Italy VAT rise looking unlikely

Italy VAT rise looking unlikely

Having already increased the VAT rate to 22% in 2013 Italy was facing another VAT increase to 24% in 2016, with an even further potential increase to 26.5% in 2018. This increase was proposed as the Italian total debt has continued to rise in recent years, and was looking to rise to 130% of GDP in 2015. Italy failed to reduce spending enough so as to reduce its deficit as a percentage of GDP to below 3%, which is a basic requirement for membership of the Euro currency.

However, the European Commission has now indicated that it will not enact any sanctions or penalties on Italy if it fails to meet its targets, having already done similar for Belgium, meaning that Italy would not have to enact the proposed VAT increases, especially if its meets its new forecasted growth rate of 1.4%, up from 1%, which would therefore bring its deficit GDP rate to just below 3%.

For further information please see  previous eBiz posts:

Italian Vat Rumours and Russian Sales Tax

Laura Stockley
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Laura Stockley

Consultant at eBiz Answers Ltd
Laura graduated from University with a degree in Business Studies, and has been working as an Oracle eBTax consultant for several years now, with both R12 eBTax and Fusion (Oracle Cloud) Tax. Focussing primarily on the tax module and its components, Laura also works on the other financial modules and understands how they integrate with the tax engine. Laura has worked on projects with multiple clients covering all aspects of the tax module including AP, AR and GL, working on everything from design, configuration, testing to support. An excellent communicator, Laura enjoys interacting with end users and relishes the challenge of resolving their issues; making tax an enjoyable experience, always.
Laura Stockley
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