Italy - Cross-Border VAT Groupings: The Effects of the New Italian Regulation
- G. Melis; L. Giancola
- European Taxation, 2018 (Volume 58), No 8
- 2 July 2018
Italian Law No. 232/2016 provides for VAT groupings in accordance with article 11 of the VAT Directive (2006/112). In considering a group of companies as a single taxpayer for VAT purposes and by excluding intra-group services from VAT, the reform guarantees the effective neutrality of the VAT system, especially for groups with activities that are wholly or primarily exempted from VAT. As a result, the new provision on VAT grouping has increased the competitiveness of such companies.