Italy VAT Return Skill (LIPE / Liquidazione IVA Periodica) v2.0

Section 1 — Quick reference

Read this whole section before classifying anything. The workflow runbook is in vat-workflow-base Section 1 — follow that runbook with this skill providing the country-specific content and eu-vat-directive providing the EU directive content.

Field	Value
Country	Italy (Repubblica Italiana)
Standard rate	22%
Reduced rates	10% (tourism, restaurants, renovation, certain foodstuffs), 5% (certain health/social services, selected food items), 4% (basic foodstuffs, printed books, first-home construction)
Zero rate	0% (exports, intra-EU B2B supplies of goods)
Return form	LIPE (Comunicazione Liquidazioni Periodiche IVA, quarterly communication); annual Dichiarazione IVA
Filing portal	https://www.agenziaentrate.gov.it (Fatture e Corrispettivi / Fisconline)
Authority	Agenzia delle Entrate
Currency	EUR only
Filing frequencies	Monthly (turnover > €800,000 services / €800,000 goods in prior year); Quarterly (below thresholds, with 1% interest surcharge); Annual (Dichiarazione IVA by 30 April)
Deadline	LIPE: last day of 2nd month after quarter end (Q1 by 31 May, Q2 by 16 Sept, Q3 by 30 Nov, Q4 by 28 Feb); monthly: 16th of following month for payment
Companion skill (Tier 1, workflow)	vat-workflow-base v0.1 or later — MUST be loaded
Companion skill (Tier 2, EU directive)	eu-vat-directive v0.1 or later — MUST be loaded
Contributor	Open Accountants contributors
Validation date	April 2026

Key LIPE fields (VP section — the fields you will use most):

Field	Meaning
VP2	Total taxable transactions (imponibile)
VP3	Total intra-EU acquisitions (imponibile)
VP4	Total output VAT (IVA a debito)
VP5	Total input VAT (IVA a credito)
VP6	VAT payable or credit for the period
VP7	Credit from prior period
VP8	Credit from annual declaration used
VP9	Advance payment (acconto) used
VP10	Intra-EU purchases (acquisti intracomunitari)
VP11	Imports (importazioni)
VP12	Reverse charge purchases (acquisti con inversione contabile)
VP14	Net amount due or credit

Registri IVA (VAT registers) — the backbone of Italian VAT:

Register	Purpose
Registro delle fatture emesse	Sales invoices issued
Registro degli acquisti	Purchase invoices received
Registro dei corrispettivi	Daily receipts (retail/hospitality)

Conservative defaults — Italy-specific values for the universal categories in vat-workflow-base Section 2:

Ambiguity	Default
Unknown rate on a sale	22%
Unknown VAT status of a purchase	Not deductible
Unknown counterparty country	Domestic Italy
Unknown B2B vs B2C status for EU customer	B2C, charge 22%
Unknown business-use proportion (vehicle, phone, home office)	0% recovery
Unknown SaaS billing entity	Reverse charge from non-EU (Art. 17 c.2 DPR 633/72)
Unknown blocked-input status (entertainment, personal use)	Blocked
Unknown whether transaction is in scope	In scope

Red flag thresholds — country slot values for the reviewer brief in vat-workflow-base Section 3:

Threshold	Value
HIGH single-transaction size	€5,000
HIGH tax-delta on a single conservative default	€400
MEDIUM counterparty concentration	>40% of output OR input
MEDIUM conservative-default count	>4 across the return
LOW absolute net VAT position	€10,000

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Section 2 — Required inputs and refusal catalogue

Required inputs

Minimum viable — bank statement for the period in CSV, PDF, or pasted text. Must cover the full period. Acceptable from any Italian or international business bank: UniCredit, Intesa Sanpaolo, Banco BPM, Monte dei Paschi di Siena, BPER Banca, Poste Italiane (BancoPosta), Revolut Business, Wise Business, N26 Business, or any other.

