If you are an international businessman, it is essential that you prepare and file your Italy VAT Submissions correctly. While most countries have standardized regulations, some may still not meet these standards. Here is a look at what you should know about Italy VAT Submissions. This article also discusses how to calculate your VAT amount, filing deadlines, and refund options. You can also read about the Taxes on Digital Services in Italy. This will help you choose the best VAT software for your business.
Taxes on digital services in Italy
The 2020 budget law introduced a new digital services tax (DST) regime in Italy. The new tax regime applies to certain digital services that involve a high degree of user involvement in value creation. The tax will be paid by service providers, both Italian and foreign, and will apply to B2C transactions. The law applies to both the sale of data and the provision of digital services. This article will provide more information about this tax and its implications for businesses.
The tax on digital services in Italy is based on the revenues gained from the digital interface. The ratio of all transactions that occur within a calendar year – including both Italian users and supplies – must be used to determine the taxable amount. However, this method has been highly criticized, as it raises double taxation issues. To avoid double taxation, it is advisable to make a separate calculation for each digital service.
Taxes on digital services in Italy have strict rules regarding the scope of these taxes. The scope of digital services includes streaming, online, and downloadable content. Digital services that involve an interface are exempt, while those provided directly between users are subject to DST. Guidelines provide examples of “borderline” cases. A digital service can also be exempt if it provides services ancillary to the main supplied service.
Under the DST, intercompany transactions between controlling companies are excluded. The aim of DST is to avoid double taxation. Article 2359 of the Italian Civil Code defines “control” as a majority ownership. Transactions between affiliate companies are also included. This can significantly impact the final calculation. It should be noted that a multinational group may appoint a single entity to fulfill its filing and payment obligations. The appointed entity also relieves the other Italian resident entities of their joint and several liability.
A global agreement has been signed between the EU and Italy to implement the DST. This deal will impose a 15% minimum corporate tax on large firms. The OECD is working on an agreement that enables countries to tax the digital economy at an international level. However, the Italian government has yet to implement this agreement. It is unlikely to happen before the deadline. In the meantime, it will remain unclear what effect the deal will have on Italian businesses.
Processing options for Italy VAT submissions
In Italy, the VAT authorities have strict rules regarding cross-border invoicing. As of October 1, 2021, businesses registered in Italy must issue electronic invoices to their counterparts in San Marino. Before this date, businesses can issue paper invoices but must follow the specific procedures set by the Decree. However, starting July 1, 2022, businesses must issue electronic invoices only. The Decree provides for several processing options for Italy VAT submissions.
The main processing option for Italy VAT submissions is the electronic invoicing process. During this process, the usual exporter must submit an electronic declaration of intent. This declaration can cover multiple transactions, and the Italian tax authorities will issue a receipt containing a specific protocol number. Once received by the tax authorities, the taxable person can complete his or her Italy VAT submission. The tax authorities will then send the exporter a copy of the receipt.
Processing options for Italy VAT submissions can be done manually or automatically. However, it is advisable to use the online version of the Italian VAT submissions if you have many clients in Italy. The Italian VAT law requires companies to register, complete Italian VAT returns, and make any additional declarations. Additionally, Italian VAT invoices should be issued on the date of supply of goods or services, and at least 15 days after the end of the month.
The Annual VAT File Build program creates records in the F00900 table and summarizes the information in the F0018 table for each invoice and voucher. This program can be run once a year or as often as you wish. You can specify the record type, customer, supplier, and customs authority. To run the program, you must provide the tax ID of the customer and the amount of money on which taxes are assessed.
Another option for processing Italian VAT submissions is to use a software application for this purpose. This web application can process taxes and generate a CU file from a Microsoft Excel sheet. The software allows businesses to submit Italy VAT returns electronically by selecting the appropriate tax rate. Processing options for Italy VAT submissions are available using Intrastat software. This solution requires a small amount of work on their part, but it is a valuable tool to use for processing VAT in Italy.
Filing deadlines for Italy VAT submissions
The reporting regime for VAT in Italy has been overhauled in 2017. While companies used to submit annual returns, the reporting regime has now been simplified to quarterly reports and invoice listings. Filing deadlines are also more convenient than ever before, with the first quarterly filing due on the 12th of June and the final one due on 16th March of the following year. There are several other deadlines that businesses must adhere to in order to stay compliant.
Italian taxpayers should file their VAT returns on time, and companies should calculate their VAT monthly. After calculating VAT, companies must file their data electronically, and the Italian tax authorities must receive the payment on or before the sixteenth of the month. For businesses with Italian residence, filing deadlines are also crucial. For those with a presence in Italy through e-commerce, filing deadlines are even closer, with the VAT payment due by the 16th of the month.
To meet these deadlines, Italian taxpayers must file an advanced VAT payment in December for the reporting period December-Q4. Small businesses without much revenue must not file periodical VAT returns. To get started, contact Meridian Global Services. We’ll help you prepare and file your returns in Italy.
In order to comply with Italian tax regulations, businesses must file annual Value Added Tax returns. Companies must pay VAT annually, and in some cases, quarterly payments are permitted. In any case, a company must report any repayments it makes in the course of the year. To avoid penalties and interest, Italian taxpayers must keep their records clean and complete. The filing deadlines are often confusing. To avoid problems, it’s best to seek professional advice when submitting a return.
In November 2021, the deadline for filing taxes was due. However, an extension of sixty days was granted and is now 180 days. Additionally, the filing deadline for tax returns for 2022 is still three to 15 days later, and depends on your personal circumstances.
Refund options for Italy VAT submissions
However, claiming a VAT refund is not as simple as filling out a simple form and submitting it. The Italian VAT system applies a 20% EU Value-Added Tax to all consumer goods and services, excluding meals and accommodation. To get a refund, you must submit your application electronically and within a certain time period.
If you’re leaving the country and are not going to use the Italian VAT return service, you should consider claiming a refund in your final destination within the EU. You can do this by spending two or three days in France before departing Italy. If you’re working on a tight connection, a refund can help you save time.
During your registration, you must select a fiscal representative. This person will be responsible for filing your VAT payments This can be a public act or a private document officially recorded by the office that appoints you. For international bank transfers, you should allow three to four working days. If you’re an established company, you should make your quarterly VAT payments by 1% of the total amount due and make the payment to the tax office in your region. The tax office’s banking codes may differ from region to region, but they’re generally the same.
The deadline for submitting a VAT refund application in Italy is 30 September after the invoice year. For companies outside the EU, you must ensure that your company has a tax reciprocity agreement with Italy. If you’re a US company, you can’t claim a refund if you’re a non-EU company. Therefore, you must ensure that your company has tax reciprocity with Italy to be eligible for VAT reimbursement.
