Monday, January 21, 2019
The Italian Department of Finance has released new lists of government and private sector entities covered by Italy's split-payment mechanism.
The lists has been included in guidance on the regime, on the "Scissione dei pagamenti" section of the Department's website.
The split payment mechanism is an anti-tax evasion measure that requires government departments to pay the VAT payable under a contract no longer to their supplier but directly to the state. It therefore specifies that public bodies should make invoice payments minus VAT to suppliers, as any tax is paid directly to the state. Newly, from July 1, 2017, the mechanism was extended to companies listed on the FTSE MIB index, and to companies owned or part-owned by the state, those owned directly by local authorities, and their subsidiaries.