Country overview: ItalyPlace of Supplies of Services (PoSS) rules in 2010 |
| Italy | |
|---|---|
| Significant changes between draft law and Directives? |
Please consider that, according to the Legislative Decree implementing the new VAT rules for Italian purposes, it is possible a discrepancy on the chargeable event of supply of services, between intra-EU subjects, ruled by the reverse charge mechanism. In this regard, the art. 66, paragraph 2, of 2006/112/EU Directive, provides for the impossibility of applying the possible derogations provided by art. 66, paragraph 1, of 2006/112/EU, about the time of supply of services ruled through the reverse charge mechanism according the art. 196 of said Directive. For these transactions, according to the Directive, the time of supply should be when the service is performed, without derogations applicable. According to art. 6 of the Presidential Decree no. 633 of 1972, however, the time of supply of services is related to the payment of the service or when the invoice is issued. It is foreseen however a change in the current law to adjust this discrepancy. |
| Use and enjoyment rules for B2B transactions? |
“Use and enjoyment rules” are adopted to:
In this case, the place of supply is in Italy if:
In this case, the place of supply is in Italy if:
In this case, the place of supply is in Italy if:
|
| Force of attraction rules regarding PE's? | The “force of attraction rules” in relation to PE’s are not applied in our country. The foreign company have however to use its Italian PE to fulfil the obligations on input and output VAT transactions (where it has to apply Italian VAT) but the PE does not have effect on the place of supply rule on these transactions. |
| Do sanctions apply for failing to report reverse charged services? | According the article 6, paragraph 1, of Legislative Decree no. 471 of 1997, the penalty applicable is between 100% and 200% of VAT. We are supporting with the Tax offices (even if their position is the application of the penalty of 100% up to 200%), the application of the penalties foreseen for local reverse charge according to art. 6, paragraph 9-bis of Legislative Decree no. 471 of 1997. Particularly, according said provision the penalty is the 3% of the VAT (with a minimum of 258 Euro and a limit of 10.000 €. Said limit is applicable only for 2010). |
| Projected time period for ESL's for services? | The time period for filing ESL’s for intra-Community supplies of services from 2010 is monthly or quarterly depending on the thresholds:
|
| Do thresholds apply to ESL's for services? | Are not provided minimum thresholds to filing the ESL’s for the service. |
| ESL filing deadline? |
For monthly ESL filing, within the 25th of the following month to the reference month. For quarterly ESL filing, within the 25th of the following month to the reference quarter. Please consider that until 30 April 2010, the ESL may be submitted electronically (e.g. with physical support, floppy, etc., made in accordance to Customs program) to the customs offices within the 20th of the following month to the reference period. |
| Do sanctions apply for late/incorrect submissions of ESL's for services? | On the missing filing of Intrastat returns a penalty from €516 to €1.032 is applicable (for each missing return) for fiscal purposes. Penalties could be in principle reduced if the taxpayer performs a spontaneous regularization. Penalties from €516 up to €5.064 could be in principle applied for statistic purposes. |
| ESL for services format already published? | The ESL new format has been realized by the Customs Office. A Decree of the Ministry of Finance will have still to be published in the next days to officially foresee the concrete rules of Intrastat obligations. |
| Projected time period for ESL's for goods? |
The time period for filing ESL’s for intra-Community supplies of goods from 2010 is monthly or quarterly depending on the thresholds:
|
| Do thresholds apply to ESL's for goods? | Minimum thresholds to file the ESL’s for the goods are not foreseen. |
| ESL filing deadline? | For monthly ESL filing, within the 25th of the following month to the reference month. For quarterly ESL filing, within the 25th of the following month to the reference quarter. |
| Impact on e-filing procedure? | According to the new provisions, the filing of ESLs can only be made through electronic procedure (after 20 April 2010). |
| VAT return adapted? | We do not have yet available 2010 VAT return. |
| Final date for 8th Directive refund requests is 30 September? | The new procedure is foreseen by the Legislative Decree implementing the VAT package, however a the practical procedures and deadline will be defined by a further measure issued by the Revenue Agency (not issued and available in draft yet). |
For further information, please contact Paul Bakker, DTT Global Indirect Tax Coordinator, or one of the Deloitte member firm contacts listed in the Overview of Member State legislation and materials.
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EU: The VAT package
Overview of the new rules
EU legislation
Overview of member state legislation and materials