Recommended — electronic invoices (fatture elettroniche) for the period from SDI (Sistema di Interscambio), purchase invoices for any input VAT claim above €400, the client's Partita IVA in writing (IT + 11 digits).

Ideal — complete SDI extract (XML), prior period LIPE, Registri IVA (fatture emesse + acquisti), reconciliation of VP7 credit brought forward.

Refusal policy if minimum is missing — SOFT WARN. If no bank statement is available at all → hard stop. If bank statement only without invoices → proceed but record in the reviewer brief: "This LIPE was produced from bank statement alone. The reviewer must verify, before approval, that input VAT claims above €400 are supported by compliant fatture elettroniche received via SDI and that all reverse-charge classifications match the supplier's invoice."

Italy-specific refusal catalogue

These refusals apply on top of the EU-wide refusals in eu-vat-directive Section 13 (R-EU-1 through R-EU-12). If any trigger fires, stop, output the refusal message verbatim, end the conversation.

R-IT-1 — Regime forfettario. Trigger: client is under the regime forfettario (flat-rate scheme, turnover below €85,000). Message: "Regime forfettario taxpayers do not charge IVA on their invoices and cannot recover input IVA. They do not file LIPE or the annual Dichiarazione IVA. This skill covers the regime ordinario only."

R-IT-2 — Regime dei minimi. Trigger: client is under the legacy regime dei minimi (contribuenti minimi). Message: "Regime dei minimi taxpayers have a simplified regime outside the ordinary IVA system. This skill covers the regime ordinario only."

R-IT-3 — Split payment (scissione dei pagamenti). Trigger: client's customers include Italian public administration bodies subject to split payment under Art. 17-ter DPR 633/72. Message: "Split payment (scissione dei pagamenti) for supplies to public administration requires specific treatment where the PA withholds IVA. This is complex and out of scope."

R-IT-4 — Partial exemption (pro rata). Trigger: client makes both taxable and exempt-without-credit supplies (financial, medical, educational) and the exempt proportion is not de minimis. Message: "You make both taxable and exempt supplies. Input IVA must be apportioned under the pro rata rule (Art. 19 and 19-bis DPR 633/72). Please use a commercialista to determine the pro rata."

R-IT-5 — Margin scheme (regime del margine). Trigger: client deals in second-hand goods, art, antiques, or collectables. Message: "Margin scheme transactions require transaction-level margin computation. Out of scope."

R-IT-6 — VAT group (gruppo IVA). Trigger: client is part of a VAT group under Art. 70-bis to 70-duodecies DPR 633/72. Message: "VAT groups require consolidation across the group. Out of scope."

R-IT-7 — Fiscal representative (rappresentante fiscale). Trigger: non-resident supplier or client with a fiscal representative in Italy. Message: "Non-resident registrations with fiscal representatives have specific obligations beyond this skill. Please use a commercialista."

R-IT-8 — Income tax instead of IVA. Trigger: user asks about annual income tax (IRPEF, IRES, Modello Redditi) instead of IVA. Message: "This skill only handles Italian VAT (IVA) returns. For income tax, use a dedicated Italian income tax skill."

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Section 3 — Supplier pattern library (the lookup table)

This is the deterministic pre-classifier. When a transaction's counterparty matches a pattern in this table, apply the treatment from the table directly. Do not second-guess. Do not consult Tier 1 rules — the table is authoritative for patterns it covers.

How to read this table. Match by case-insensitive substring on the counterparty name as it appears in the bank statement. If multiple patterns match, use the most specific. If none match, fall through to Tier 1 rules in Section 5.

