Law Decree no. 148/2017, with reference to VAT, has introduced amendments as regards subjects towards which suppliers of goods and services must apply the split payment mechanism. It has extended split payment virtually to all companies held by Public Administrations or other entities that are already applying the split payment mechanism. However, such further extensions imply heavy consequences for suppliers of goods and services, which will see an increase in their VAT outflow.
New provisions contain a different determination of the subjects to which split payment is applied, which partially coincides with previous dispositions, but partially changes it substantially, thus implying a re-examination of all categories of concerned subjects. With this regard, in order to identify these subjects, reference should be made to the relevant lists issued by the Tax Authorities, even though the additional categories introduced by the new provision have not been included, yet.
It should be pointed out that the Revenue Office has provided some clarifications on the regulation actually in force, pending the conversion of the abovementioned Law Decree no. 148/2017.
For more information, contact Mario Spera.
