Italy Clarifies Application of Reverse Charge for Cross-Border B2B Supplies

The Italian Revenue Agency (IRA) has published Ruling No. 549 of 19 August 2021, which clarifies the application of the reverse charge mechanism for VAT on cross-border B2B supplies. The ruling is in response to a request by a Slovak company, registered for VAT in Italy, that supplies services to an Italian company involving the restoration and maintenance of an internal railway located in Italy. Given that the company is registered for VAT in Italy, it was proposed that it should issue an i…