Investment in Italy

Investment in Italyactivity;- the vehicle is used as a taxi- the vehicle is used for instruction by a driving school- the vehicle is hired or leased out- the vehicle is used by sales representatives• Business entertainment: VAT is generally not recoverable on business entertainmentcosts• Tour operators’ margin scheme: VAT cannot be reclaimed for goods and serviceswhich fall under this scheme• Goods sold under one of the margin schemes for second-hand goods. There are anumber of schemes whereby VAT is accounted for on the sales margin of the goods butcannot be recovered on the purchase of those goods.8.7International supplies of goods and services8.7.1ExportGoodsIf a seller in Italy sells goods to a customer who is registered for VAT in another EU MemberState and the sale involves the removal of those goods from Italy (by the seller or thecustomer) to that Member State, then the seller does not charge VAT and zero-rates thesupply as an intra-EU dispatch. The seller must obtain the customer’s VAT number in theother EU Member State and quote it on the invoice. The seller should also obtain evidenceof the removal of the goods from Italy. If goods are sold to a customer who is not registeredfor VAT in another EU Member State, the seller will have to charge Italian VAT.If the seller exports goods to a customer (business or private) outside the EU, then it doesnot charge VAT; however, as for intra-Community sales, the seller should make sure that inall cases it keeps proof of dispatch/delivery to support its zero rating.ServicesIf a supplier established in Italy supplies services to a business customer established inanother EU Member State, he makes - under the new ‘VAT Package’ rules - a supply whichis outside the scope of Italian VAT. In order for the supplier not to charge VAT, the VATnumber issued to the customer in the other EU Member State must be obtained and quotedon the invoice.The following services are subject to different ‘place of supply’ rules:• services connected with immovable property• passenger transport• restaurant and catering services• hiring or leasing of means of transport• cultural, artistic, sporting, scientific, educational, entertainment, or similar activities,© 2012 KPMG S.p.A., KPMG Advisory S.p.A., KPMG Fides Servizi di Amministrazione S.p.A., KPMG Audit S.p.A., Italian limited liability share capital companies, and Studio Associato Consulenza legale e tributaria, anItalian professional partnership, are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.79