Italy Tax Agency Issues Circular Clarifying New Cross-Border VAT Exemption Regime

The Italian Revenue Agency Dec. 16 issued Circular No. 13/E, clarifying the new cross-border VAT exemption regime under Legislative Decree No. 180/2024. The circular clarifies that: 1) small businesses with annual EU turnover up to 100,000 euros (US$117,238), and within the national threshold of 85,000 euros (US$99,652) for Italy, can opt for the cross-border VAT exemption; 2) the regime applies to outgoing transactions in other EU countries, including for sales of goods and services, and terminates if thresholds are exceeded or if a business opts out, resulting in the reversion to ordinary VAT rules; 3) the regime aligns with Italy’s ...