2023 Budget Law – New provisions in the VAT, excise duties and consumption tax field

Law No. 197/2022 concerning the “Budget of the State for the financial year 2023 and multiannual budget for the period 2023-2025” (“Budget Law”) was approved on 29 December 2022. In this document we briefly analyze the most significant changes introduced with regard to VAT, excise duties and certain consumption taxes (so called “Plastic tax” and “Sugar tax”).

Clarifications about the application of the IOSS regime for e-commerce platforms operating through the “dropshipping” scheme

With the Response to the Ruling no. 77, published on January 18, 2023, the Italian Tax Authorities provided clarifications regarding the application of the IOSS regime (“import one stop shop”) to the supplies of goods carried out through the “dropshipping” commercial scheme, with reference to the identification of the deemed supplier in said transactions and to the determination of the intrinsic value when the importation takes place.

Recovery of VAT paid to regularize indirect exports

With the reply to ruling no. 32/2023 of January 13, 2023, the Italian tax authorities provided additional clarifications on the recovery of VAT charged in case of regularization of indirect exports referred to in Article 8, paragraph 1, letter b), of Presidential Decree no. 633/1972, updating the clarifications previously provided with Resolution no. 98/E of 2014, in the light of the regulatory changes on methods and timing within which exercise the right to deduct VAT introduced by Law Decree no. 50 of April 24, 2017, converted, with amendments, by Law no. 96 of June 21, 2017.

News on electronic invoicing and VAT compliance obligations proposed by the European Commission in the context of the new “VAT In the Digital Age package (VIDA)”

On December 8, 2022, the European Commission published the action plan “VAT In the Digital Age package (VIDA)” that requires Member States to review the effectiveness of the current VAT rules against the developments that will be (or have already been) brought by the digital age.

Signed the extraordinary protocol for the tertiary, distribution, and services sector: granting of one-off payment and contractual increases

On 12nd December 2022, the employers' association Confcommercio signed - in agreement with the trade unions Filcams Cgil, Fisascat Cisl and Ulitucs - an extraordinary sector protocol that aims, on the one hand, to mitigate the effects of the increase in inflation and the cost of living in general, and, on the other hand, to resume negotiations for the renewal of the Tertiary, Distribution and Services NCLA, which expired on 31st December 2019.