3.1 Italian banks (fees exempt — exclude)

Pattern	Treatment	Notes
UNICREDIT, UNICREDIT SPA	EXCLUDE for bank charges/fees	Financial service, exempt (Art. 10 c.1 n.1 DPR 633/72)
INTESA SANPAOLO, INTESA SP	EXCLUDE for bank charges/fees	Same
BANCO BPM, BPM	EXCLUDE for bank charges/fees	Same
MONTE DEI PASCHI, MPS	EXCLUDE for bank charges/fees	Same
BPER BANCA	EXCLUDE for bank charges/fees	Same
POSTE ITALIANE, BANCOPOSTA	EXCLUDE for bank charges/fees	Same
CREDITO EMILIANO, CREDEM	EXCLUDE for bank charges/fees	Same
REVOLUT, WISE, N26 (fee lines)	EXCLUDE for transaction/maintenance fees	Check for separate taxable subscription invoices
INTERESSI, INTERESSE	EXCLUDE	Interest income/expense, out of scope
MUTUO, PRESTITO, FINANZIAMENTO	EXCLUDE	Loan principal movement, out of scope

3.2 Italian government, regulators, and statutory bodies (exclude entirely)

Pattern	Treatment	Notes
AGENZIA ENTRATE, AGENZIA DELLE ENTRATE	EXCLUDE	Tax payment, not a supply
F24, MODELLO F24, PAGAMENTO F24	EXCLUDE	Tax payment (IVA, IRPEF, INPS, IRAP) via F24
INPS	EXCLUDE	Social security contributions (contributi previdenziali)
INAIL	EXCLUDE	Workplace insurance contributions
CAMERA DI COMMERCIO, CCIAA	EXCLUDE	Chamber of Commerce fees, government body
COMUNE DI, MUNICIPIO	EXCLUDE	Municipal fees/taxes
REGIONE, PROVINCIA	EXCLUDE	Regional/provincial government
EQUITALIA, AGENZIA RISCOSSIONE	EXCLUDE	Tax collection agency
DOGANA, AGENZIA DOGANE	EXCLUDE	Customs (but check for import IVA on C88 equivalent)

3.3 Italian utilities

Pattern	Treatment	Field	Notes
ENEL, ENEL ENERGIA, ENEL SERVIZIO	Domestic 22%	VP5 (input)	Electricity — standard rate overhead
ENI, ENI PLENITUDE	Domestic 22% or 10%	VP5 (input)	Gas: check invoice — domestic gas may be 10% (reduced) or 22%
EDISON, A2A, IREN, HERA	Domestic 22%	VP5 (input)	Utilities
ACEA	Domestic 22% or 10%	VP5 (input)	Water/electricity — water may be 10%
TIM, TELECOM ITALIA	Domestic 22%	VP5 (input)	Telecoms — overhead
VODAFONE IT, VODAFONE ITALIA	Domestic 22%	VP5 (input)	Telecoms
WIND TRE, WINDTRE	Domestic 22%	VP5 (input)	Telecoms
FASTWEB	Domestic 22%	VP5 (input)	Internet/telecoms
ILIAD	Domestic 22%	VP5 (input)	Mobile telecoms

3.4 Insurance (exempt — exclude)

Pattern	Treatment	Notes
GENERALI, ASSICURAZIONI GENERALI	EXCLUDE	Insurance, exempt (Art. 10 c.1 n.2)
ALLIANZ, ALLIANZ ITALIA	EXCLUDE	Same
UNIPOL, UNIPOLSAI	EXCLUDE	Same
AXA ITALIA	EXCLUDE	Same
CATTOLICA ASSICURAZIONI, ZURICH	EXCLUDE	Same
ASSICURAZIONE, POLIZZA	EXCLUDE	All insurance exempt

3.5 Post and logistics

Pattern	Treatment	Field	Notes
POSTE ITALIANE (standard mail)	EXCLUDE for standard postage		Universal postal service, exempt
POSTE ITALIANE (parcels, Poste Delivery)	Domestic 22%	VP5	Non-universal services are taxable
SDA EXPRESS, BRT, BARTOLINI	Domestic 22%	VP5	Express courier, taxable
DHL EXPRESS ITALIA	Domestic 22%	VP5	Express courier
GLS ITALY, TNT ITALIA	Domestic 22%	VP5	Courier

