On 31 July 2019, the Italian Tax Authorities (ITA) issued Regulation No. 660061, providing implementing rules with respect to:
- The electronic interface intermediating in the distance sales made by third-party sellers toward final customers.1
- The electronic interface intermediating in the distance sales made by third-party sellers toward final customers and concerning PCs, mobile phones, game consoles, tablets and laptops having value equal to or lower than EUR 150 — known as the "electronic interface for electronic products."2
More precisely, until 31 December 2020, a taxable person that facilitates, through the use of an electronic interface, distance sales of goods within the European Union (whether such goods are European or are imported from extra-EU territories) must communicate to the ITA the following information for each supplier that has made at least one supply in the relevant quarter:
- The name or personal data, residence or domicile, tax number and email address, as well as the identification number used for distance sales in the electronic platform (if any).
- The total number of units sold in Italy.
- The total amount of sales prices or the average sales price (in Euro) for the units sold in Italy.
The reporting must be done electronically (and in accordance with the terms of a specific annex to the regulation) by the end of the month following each quarter. However, the deadline for the first communication, which concerns the period from 1 May 2019 to 30 September 2019, was 31 October 2019.
In this respect, the same deadline (i.e., 31 October 2019) applies with respect to electronic interface for electronic products from 13 February 2019 to 30 April 2019.
For the purpose of the reporting at issue, please note the following meanings:
- Supplier — Individual or person, tax resident in Italy or abroad, carrying out distance sales.
- Electronic interface (used for facilitating the distance sales) — Marketplace, platform, portal or similar means, tax resident in Italy or abroad.
- Facilitate — Use of an electronic interface allowing suppliers and customers to be in contact and carry out a sale through an electronic interface. For this purpose, an electronic interface is considered as facilitating, directly or indirectly, a sale when:
- it is involved in the determination of the general condition of the sale
- it is involved in the collecting of the customer's payment
- it is involved in the management of orders and deliveries
Conversely, an electronic interface is not considered as facilitating a sale (and therefore no reporting arises) when it only deals with:
- the payment's treatment in relation to the sale of goods
- the cataloguing or advertising of goods
- addressing the customers to other electronic interface
- Distance sales — (i) distance sales of goods sent or carried, directly or indirectly, by the supplier from an EU country (other than the destination EU country) to the customer's destination (so called "distance sales of EU goods") or (ii) distance sales of goods imported, directly or indirectly, by the supplier from third territories or third countries to the customer's destination (so called "distance sales of imported goods").
- Taxable person (subject to the reporting at issue) — Person, tax resident in Italy or abroad, facilitating the distance sales within the EU territory through an electronic interface.
In a nutshell, the communication at issue is required in circumstances where all of the requirements set out above are met. Please note that the ITA has clarified that, where a platform is not registered in Italy for VAT purposes, it is required to either:
- register for VAT purposes through a fiscal representative duly appointed
- register for VAT purposes through the direct VAT registration procedure (available only for taxable persons established in the EU or in third countries with which Italy has a mutual agreement on indirect taxation)
Taxable persons failing to transmit, or only partially transmitting, relevant information will be liable for the amount of VAT due on the relevant distance sales, unless it is demonstrated that the VAT due has been paid by the supplier.
In addition, in cases of incomplete information, taxable persons will not be considered liable for the amount of VAT where they can demonstrate that they have adopted all necessary procedures aimed at identifying and recording all information present on the electronic platforms. Lastly, please note that:
- The reporting at issue may be modified by the end of the month following the deadline (i.e., a supplementary reporting aimed at modifying the first reporting).
- Taxable persons must keep documentation concerning the intermediation in the distance sales at issue for 10 years.