The Italian Ministry of Finance announced that the country’s VAT thresholds, which determine how frequently VAT must be paid, have been raised. In Italy, the tax is known as the IVA – Imposta sul valore aggiunto. The following thresholds were affected:
- The turnover threshold for supplies of services has been raised from EUR 400,000 to EUR 500,000.
- The turnover threshold for supplies of goods has been raised from EUR 700,000 to EUR 800,000.
In Italy, the standard VAT return period is quarterly. On the other hand, the VAT payment frequency differs: VAT can be paid monthly or quarterly, with monthly being the preferred option because quarterly payments include a 1% interest fee on top of the collected VAT.
Effective date: January 2023