3.6 Transport (Italy domestic)

Pattern	Treatment	Field	Notes
TRENITALIA, ITALO, NTV	Domestic 10%	VP5 (input)	Rail transport at reduced rate
ATAC, ATM MILANO, GTT, ANM	Domestic 10%	VP5 (input)	Urban public transport, reduced rate
UBER IT, UBER ITALY	Domestic 10% (transport)	VP5	Ride-hailing, transport reduced rate
TAXI, RADIOTAXI	Domestic 10%	VP5	Local taxi, reduced rate
ALITALIA, ITA AIRWAYS (domestic)	Domestic 10%	VP5	Domestic flights at 10%
ITA AIRWAYS, RYANAIR, EASYJET (international)	EXCLUDE / 0%		International flights exempt
AUTOSTRADE, TELEPASS	Domestic 22%	VP5	Motorway tolls at 22%

3.7 Food retail (blocked unless hospitality business)

Pattern	Treatment	Notes
ESSELUNGA	Default BLOCK input VAT	Personal provisioning. Deductible only if hospitality/catering business.
CONAD, COOP, EUROSPIN, LIDL	Default BLOCK	Same
CARREFOUR ITALIA, PENNY, MD	Default BLOCK	Same
PAM, DESPAR, IPER	Default BLOCK	Same
RISTORANTE, TRATTORIA, PIZZERIA, BAR	Default BLOCK	Entertainment — see Section 5.12

3.8 SaaS — EU suppliers (reverse charge, Art. 17 c.2 / inversione contabile)

These are billed from EU entities (typically Ireland or Luxembourg) and trigger inversione contabile.

Pattern	Billing entity	Field	Notes
GOOGLE (Ads, Workspace, Cloud)	Google Ireland Ltd (IE)	VP3/VP10 + VP5	Inversione contabile: output in VP4, input in VP5
MICROSOFT (365, Azure)	Microsoft Ireland Operations Ltd (IE)	VP3/VP10 + VP5	Inversione contabile
ADOBE	Adobe Systems Software Ireland Ltd (IE)	VP3/VP10 + VP5	Inversione contabile
META, FACEBOOK ADS	Meta Platforms Ireland Ltd (IE)	VP3/VP10 + VP5	Inversione contabile
LINKEDIN (paid)	LinkedIn Ireland Unlimited (IE)	VP3/VP10 + VP5	Inversione contabile
SPOTIFY TECHNOLOGY	Spotify AB (SE)	VP3/VP10 + VP5	EU, inversione contabile
DROPBOX	Dropbox International Unlimited (IE)	VP3/VP10 + VP5	Inversione contabile
SLACK	Slack Technologies Ireland Ltd (IE)	VP3/VP10 + VP5	Inversione contabile
ATLASSIAN (Jira, Confluence)	Atlassian Network Services BV (NL)	VP3/VP10 + VP5	EU, inversione contabile
ZOOM	Zoom Video Communications Ireland Ltd (IE)	VP3/VP10 + VP5	Inversione contabile
STRIPE (subscription fees)	Stripe Technology Europe Ltd (IE)	VP3/VP10 + VP5	Transaction fees may be exempt — see 3.11

3.9 SaaS — non-EU suppliers (reverse charge, Art. 17 c.2)

Pattern	Billing entity	Field	Notes
AWS (standard)	AWS EMEA SARL (LU) — check	VP3/VP10 + VP5	LU entity → EU inversione contabile
NOTION	Notion Labs Inc (US)	VP11/VP12 + VP5	Non-EU reverse charge
ANTHROPIC, CLAUDE	Anthropic PBC (US)	VP11/VP12 + VP5	Non-EU reverse charge
OPENAI, CHATGPT	OpenAI Inc (US)	VP11/VP12 + VP5	Non-EU reverse charge
GITHUB (standard plans)	GitHub Inc (US)	VP11/VP12 + VP5	Check if billed by IE entity
FIGMA	Figma Inc (US)	VP11/VP12 + VP5	Non-EU reverse charge
CANVA	Canva Pty Ltd (AU)	VP11/VP12 + VP5	Non-EU reverse charge
HUBSPOT	HubSpot Inc (US) or HubSpot Ireland Ltd (IE) — check	VP11/VP12 or VP3/VP10	Depends on billing entity
TWILIO	Twilio Inc (US)	VP11/VP12 + VP5	Non-EU reverse charge

