14 September 2021
The Italian Revenue Agency (IRA) has published Ruling No. 549 of 19 August 2021, which clarifies the application of the reverse charge mechanism for VAT on cross-border B2B supplies. The ruling is in response to a request by a Slovak company, registered for VAT in Italy, that supplies services to an Italian company involving the restoration and maintenance of an internal railway located in Italy. Given that the company is registered for VAT in Italy, it was proposed that it should issue an invoice for the service using its Italian VAT number, with the application of VAT at the rate of 22%. However, the ruling clarifies that regardless of the Slovak company's VAT registration in Italy, the Italian company as the recipient of services supplied in Italy must account for the VAT due through the reverse charge mechanism. As such, The Slovak company is required to issue the invoice using its Slovak VAT number without the charge of VAT.
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