Italy: Online marketplaces will be liable for VAT due on low-value imports

Italy has recently approved a law making online marketplaces liable for the VAT due on sales below €150 by non-EU sellers. The measure aims mainly to electronic goods such as mobile phones, tables, PCs and laptops, games consoles and video games, etc being imported from non-EU, third countries.

Before this law, non-EU sellers were responsible for VAT reporting under distance selling or import rules in the Member State in which the goods were sold. Now, under the new legislation, online marketplaces will first purchase the goods from the seller (B2B), a nil rated transaction, and then re-sell the goods to the final customer. This last transaction will account for output VAT under the normal Italian rules so marketplaces will then be accountable for charging, collecting and remitting VAT to the Italian tax authorities.

This law does not affect the fact that non-EU business have to appoint a Fiscal Representative in Italy.

More clarification regarding the how and the when of the implementation of this law are expected as well as the reaction from online marketplaces.

 As always we will keep you updated regarding all VAT news from Italy and around the world.

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