Joint-stock companies (S.p.A.) and limited liability companies (S.r.l.), or permanent establishments in Italy of a nonresident company, are subject to the following indirect taxes in addition to income taxes.
VAT (Value Added Tax)
The system o f VAT operation is the same as that provided throughout t h e European Union by Directive No. 2006/112.
The ordinary tax rate is 22%. Reduced rates of 4%, 5% and 10% apply to basic necessities. Businesses must calculate their VAT debt or credit on a monthly basis. If there is a debit balance, payment must be made by the 16th of the following month. If certain conditions are met, VAT can be calculated and paid on a quarterly basis (less than 500,000 euros in annual revenue). The annual VAT return must be completed by the end of February.
In some sectors considered to be at risk, the reverse charge mechanism is applicable, as an exception to the general principle, the taxable person to whom the supply is made is designated as the person liable for VAT.
Registration and stamping
All written deeds and documents having legal effect executed in Italy must be registered with the Registry Office within 20 days from the date of execution. In addition, certain oral agreements specified in the registration tax law must be registered.
Almost all legal documents must be prepared on stamped paper with the application of are venue stamp, which can be purchased from authorized dealers or virtual (prepaid). If a legal document is drawn up abroad it must be on a stamp or it can be drawn up on plain paper and subsequently printed in Italy at a public office upon payment of the stamp.
IMU (Single Municipal Tax)
The tax base is the cadastral value of the property. In cases where the cadastral value has not been determined by the tax office, the taxpayer must determine the cadastral value of the building on his own based on certain parameters. For industrial buildings without cadastral value, the tax base is the historical cost of real estate revalued by certain parameters set according to cost. The tax rate is set in a range from 0.76 percent to 1.06 percent of the tax base.
Buildings used for business activity are subject to the rate of 0.76%. This rate is reducible by the municipality.