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Council Decision Published Authorizing Continued Application of Italy's VAT Split-Payment System — Orbitax Tax News & Alerts

A Council Implementing Decision was published in the Official Journal of the EU on 24 July 2020 that authorizes Italy to continue the application of its VAT split-payment system. Under the split-payment system, supplies of goods and services to specified recipients are subject to VAT at normal rates, but the payment is split, with the taxable amount paid to the supplier and the VAT due paid directly to a blocked VAT bank account. The decision extends the prior authorization end date from 30 June 2020 to 30 June 2023 and applies retroactively from 1 July 2020.