Upcoming tax changes in Italy

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Italy is one of the major economic players in the European Union. Recently, various changes have been made to the VAT system in this country.


Since January 1st, 2015, Italy has introduced the split payment mechanism (already present in Romania and soon in Poland). As of January 1st, 2018, this system is being extended to include certain companies, particularly public economic organizations.


The Italian minister declared the Decree / Law 148/2017, aimed at appreciably raising the standard and reducing VAT rate, will not be applied from January 1st, 2018 but from January 1st, 2019.

As a result, the government announced in its budget bill the postponement of the growing increase in the various rates, namely :

  • Increase of the normal rate from 22% to 24.2% and;
  • Increase of the reduced rate from 10% to 11.5%.


Like many European countries, Italy is subject to the electronic invoicing system, which is governed by Directive 2014/55 / ​​EU (eg the SII in Spain).

The 2018 Finance Act provides for the introduction of the system for the mandatory declaration of electronic invoices in real time with the Italian Tax Administration, “Sistema di Interscambio – SDI” from January 1st, 2019. This is a tool for fighting against fraud and VAT evasion.

This mechanism will be mandatory for all companies established or registered for VAT in Italy and will benefit from a fairly wide scope of application (applicable to B2B transactions and limited for B2C transactions). However, some companies will have to apply it on July 1st, 2018, since they carry out operations in a particular sector, the supply of hydrocarbon for example.

Penalties may be applied in case of non-compliance with these obligations. Lastly, it is planned to introduce some incentive mechanisms, under certain conditions, as well as some simplification measures.

In order to avoid sanctions and to be accompanied by experts in the field, do not hesitate to contact the ASD Group team.

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