Italy’s Council of Ministers has preliminarily approved a draft Legislative Decree for the implementation of the Amending Directive to the VAT Directive (2020/285) and the Amending Directive To The VAT Directive (2022/542).
This decree regulates the cross-border VAT exemption regime applicable to small businesses operating in Italy but with headquarters in another European Union country, and to small businesses operating in Italy and other EU countries.
The regime does not apply to the sale of means of transport. The exemption regime applies to entities whose annual turnover does not exceed EUR 100,000 within the EU and the annual turnover limit established by the country in which the application of the regime is requested (set, for Italy, at EUR 85,000).
The amending directive to the VAT directive (2022/542) brings specific changes to the regulations on VAT rates and sets new guidelines regarding the place of supply for online events.
The proposed Legislative Decree will be submitted to Parliament for consultation prior to its final approval.
