Indirect Taxes Rome
VAT, registration tax, mortgage tax and cadastral tax.
In Brief
VAT and indirect tax advice in Rome. Compliance, VAT litigation, registration tax, mortgage and cadastral taxes. The Firm Marzo Associati.
IVA e Tributi Indiretti
Indirect tax legislation is constantly evolving. We provide qualified support to ensure the correct application of national and EU provisions.
Domestic and Foreign VAT:
Management of cross-border transactions, exporters' VAT-free purchase allowances, VAT refunds and direct VAT registration.
Registration Tax:
Advice on the taxation of legal instruments, leases and property transfers.
Successioni e Donazioni:
Optimisation of the tax burden on transfers without consideration.
Dogane e Accise:
Assistance with specific taxes relating to the movement of goods.
VAT and Indirect Tax Advice in Rome: From Compliance to Planning
Indirect taxes — VAT in particular — represent a significant and often underestimated area of tax risk for many businesses. Unlike direct taxes, VAT is subject to penalties proportional to the tax due (70% for inaccurate return violations committed from 1 September 2024, following the revision introduced by D.Lgs. 87/2024; between 90% and 180% for earlier violations) and does not benefit from the same opportunities for voluntary correction (ravvedimento operoso). Correct management from the outset is essential.
VAT: The Complexity of International Transactions
Intra-EU transactions and transactions with non-EU countries are the most complex area of VAT for businesses. The place-of-supply rules for services (B2B vs B2C), the OSS scheme for online sales, the MOSS system, the exceptions for property-related services and transport, and the management of VAT warehouses — each of these aspects requires specialist expertise. Our Firm assists businesses with the correct classification of transactions and the preparation of the required returns.
Registration Tax and Inheritance: Planning Transfers
Property transfers and inheritances require careful planning to minimise the indirect tax burden. The choice between different structures (an outright gift, a family business succession agreement, a contribution to a company or a transfer into a trust) can have very different tax implications. The Firm carries out comparative analyses for each specific situation, also considering the interaction with personal income tax (IRPEF) on future capital gains.
VAT Directive 2006/112/CE and the Italian VAT System
The Italian VAT system is entirely modelled on Direttiva 2006/112/CE (the recast VAT Directive), transposed principally into D.P.R. 633/1972. The rules on the place of supply of services — crucial for correct invoicing in international transactions — distinguish between B2B services (taxed in the customer's country, under the reverse charge mechanism) and B2C services (taxed in the supplier's country, with certain specific exceptions).art. 7-quater D.P.R. 633/1972 governs services relating to immovable property (always taxed where the property is located);art. 7-quinquies governs cultural, artistic, sporting and entertainment services.art. 10 lists exempt transactions (healthcare, educational, financial and insurance services, residential property lettings and authorised gambling).art. 17, c. 6 governs the reverse charge mandatory in the construction and cleaning sectors, for supplies of mobile phones and tablets, and in other sectors at high risk of fraud. For online sales of goods to final consumers in the EU, the scheme OSS (One-Stop-Shop) — introduced to implement the reform directives under the VAT e-commerce package and operational since 1 July 2021 — simplifies compliance by allowing VAT for all EU countries to be declared and paid through a single portal in the country of registration.
Registration, Mortgage and Cadastral Taxes: The Legal Framework for Transfers
Alongside VAT, property transfers are subject to a system of indirect taxes governed by D.P.R. 131/1986 (Testo Unico Registro — TUR) and by D.Lgs. 347/1990 (mortgage and cadastral taxes). For property sales between private individuals subject to registration tax (those not subject to VAT), the standard rates are: 2% for the main residence (prima casa, calcolato sul valore catastale rivalutato); 9% for second homes and non-residential properties. The mortgage registration tax is 2% of the property's value (reduced to 50 euros for first homes qualifying for tax relief), while cadastral tax is charged at1% (similarly reduced). For transfers subject to VAT (where a developer sells within 5 years of construction), the VAT rates are 4% (first home), 10% (second home) and 22% (luxury properties), and registration, mortgage and cadastral taxes are each charged at a fixed amount of 200 euros. Correctly identifying the applicable regime — registration tax or VAT — is a preliminary step in any property transaction and requires an analysis of the seller's status and the property's characteristics.
