Italy introduced a new VAT development in its 2017 Budget Law
(Law 232/2016), borrowing from the regulations
set forth in Art. 11 of Directive 2006/112/EC. The new
legislation introduces the Title V-bis of Presidential Decree 633/72,
regulating the institution of VAT groups; in essence, a group of
taxable persons can act in the same way as a single person, but
only if certain requirements are met.
The VAT Group is an alternative to, and should not be confused
with, the existing group VAT settlement (see Art. 73, para. 3 of Presidential Decree 633/72); in contrast to the
new legislation, the older group VAT settlement stipulates that
some VAT requirements, including filing returns and payment, may be
met by a parent company instead of individual subsidiaries.
