Italy VAT
Reduction to statute of limitations
Resulting from the publication of ‘Manouvrina decree’, the statute of limitations for VAT deduction in Italy has been reduced. Going forward, VAT deduction will only be acceptable by 30th April of the subsequent year. Annual VAT returns are due on this date, hence a purchase invoice will only be deductible until the last day in which the Annual VAT return for the period in which the invoice was incurred, can be submitted.
The statute of limitations covered a much longer period, before these changes, as VAT could be deducted until the 31st December of the fourth year, following the year in which VAT was incurred.
As part of a wider reform of Italian VAT compliance obligations, it has now been confirmed that a new quarterly VAT return (‘Comunicazione IVA trimestrale’), after a publication from the Italian tax authorities on 26th March, 2017. It must be submitted in 2017 with the first deadline on 31st May, 2017.
This new VAT return must be submitted by everyone, with the only alteration that quarterly filers must submit only ‘one’ form for the quarter, when monthly filers will have to submit ‘three’ forms denoting to each month of the quarter. This new VAT return will include the following information:
- A summary including all basic information of the company;
- A ‘VP’ box reporting all the transactions from the local sales and purchases, as well as intra-community transactions (‘liquidazioni’). This box will include the following details:
- Period referring to the ‘liquidazioni’
- Total amount of sales and purchases (NET)
- VAT charged and deducted
- VAT due, or in credit
- Any credit to be reported
- Prepayment
To submit each VAT return, the deadline is fixed on the last day of the second month following each quarter. For 2017, the deadlines are as follows:
- 1st deadline: 31st May, 2017
- 2nd deadline: 18th September, 2017
- 3rd deadline: 30th November 2017
- 4th deadline: 28th February, 2018
In addition to the new quarterly VAT return requirements, Italy introduced new electronic reporting obligations for sales and purchase invoices (Spesometro). For 2017, taxpayers were required to submit invoice data covering the first six months of the year by 16 September 2017, with the second half of 2017 due by 28 February 2018.
From 2018, these invoice reporting obligations were scheduled to move to a quarterly filing basis.
Intrastat reporting changes
The Italian Parliament also confirmed interim changes to Intrastat reporting requirements. For 2017, Intrastat acquisition reporting was reinstated, while reporting of dispatches continued to be required. These arrangements were intended as transitional measures pending further reforms to VAT reporting obligations.
The deadlines for 2018 have still to be confirmed, but will probably match the new quarterly ‘Spesometro’ filing deadlines. Further updates will be provided by amavat Europe in due course.
2026 Update: Italy VAT Deduction, LIPE, E-Invoicing and Intrastat
The shortened deadline for exercising the right to deduct Italian input VAT remains relevant. In general, input VAT must be deducted no later than the annual VAT return for the year in which the right to deduct arose. For 2025 transactions, the annual VAT return is filed between 1 February and 30 April 2026, so businesses should ensure eligible 2025 purchase invoices are received, recorded and deducted by that deadline.
The 2017 quarterly VAT settlement communication, now commonly referred to as LIPE (Comunicazione delle Liquidazioni Periodiche IVA), is still part of Italian VAT compliance. The standard LIPE deadlines are generally: 31 May for Q1, 30 September for Q2, 30 November for Q3 and 28 February of the following year for Q4.
However, the old Spesometro invoice reporting system is no longer current. Italy has since moved to mandatory electronic invoicing through the Sistema di Interscambio (SDI). Domestic B2B/B2C e-invoicing has applied broadly since 2019, while cross-border reporting through the old Esterometro was replaced from July 2022 by invoice-by-invoice transmission via SDI using specific document types for cross-border transactions.
Intrastat reporting also remains relevant, but the rules have evolved. Intrastat returns are generally submitted by the 25th day of the month following the reporting period. From 2026, Italy increased the threshold for monthly reporting of intra-EU acquisitions of goods from EUR 350,000 to EUR 2,000,000, reducing the reporting burden for many businesses.
Businesses registered for VAT in Italy should therefore review three key areas: timely booking of purchase invoices for VAT deduction, correct LIPE filing, and proper SDI transmission for domestic and cross-border invoices.
amavat Europe provides a one-stop-shop solution for VAT obligations 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.
