Currently, there is only an administrative simplification for VAT groups in Italy. Group members can net off their VAT credits and debits into one consolidated annual VAT return. However, intra-group transactions are subject to VAT and each member maintains an individual VAT number.
The Italian government announced plans to introduce VAT group simplifications as part of the 2017 Budget law. According to the announcement, Italy would disregard VAT on intra-group transactions and consolidate all VAT numbers into one single registration. The authorities still need to clarify several details on this VAT group proposal.
Please contact us if you want to receive the latest information about applicable VAT group rules in Italy.