Investment in Italy

Investment in Italy• the supplier’s VAT number• the customer’s VAT number (always on intra-EU supplies when the customer is a taxableperson). If VAT on a transaction will be accounted for by the customer and not thesupplier because the reverse charge mechanism applies, then the invoice must explainthe basis of the transaction or include a reference to the relevant provision of the ItalianVAT law• the supplier’s name and address• the customer’s name and address• the address of the permanent establishment• the quantity, quality and nature of the goods/services supplied• the taxable amount split by applicable rate• unit price (exclusive of any VAT)• the market value of the goods sold at a discount, whether or not this value is included inthe calculation of the taxable amount• the VAT rate• the amount of VAT payable in euro (if VAT is not due, the provision of Italian law allowingthis must be quoted)• an indication of the person who issued the invoice (in case of self-billing).Electronic invoices are allowed, provided that the customer’s prior agreement is obtained andthat Electronic Data Interchange (EDI) or an advanced digital signature is used to guaranteethe authenticity of the invoice’s origin and content.Electronic invoicing is compulsory for supplies to public authorities and administrations.Self-billing is allowed. However, the supplier remains responsible for the issue of the invoice.Furthermore, if the issuer is resident in a ‘black-list’ state the supplier (who must have beenin business for at least five years and must not have undergone a VAT assessment by thetax authorities in the preceding five years) must notify the tax authorities of the arrangementbeforehand.8.9Transfers of businessIf a business is sold as a going concern then VAT is not due. The transaction is subjectto registration tax. Certain conditions must be satisfied: for example, the purchaser mustintend to use the assets to carry on the same kind of business carried on by the seller.8.10Opting for VATItalian VAT law grants a general exemption for real estate transactions, with certainexceptions. However, in the case of industrial real estate it is possible to opt - in the transferdeed - for the taxation of the transaction. In the same way, it is possible to opt for thetaxation, on a unit-by-unit basis, of leased industrial real estate. Again, this form of taxationmust be opted for in the leasing agreement.© 2012 KPMG S.p.A., KPMG Advisory S.p.A., KPMG Fides Servizi di Amministrazione S.p.A., KPMG Audit S.p.A., Italian limited liability share capital companies, and Studio Associato Consulenza legale e tributaria, anItalian professional partnership, are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.81