VAT in Italy will rise to 24.2% in 2019
VAT in Italy will rise to 24.2% in ’19
On 31st October, 2018 Italy’s 2018 Budget (Manovra), sanctioned the postponement of 2018 VAT increase from 22% to 24.2%.
The planned rises in rates, to support € currency fiscal targets, are now set as follows:
| Standard Rate | Reduced Rate | |
|---|---|---|
| Today | 22% | 10% |
| 2019 | 24.2% | 11.5% |
| 2020 | 24.9% | 13% |
| 2021 | 25% | 13% |
From 2019 electronic invoices will be compulsory
From the 1st January, 2019 Italy requires all private taxpayers to produce electronic invoices, with a number of sectors, including the oil industry starting from January, 2018.
Electronic format for all sales invoices to public bodies has been required since 2014. These invoices must be provided in XML, as this format can be accepted by the Italian Electronic Exchange System, which administers and controls reporting of VAT invoices. e-Invoices are validated via secure digital signatures.
This requirement is aimed at helping to reduce VAT fraud. Within the EU Italy has the largest VAT gap – the estimated difference between anticipated VAT revenues against actual receipts. It has been at the forefront of efforts to implement technology solutions to help tackle VAT fraud.
amavat® provides a one-stop-shop solution for VAT Compliance within Europe. We assist clients with a single point of contact that speaks their language and handles all VAT related issues with a standard and cost efficient approach.
If you have any queries or questions, please do not hesitate to contact amavat®.
To find out more information please visit www.amavat.eu
