VAT Group: the Italian Tax Authority clarifies the application of Italian VAT Grouping rules with ruling n. 222/2019
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VAT Group: the Italian Tax Authority clarifies the application of Italian VAT Grouping rules with ruling n. 222/2019
On July 1st, 2019 the Italian Tax Authority issued clarification in the ruling n. 222/2019 concerning the application of VAT Grouping legislation as per Presidential Decree no. 633/1972, DM 6 April 2019 and Circular letter no. 19/E/2018.
The VAT grouping is treated as a single taxable person, liable for all the VAT obligations and able to exercise all the rights pertaining to its participants; as a consequence, it has a sole VAT identification number, periodically determines (as a group) its VAT position, files the VAT returns and pays any VAT due to the Tax Authorities (or asks for a VAT refund).
The supplies of goods and the services rendered among the participants of a VAT group are outside the scope of VAT, while transactions carried out between a group member and a third party will be treated as being made by the group as an entity.
In this case the Company group applied the Vat Group regime from 1st January 2019 and as a consequence the group itself will be considered as a single Vat taxable subject.
The application of the said principle is not retroactive (ie, it is only effective on transactions performed from 1 January 2019).