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country-icon Italie

05.02.23

VAT registration threshold increase

Increasing (or reducing) the VAT threshold is a frequent fiscal procedure deployed by countries and may be triggered by multiple reasons. Increasing the VAT threshold holds some advantages for taxpayers- particularly those companies who, because of the increase, find themselves relieved of multiple VAT obligations.   Italy has proposed to increase its threshold for VAT registration from 65,000 Euros to 85,000 Euros. The European Commission and European Council, whose permission is required to raise the VAT registration threshold, has supported the increase.   This measure must not be underestimated- Italy’s VAT registration threshold is the highest in the European Union to date. It will be effective from 1 January 2023 to 31 December 2024, at which point it will need re-assessment.    

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