VAT Systems News September  2015

Split Payment VAT system retroactively approved

The Italian decree that introduced a system for splitting the payment of value added tax by public bodies (whereby, among others, suppliers issue invoices to public bodies without tax, as VAT is paid directly to the Italian treasury) has been retrospectively approved by the European Union Council, with effect from 1 January 2015, as a suitable anti-fraud measure. The time limit for application of the split payment VAT system is 31/12/2017 when the Italian government expects to have the e-invoicing for public sector fully implemented.