3.10 SaaS — the exception (NOT reverse charge)

Pattern	Treatment	Why
AWS EMEA SARL	EU inversione contabile VP3/VP10 + VP5 (Luxembourg entity)	Standard EU reverse charge applies. If invoice shows Italian IVA charged, treat as domestic 22%.

3.11 Payment processors

Pattern	Treatment	Notes
STRIPE (transaction fees)	EXCLUDE (exempt)	Payment processing fees are exempt financial services
PAYPAL (transaction fees)	EXCLUDE (exempt)	Same
STRIPE (monthly subscription)	EU inversione contabile VP3/VP10 + VP5	Stripe IE entity
SUMUP, SQUARE, ZETTLE	Check invoice	If Italian entity: domestic 22%; if IE/EU entity: inversione contabile
NEXI, SATISPAY	Check invoice	Italian payment processor — fees may be exempt or taxable

3.12 Professional services (Italy)

Pattern	Treatment	Field	Notes
COMMERCIALISTA, STUDIO COMMERCIALE	Domestic 22%	VP5	Always deductible
AVVOCATO, STUDIO LEGALE	Domestic 22%	VP5	Deductible if business legal matter
NOTAIO, STUDIO NOTARILE	Domestic 22%	VP5	Notarial fees on business transactions
CONSULENTE DEL LAVORO	Domestic 22%	VP5	Payroll consultant, deductible
ARCHITETTO, INGEGNERE, GEOMETRA	Domestic 22%	VP5	Professional services
REGISTRO IMPRESE	EXCLUDE	Company registry fee, government body

3.13 Payroll and social security (exclude entirely)

Pattern	Treatment	Notes
INPS, CONTRIBUTI INPS	EXCLUDE	Social security contributions
INAIL, PREMIO INAIL	EXCLUDE	Workplace insurance
STIPENDIO, SALARIO, BUSTA PAGA	EXCLUDE	Wages — outside IVA scope
TFR, TRATTAMENTO FINE RAPPORTO	EXCLUDE	Severance fund, out of scope
CASSA PREVIDENZA, ENPAM, CNPADC	EXCLUDE	Professional pension fund

3.14 Property and rent

Pattern	Treatment	Notes
AFFITTO COMMERCIALE, LOCAZIONE COMMERCIALE	Domestic 22%	Commercial lease where landlord opted to charge IVA
AFFITTO, LOCAZIONE (residential, no IVA)	EXCLUDE	Residential lease exempt
IMU, TASI	EXCLUDE	Property tax, not a supply
CONDOMINIO	EXCLUDE or Domestic 22%	Building management — check if IVA invoiced

3.15 Internal transfers and exclusions

Pattern	Treatment	Notes
GIROCONTO, BONIFICO INTERNO	EXCLUDE	Internal movement
TRASFERIMENTO TRA CONTI	EXCLUDE	Own-account transfer
DIVIDENDO	EXCLUDE	Dividend payment, out of scope
RATA MUTUO, RIMBORSO PRESTITO	EXCLUDE	Loan repayment, out of scope
PRELIEVO BANCOMAT, PRELIEVO CONTANTI	TIER 2 — ask	Default exclude; ask what cash was spent on
APPORTO PERSONALE, VERSAMENTO SOCIO	EXCLUDE	Owner injection

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Section 4 — Worked examples

These are six fully worked classifications drawn from a hypothetical bank statement of an Italy-based self-employed IT consultant (regime ordinario). They illustrate the trickiest cases.

