Italy’s government has gazetted the Legislative decree No. 180/2024 in the Official Journal No. 281, on 30 November 2024, which implements the provisions of the Amending Directive to the VAT Directive (2020/285) and the Amending Directive to the VAT Directive (2022/542) into domestic law.
The Amending Directive to the VAT Directive (2020/285) expands the special VAT scheme for small enterprises. Previously limited to domestic operations, this scheme now includes small businesses engaged in cross-border transactions within the European Union.
According to the Amending Directive to the VAT Directive (2022/542), virtual cultural, artistic, and sporting events are considered to occur in Italy if the customer resides or is domiciled there.
Under the transposing decree, VAT taxable persons established in other EU Member States can access the special scheme in Italy, provided they meet the following annual turnover thresholds:
- EUR 100,000 across all other EU Member States for both the current and previous calendar years;
- EUR 85,000 within Italy in the last calendar year.
The Decree will come into force starting 1 January 2025.
Earlier, Italy’s Council of Ministers passed the Legislative Decree implementing the Amending Directive to the VAT Directive (2020/285) and the Amending Directive To The VAT Directive (2022/542) on 29 October 2024.
