Two new VAT communications will be introduced in the Italian VAT system starting from the year 2017.

The first one is the “Communication of the data of the periodical VAT liquidations” (also called “quarterly VAT Return”) and the second one is the “communication of the data contained in the issued and received invoices” (also called “quarterly spesometro Return”)

Both communications will have to be filed by electronic means each quarter

The amount of the penalties foreseen in case of non-compliance have been also updated compared with the previous text of the Decree.

All the operators (VAT registered in Italy, resident or non-resident) are obliged to file such communications.

In addition, the new law introduces the following changes:

- the ceiling to obtain an Italian VAT refund without being obliged to file a bank warranty will be raised up to Euro 30.000 on a yearly basis (currently the ceiling is Euro 15.000);

- the Italian VAT numbers that have been inactive during the past 3 years will be terminated by authority by the Italian Revenue Agency.

Some previous communications with the Italian authorities will be abolished as a result of these changes. 

These changes highlight the importance of dealing with knowledgeable consultants in Italy to be able to navigate through all this red tape.