Example 1 — Non-EU SaaS reverse charge (Notion)

Input line: 03.04.2026 ; NOTION LABS INC ; DEBIT ; Monthly subscription ; USD 16.00 ; EUR 14.68

Reasoning: Notion Labs Inc is a US entity (Section 3.9). No IVA on the invoice. This is a service received from a non-EU supplier. The Italian client must self-assess IVA (inversione contabile / autofattura) under Art. 17 c.2 DPR 633/72. The client issues an autofattura, records output IVA in VP4 and input IVA in VP5. Net effect zero for a fully taxable client.

Output:

Date	Counterparty	Gross	Net	VAT	Rate	Field (input)	Field (output)	Default?	Question?	Excluded?
03.04.2026	NOTION LABS INC	-14.68	-14.68	3.23	22%	VP5	VP4 (via VP12)	N	—	—

Example 2 — EU service, inversione contabile (Google Ads)

Input line: 10.04.2026 ; GOOGLE IRELAND LIMITED ; DEBIT ; Google Ads April 2026 ; -850.00 ; EUR

Reasoning: Google Ireland Limited is an IE entity — standard EU inversione contabile. Google Ads is a service. Output IVA in VP4, input IVA in VP5. Net → VP3/VP10. Both sides must appear. Net effect zero for a fully taxable client.

Output:

Date	Counterparty	Gross	Net	VAT	Rate	Field (input)	Field (output)	Default?	Question?	Excluded?
10.04.2026	GOOGLE IRELAND LIMITED	-850.00	-850.00	187.00	22%	VP5	VP4 (via VP3)	N	—	—

Example 3 — Entertainment, partially recoverable in Italy

Input line: 15.04.2026 ; RISTORANTE DA MARIO ROMA ; DEBIT ; Business dinner ; -220.00 ; EUR

Reasoning: Restaurant transaction. In Italy, business entertainment (spese di rappresentanza) has complex deductibility rules. For IVA purposes, restaurant meals are deductible if they qualify as business expenses under Art. 19 DPR 633/72 and are properly documented with a fattura (not just a scontrino/receipt). The IVA deduction was restored by D.L. 112/2008, but personal meals remain blocked. Default: block, flag for reviewer. If confirmed as documented business expense with fattura → deductible at 10% (restaurant rate).

Output:

Date	Counterparty	Gross	Net	VAT	Rate	Field	Default?	Question?	Excluded?
15.04.2026	RISTORANTE DA MARIO ROMA	-220.00	-220.00	0	—	—	Y	Q1	"Restaurant: do you have a fattura (not scontrino)? Confirm business purpose."

Example 4 — Capital goods (bene strumentale)

Input line: 18.04.2026 ; DELL ITALIA SRL ; DEBIT ; Invoice DEL2026-0041 Laptop XPS 15 ; -1,595.00 ; EUR

Reasoning: The gross amount is €1,595. In Italy, assets with a useful life beyond one year and value above €516.46 (net of IVA) are capitalised as beni strumentali. €1,595 / 1.22 = €1,307.38 > €516.46. This is a capital goods purchase. Input IVA is deductible (VP5) as for any business purchase. The distinction matters for income tax depreciation, not for IVA recovery — but flag it for proper registro dei beni ammortizzabili entry.

Output:

Date	Counterparty	Gross	Net	VAT	Rate	Field	Default?	Question?	Excluded?
18.04.2026	DELL ITALIA SRL	-1,595.00	-1,307.38	-287.62	22%	VP5	N	—	—

Example 5 — EU B2B service sale (inbound receipt)

Input line: 22.04.2026 ; STUDIO KREBS GMBH ; CREDIT ; Invoice IT-2026-018 IT consultancy March ; +3,500.00 ; EUR

Reasoning: Incoming €3,500 from a German company. B2B services: place of supply is the customer's country (Germany) under Art. 7-ter DPR 633/72 / Art. 44 VAT Directive. The client invoices without IVA with notation "Inversione contabile — Art. 196 Direttiva 2006/112/CE". Report as non-taxable (operazione non imponibile). Confirm: (a) customer is VAT-registered — verify German USt-IdNr on VIES; (b) invoice is correctly issued.

