As of 1 January 2017 amendments to the existing VAT group settlement regime (former Italian VAT group) have been introduced. In particular:

  • The regime has been extended also to partnerships.
  • The requirement relating to the time of the control has been modified. In particular the control requirement shall no longer be met at the beginning of the year prior to that in which the option is exercised but on 1 July of previous the calendar year.
  • The fulfillments of the obligation arising from the option for the VAT group settlement regime have been simplified.
  • The option for the VAT Group settlement regime shall be exercised directly in the annual VAT return relating to the fiscal year during which the group starts to take advantage of such regime.

The VAT Group settlement regime is a special way to pay VAT by companies belonging to the same group, which are entitled to offset their respective VAT credits and liabilities; as such, the VAT Group settlement regime will be available also after the implementation of the VAT Unit rules, as an alternative to the latter.