Italy announces online marketplaces VAT fraud obligations

8 March 2019

Italy has announced plans to make online marketplaces responsible for the VAT on sales of electronic goods under a value of €150, made by non-EU sellers.  If implemented this will apply to sales of mobile phones, video games, tablets and games consoles for example.

Under these new rules, it will mean that the online marketplaces will have to first acquire the goods from the non-EU seller and then undertake the local sale to the consumers themselves.  The marketplace will then be responsible for charging, collecting and remitting VAT to the Italian tax authorities on the transaction.

This measure is designed to help to prevent online VAT fraud and mirrors the proposal by the European Commission to make online marketplaces liable to all VAT on sales of goods through their platforms by 2021, please click here for further detail.

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