Back in May 2019, the Italian government issued a Decree stating that marketplaces would need to report information related to their sellers activities under certain conditions, if failed to provide such information they would become liable for unpaid VAT1. The first deadline was set to 31 Juyly and then postponed to 31 October 2019. As the deadline approaches, it is important for those it effects to understand the implications and necessary steps to follow.
The deadline applies for all remote sales of any type of goods, irrespective of their unit value. To clarify, this includes sales made in the second and third quarters of 2019.
This applies to the remote sales of electronic goods such as mobile phones, video game consoles and laptops, it also extends to the remote sales of imported electronic goods not exceeding €160 made in the period of 13 February 2019 to 30 April 2019.
Going forward the reports will be due on a quarterly basis by the end of the month following the quarter in which the sales were made.
A non-resident taxable person in Italy (not having a fixed establishment) must register for Italian value added tax (VAT) purposes (either by direct VAT registration or by the appointment of a fiscal representative).
Noncompliance with these measures can result in the taxable person being liable itself for the VAT.2
If you believe these developments impact your business and would like further advice on your next steps you can always contact us.