses may wish to consider protecting their position on adjusting VAT.

One question that may arise from this judgment is whether the fact that the discount in this case is a statutory discount restricts its scope. This might be one way that tax authorities could seek to narrow the scope of a favourable judgment. But this should not discourage suppliers in similar situations from considering protecting their position, as this is very positive and the ‘statutory’ aspect is only one consideration in a complex issue.

Please find information on how Italy will deal with the issue:
Newsalert – IVA e pay back farmaceutico (PwC, final 8 gennaio 2018)

 

 

Italy – important changes

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Introduction of the so called “European VAT group”

The Budget Law 2017 has introduced, in the Presidential Decree no. 633/1972, the new title V-bis which regulates the institute of the VAT group, effective from January 1, 2018, subject to prior consultation of the European VAT committee.Read More »

Italy – changes in the use of VAT warehouse as from 1 of April 2017

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477118_web_r_by_barbel-jobst_pixelio-deWith effective date April 1st, 2017, significant changes will be introduced in relation to the use of the VAT warehouse and the way to account for VAT following the withdrawal of the goods.

In particular, art. 50-bis of Law Decree no. 331/1993 (the provision regulating VAT warehouse simplification in Italy) has been amended as follows:Read More »

Easy guide to your Italian business

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734381_web_R_B_by_VauEm_pixelio.de
We offer this publication to all those people with entrepreneurial spirit who are interested in understanding the essentials of the Italian system, with the hope of contributing to the success of their business.

A growing number of companies, both small and large, consider the world to be their market of reference. One of the prerequisites to accomplish this aim is to know and interpret local rules and regulations.Read More »

Italy – Semplificazioni fiscali – details available how to avoid bank guarantee

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PwC_PC_Italy_Venice_MB_001.jpgLegislative Decree no. 175/2014, so called “Semplificazioni fiscali” concerning tax simplification in connection with the VAT refund claims was introduced in 2014. When released, the rules concerning the simplification procedure were unclear, especially in the application for non-EU companies. Read More »

Changes in the EU legislation

Michaela Merz1 Comment

711122_web_R_by_FotoHiero_pixelio.de (1)4 Ministers of culture asked for change in EU legislation to tax e-books exactly as physical books.

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Finland – Supreme Administrative Court decision on the VAT treatment of non-printed books after ECJ decision (K Oy – C-219/13)

Michaela Merz2 Comments

PwC_Teetasse_EN2015 seems to start with book related VAT news in the EU. After the ECJ’s judgment in the K Oy case (C-219/13), the Finnish Supreme Administrative Court (“SAC”) delivered its ruling at the end of December. Read More »

Italy: reduced VAT rate of 4% on e-books from 1 January 2015

Michaela Merz1 Comment

PwC_R_Vinesh.Naidoo_Yoginee.Sharma_Vernie.Slabert_SouthAfrica_Jhb_P_CW_0017.JPGThe Italian Parliament passed the 2015 Finance Law on 22 December, which applies the 4% VAT rate to e-books as of 1 January 2015. According to the legislation any publication that is identified by an ISBN code (International Standard Book Number) and transmitted through any physical or electronic means, should be considered as a book and, as a result, subject to the 4% reduced VAT rate.Read More »

Italy – simplification in the VAT Law and some new obligations as from 1 of January 2015

Michaela Merz1 Comment

People sitting on a long bench talking (3) - PwC, Photo_RGB_PC_48164.jpgOn November 28, 2014, the Legislative Decree laying down provisions related to tax simplification so called “Decreto semplificazioni fiscali” (Legislative Decree no. 175 dated November 21, 2014) has been published in the Official Italian Gazette.Read More »