Compulsory Invoicing For Extraterritorial Exchanges

1. INTRODUCTION

The national law receiving the EU Directive nr. 2010/45 has extended the obligation of invoicing to exchanges not subject to VAT for lack of the territorial principle. Those exchanges concur to form the annual VAT total revenues. With this tax update we analyse the effects produced by these new rules on extraterritorial (out of the EU) exchanges for national operators.

2. RULES' EVOLUTION

In order to harmonize the way VAT is applied within Countries of the European Union, the Directive 2010/45/EU, enforced in Italy by the Law 228/2012, has introduced new rules for invoices, effective for all exchanges made starting from January 1^st 2013.

Among those, one relevant new rule is the compulsory invoicing of exchanges not subject to VAT for lack or territorial principle.