VAT Litigation: How to Challenge a VAT Adjustment Notice
VAT adjustment notices are among the most frequent tax assessment measures and can be devastating for businesses: the standard penalties for inaccurate returns are 70% of the tax for infringements committed from 1 September 2024 (D.Lgs. 87/2024), while earlier infringements attract penalties ranging from 90% to 180%, with increases in cases involving fictitious transactions. Defence requires a multi-faceted strategy: analysing the correct classification of the disputed transactions, checking the grounds for the assessment and gathering supporting evidence (contracts, orders, proof of payment and business correspondence). Our Firm assists businesses from the point at which they receive a questionnaire or inspectors visit their premises, when it is still possible to influence the course of the investigation. Timely intervention at the pre-litigation stage, through a tax settlement procedure (accertamento con adesione) or a self-correction request (autotutela), allows the scope for reducing penalties and interest to be assessed.
Based in Rome — Advice for Businesses and Individuals
Based in the quartiere Salario, Roma, the Firm assists both businesses facing VAT complexities in their day-to-day operations and individuals undertaking exceptional transactions (property sales and purchases, inheritances and gifts). Remote consultations are also available for clients throughout Italy.
Domande Frequenti — Indirect Taxes
When does the VAT reverse charge apply and how does it work?
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The reverse charge is a mechanism that shifts the obligation to account for VAT from the supplier of goods or services to the purchaser or customer. In Italy, it is mandatory in various situations: property sales by developers, cleaning/demolition/installation services, supplies of mobile phones and tablets, and services provided by non-residents. The purchaser records the transaction as both output and input VAT, with a neutral effect if entitled to full deduction. Errors in applying the reverse charge can result in penalties of up to 15% of the VAT. The Firm assists in checking the conditions for its application and handling uncertain cases.
How does the VAT purchasing allowance work for regular exporters?
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A regular exporter is a person or entity whose exports and equivalent transactions in the previous calendar year (or the preceding 12 months) exceeded 10% of turnover. These persons or entities may purchase goods and services without paying VAT, within the available purchasing allowance (equal to the amount of VAT-exempt transactions with the right to deduct input VAT in the previous year). The system requires proper maintenance of the purchasing allowance register and the issue of declarations of intent to suppliers. Management errors result in improper use of the allowance, with penalties ranging from 100% to 200%. The Firm checks that the allowance has been correctly calculated and provides assistance in the event of a challenge.
What taxes apply to a property sale between private individuals?
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Taxation depends on the type of property and the seller. For the sale of a main residence between private individuals: registration tax at 2% (or 9% for a second home), plus fixed mortgage and cadastral taxes of 50 euros each. If the seller is a developer selling within 5 years of construction: VAT at 4% (first home), 10% (second home) or 22% (luxury properties), plus fixed taxes. Property capital gains are subject to personal income tax (IRPEF) if the sale takes place within 5 years of purchase (with exceptions for the main residence and inherited properties). The Firm carries out a preliminary analysis to identify the applicable tax regime and optimise the tax cost of the transaction.
How can an Italian business recover VAT paid abroad?
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An Italian business that has incurred expenses subject to VAT in other EU countries may claim a refund of foreign VAT through the electronic procedure on the Italian Revenue Agency (Agenzia delle Entrate) portal (Direttiva 2008/9/CE), by 30 September of the following year. For non-EU countries, procedures vary from country to country and may require reciprocity conditions to be met. Refunds are subject to verification and may take months or years. The Firm assists businesses in identifying refundable expenses, preparing applications and following up with foreign tax authorities.
Specialist Professionals
Indirect Taxes — Where We Operate
Our Firm provides services in indirect tax from our office in Rome to clients throughout Italy. We also assist businesses and individuals in Milan, Naples, Florence, Turin, Bologna and the main cities in Lazio.
Do you need assistance?
Our team is available for a tailored consultation.