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Art. 4 of Law Decree n. 193/2016, turned into Law n. 225/2016 provides for instructions on tax recovery, which imply new obligations for taxpayers, particularly concerning VAT.

The Italian Budget Law for 2017 provides for the introduction, in the national law, of the “VAT Group” scheme as set forth by art. 11 of EU Directive 2006/112. The following VAT taxable persons are entitled to set up a VAT Group: VAT taxable persons established in Italy and VAT taxable persons running a business activity or performing an art or profession provided that they are closely bound to one another by financial, economic and organizational links.

On 19 December 2016 a conference on VAT aspects of e-commerce, organized by the VAT Commission of the Roll of Chartered Accountants, will be held at the premises of the Roll in Rome. Mario Spera, Principal at Bernoni Grant Thornton will intervene in the conference.

Important innovations concerning VAT warehouses were introduced by Law Decree n. 193/2016, with the aim of preventing possible frauds in this sector. Essentially, the regulation provides distinct rules for the removal of goods from VAT warehouses depending on how they were placed in the warehouses.

On 2 December 2016 the Law Decree 22 October 2016 n. 193 (“Tax decree”) completed its legislative iter with the publication in the Official Gazette of the consolidated text, post amendments, occurred at the time of the conversion into Law.

Law Decree no. 193 dated 22 October 2016 introduced new measures, such as the abolition of Equitalia (Italian tax collection office) starting from 1 July 2017, regulations on local tax collection and strengthening the collection terms in general, the reopening of the terms for the participation in the voluntary disclosure programme, as well as of provisions concerning VAT more strictly, aimed at preventing tax avoidance.

The Council of the European Union accorded Italy an extension to continue applying – up to 31 December 2019 – a special derogation from the provision of Directive 2006/112/CE, concerning the limitations to deduction of VAT borne on the purchase of some kinds of means of transport and on the related expenses. The extension of such limits is aimed at significantly reducing the administrative burden and to prevent tax evasion.

30.000 Euro is the new extended limit up to which the application for refund is allowed without the need of the stamp of approval by an accountant or signature by the statutory auditors as regards those subjects indicated in art. 03-bis, para. 3 of Presidential Decree 633/72, nor of the granting of a financial guarantee by those subjects indicated in art. 38-bis, para. 4 of Presidential Decree 633/72.

The use of vouchers is constantly increasing on the market, as it makes it easier for consumers to access goods without using cash. With Directive 2016/1065 dated 27 June 2016 the Council of the EU recognised the need to introduce specific norms on the VAT treatment of vouchers throughout the EU and set forth new provisions aimed at regulating their circulation and redemption. The new common norms, which must be implemented in the domestic legislation, do not differ significantly from the standpoint of the Italian Tax Authorities over the years.

The budget bill for 2017, within the “Industry 4.0” strategy, will renew those provisions allowing “super-amortization”, and introduce “hyper-amortisation” for some specific capital goods, in order to incentivize the technological update of Italian businesses, their competition on domestic and international market and, more generally, economic recovery.

The Italian draft Budget Law for 2017 provides for the introduction in the domestic legislation of VAT grouping schemes.

The tax benefit aimed at facilitating the assignment and transfer of movable and immovable assets registered in public records to shareholders is substantially relevant for income tax purposes. However, it can have also VAT implications.

The European Commission, admitting the need of a modernization of the VAT system, outlines the action plan that it intends to adopt, mainly in a perspective of a system simplification and a greater attention to SMEs.

Uncertainty on the stamp of approval in case of Group VAT

Criteria for determining the VATable base of assignments of assets

Charges on bitcoin trade are VAT exempt