News On 17 September, the rate of VAT in Italy was increased by one point, from 20% to 21%.
To determine the VAT rate applicable to service provisions and deliveries of goods, the date of the operation should be borne in mind. Operations carried out prior to the date on which the change took effect are subject to the rate of 20%, while others will be invoiced at the new rate.
It is possible however to apply the 20% rate by bringing the invoice date forward. In this case, the amount of VAT due must be regularised at the time of the next VAT settlement (monthly or quarterly depending in the system), independently of the date of payment by the customer.
Regarding invoices for goods deliveries made in September 2011, issued on or before 15 September, it is sufficient to indicate both VAT rates on the invoice, i.e. 20% for operations carried out up to 16 September and 21% for subsequent operations.
October 10, 2011