Output:

Date	Counterparty	Gross	Net	VAT	Rate	Field	Default?	Question?	Excluded?
22.04.2026	STUDIO KREBS GMBH	+3,500.00	+3,500.00	0	n/a	VP2 (non-imp.)	Y	Q2 (HIGH)	"Verify German USt-IdNr on VIES"

Example 6 — Motor vehicle, partial recovery

Input line: 28.04.2026 ; LEASYS SPA ; DEBIT ; Lease payment Fiat 500X ; -450.00 ; EUR

Reasoning: Car lease payment. In Italy, IVA on passenger vehicles is deductible at 40% if the vehicle is used for business (Art. 19-bis1 lett. c DPR 633/72). This is a partial deduction (not a full block as in Malta). The 40% is a legal presumption of business use. Full 100% deduction only applies to taxis, driving schools, car rental, and vehicles forming the core business asset. For an IT consultant: 40% deductible.

Output:

Date	Counterparty	Gross	Net	VAT	Rate	Field	Default?	Question?	Excluded?
28.04.2026	LEASYS SPA	-450.00	-368.85	-81.15 (x 40% = -32.46 deductible)	22%	VP5 (partial)	Y	Q3	"Vehicle: 40% IVA deductible. Is this a core business vehicle (taxi/rental)?"

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Section 5 — Tier 1 classification rules (compressed)

5.1 Standard rate 22% (Art. 16 c.1 DPR 633/72)

Default rate. Sales → VP2/VP4. Purchases → VP5.

5.2 Reduced rate 10% (Table A, Part III, DPR 633/72)

Applies to: restaurants, hotels, renovation of residential buildings, certain food products (meat, fish, certain processed foods), passenger transport, cultural events. Sales → VP2/VP4. Purchases → VP5.

5.3 Reduced rate 5% (Table A, Part II-bis)

Applies to: certain health and social services, selected food items (herbs, spices), basilico, oregano. Very narrow. Sales → VP2/VP4. Purchases → VP5.

5.4 Super-reduced rate 4% (Table A, Part II)

Applies to: basic foodstuffs (bread, milk, olive oil, fresh fruit/vegetables), printed books and newspapers, first-home construction materials, medical devices for disabled persons. Sales → VP2/VP4. Purchases → VP5.

5.5 Zero rate and exempt with credit (non imponibile)

Exports outside EU → Art. 8 DPR 633/72 (non imponibile, requires export evidence). Intra-EU B2B supplies of goods → Art. 41 D.L. 331/93 (non imponibile, requires VIES verification). Intra-EU B2B services → Art. 7-ter (non imponibile, customer country rule).

5.6 Exempt without credit (esente Art. 10)

Medical services, education, insurance, financial services, residential rent, postal universal service. No output IVA, no input IVA deduction on related costs. If significant → R-IT-4 refuses.

5.7 Local standard purchases

Input IVA on a compliant fattura from an Italian supplier is deductible for purchases used in taxable business activity. Subject to blocked-input rules (5.12). Map to VP5.

5.8 Inversione contabile — EU services received (Art. 17 c.2 + Art. 7-ter)

EU supplier invoices at 0% with reverse-charge note: client issues autofattura or integrazione della fattura. Output IVA → VP4, input IVA → VP5. Net → VP3/VP10. Net effect zero for fully taxable client.

5.9 Inversione contabile — EU goods received

Physical goods from EU: integration of supplier invoice. Output IVA → VP4, input IVA → VP5. Net → VP3/VP10.

