Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 11/15/2012

Italy - VAT rate-change update; asset-management services subject to VAT 

November 14:   A recently proposed supplement to the draft of Stability Law (Semplicemente Disegno di Legge, della Legge di Stabilita' per l'anno 2013) would affect Italy’s value added tax (VAT), as follows:

  • The standard VAT rate—as previously planned—would increase to 22% (from 21%) effective 1 July 2013.
  • The reduced VAT rate of 10% and the super-reduced VAT rate of 4%, however, would not change.

VAT on asset-management services

An amendment to the Italian law provisions concerning banking services (and related exemptions) proposes to impose VAT on services provided by securities-based asset management entities beginning 1 January 2013.


The amendment would be intended to transpose a judicial holding of the Court of Justice of the European Union in Deutsche Bank, C-44/11 (see TaxNewsFlash-Europe: Germany - Review of recent VAT-related decisions of CJEU)


To minimize the effects of such entities not being able to recover input VAT, the rules would allow taxpayers to establish separate sets of VAT accounts, so that input VAT incurred in providing taxable management services could be recoverable.



For more information, contact a tax professional with KPMG in Italy:


Eugenio Graziani

+39 045 811 4321





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