Indirect Tax News - February 2020

New VAT provisions for 2020 and beyond

Law Decree no. 124/2019 became Law no. 157/2019, which was published in the Official Italian Gazette of 24 December 2019. The law introduces some simplifications regarding VAT obligations.

For transactions carried out beginning 1 July 2020, using information acquired from the electronic invoices exchanged through the telematic exchange system (the so-called SDI), the Italian Tax Authority will make available drafts of the following documents:

  1. VAT books related to sales and purchases;
  2. Quarterly communication of periodic VAT calculation (so-called LIPE).

If the taxpayer confirms and/or amends the draft data proposed by the Tax Authority, the taxpayer will be exempted from the obligation to keep VAT books in which the issued and received invoices are recorded.

Regarding transactions carried out beginning in 2021, the Tax Authority will also make the draft of the annual VAT return available.

Law no. 157/2019 also amended the timeframe for transmission of the so called "esterometro", which is the communication of transactions with non-resident counterparts. Beginning in 2020, the electronic filing of such communication must be carried out on a quarterly basis by the end of the month following the relevant quarter.

Francesco Grandolfo

Fabrizio Papotti