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22-05-2020 - COVID-19: Further measures and postponements for VAT purposes (Law Decree 34/2020)

Italy has implemented additional measures for VAT purposes (Law Decree 34/2020):
•    VAT payments terms have been furtherly postponed and more precisely
  . terms due from March 9th to March 31st have been postponed to September 16th, for taxpayers mostly affected by the crisis (e.g. taxpayers being involved in specific business sectors, taxpayers having in the former FY a turnover not exceeding EUR 2 million, taxpayers being established in selected geographical areas);
  . terms due in April and May have been postponed to September 16th, for taxpayers that recorded a turnover reduction due to the crisis (-33% or -50%, depending on the size of taxpayers or the related geographical location) or that had started the business activity after March 31st, 2019.
•    For anti-COVID 19 devices (e.g. face masks, hands disinfectants, latex gloves and the like, ventilators and others) until 31 December 2020 it will apply the VAT exemption (ensuring the deduction of input VAT) and from January 1st, 2021 it will apply the reduced 5% VAT rate.
•    For tax assessment terms expiring in the period from March 9th to December 31st, 2020, the related tax assessment notice (and similar) is notified not before January 1st, 2021 and by December 31st, 2021.
•    The annual maximum amount for tax compensation (including VAT) has been raised, for the year 2020 only, from EUR 700k to EUR 1 million.
•    The safeguard clauses that provided for the increase in VAT rates in the coming years (except the revenue would be granted by other measures) have been eliminated
•    It has been postponed to January 1st, 2021 the term starting from which the Italian Tax Authorities will make available to all VAT taxable persons resident and established in Italy the drafts of (i) VAT registers, (ii) periodic VAT settlements, (iii) annual VAT return.
•    It has been postponed to January 1st, 2021 the implementation of the automated recalculation of the stamp duty on electronic invoices sent via SDI
No changes have been implemented with regard to tax fulfillments (different from tax payments); VAT fulfillments that normally were be due in the period from March 8th to May 31st must be handled by June 30th, 2020.


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