- New VAT franchise regime for SMEs beyond territorial borders from 2025
- Draft legislative decree introduces simplified VAT compliance for SMEs crossing EU borders
- Scheme based on EU Directive 2020/285, effective from January 1, 2025
- Allows SMEs to cross national borders with simplified VAT compliance
- Recipient of EU Directive 2020/285 on VAT
- Introduces new articles in D.P.R. n. 633/1972 for cross-border franchise regime
- Two scenarios: franchise regime in Italy for EU entities, and vice versa
- Conditions for admission to the regime include annual turnover limits
- Suspension of local VAT registration if admitted to the regime
- Communication of intention to use the franchise regime to home country required
Source: ipsoa.it
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