5.10 Inversione contabile — non-EU services and imports

Non-EU services: autofattura required. Output IVA and input IVA both self-assessed. → VP12/VP11 + VP4/VP5. Goods imports: since 2022, IVA on imports can be deferred to the LIPE (pre-liquidazione doganale).

5.11 Capital goods (beni strumentali)

Assets > €516.46 net: capitalize for income tax depreciation (registro beni ammortizzabili). For IVA purposes, input deduction follows the same rules as other purchases (VP5) — there is no separate IVA line for capital goods on the LIPE. The distinction matters for the annual Dichiarazione IVA and for the 5-year adjustment period (rettifica della detrazione, Art. 19-bis2).

5.12 Blocked input IVA (Art. 19-bis1 DPR 633/72)

• Motor vehicles (autovetture): 40% deductible (legal presumption). 100% for taxis, driving schools, car rental, vehicles as core business tools.
• Fuel (carburante): 40% deductible for vehicles at 40%; 100% for fully deductible vehicles. Must be paid via traceable means (no cash).
• Entertainment (spese di rappresentanza): IVA deductible if proper fattura obtained and expense is proportionate to business. Meals and accommodation deductible with fattura since D.L. 112/2008.
• Accommodation (alberghi): IVA deductible since D.L. 112/2008 if documented with fattura and for business.
• Personal use items: not deductible.
• Phone/telecoms: 50% deductible (Art. 19-bis1 lett. d) — overridable if exclusively business.
• Gifts: IVA deductible only if unit cost ≤ €50.

5.13 Quarterly interest surcharge

Quarterly filers must add 1% interest on the net IVA payable for the quarter (Art. 7 DPR 542/99). This interest goes on the LIPE as an additional amount. Monthly filers do not pay this surcharge.

5.14 Sales — local domestic (any rate)

Charge 22%, 10%, 5%, or 4% as applicable. All via fattura elettronica through SDI.

5.15 Sales — cross-border B2C

Goods to EU consumers above €10,000 EU-wide threshold → R-EU-5 (OSS refusal). Below threshold → Italian IVA at applicable rate.

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Section 6 — Tier 2 catalogue (compressed)

6.1 Fuel and vehicle costs

Pattern: ENI, Q8, IP, ESSO, SHELL, fuel receipts. Why insufficient: 40% vs 100% deduction depends on vehicle type. Default: 40% recovery. Question: "Is this a core business vehicle (taxi/rental) or a standard company car?"

6.2 Restaurants and entertainment

Pattern: any named ristorante, trattoria, pizzeria, bar. Why insufficient: IVA on meals is deductible only with a fattura (not scontrino). Default: block. Question: "Do you have a fattura elettronica (not just a scontrino) for this meal? Was it a business expense?"

6.3 Ambiguous SaaS billing entities

Pattern: Google, Microsoft, Adobe, Meta, etc. Default: non-EU reverse charge (VP11/VP12 + VP5). Question: "Could you check the invoice? I need the legal entity name and country."

6.4 Round-number incoming transfers from owner-named counterparties

Default: exclude as owner injection. Question: "The €X transfer from [name] — customer payment, own money, or loan?"

6.5 Incoming transfers from individual names (not owner)

Default: domestic B2C sale at 22%. Question: "Was it a sale? Business or consumer?"

6.6 Incoming transfers from foreign counterparties

Default: domestic 22%. Question: "B2B with Partita IVA, B2C, goods or services, which country?"

6.7 Large one-off purchases (potential beni strumentali)

Pattern: near €516.46 threshold. Default: if net > €516.46 → capital goods. Question: "Confirm total invoice amount."

6.8 Mixed-use phone, internet

Pattern: TIM, Vodafone, WindTre personal lines. Default: 50% deductible (Art. 19-bis1 lett. d). Question: "Is this a dedicated business line or mixed-use?"

6.9 Outgoing transfers to individuals

Default: exclude as drawings. Question: "Contractor payment, wages, refund, or personal?"

6.10 Cash withdrawals

Pattern: prelievo bancomat, prelievo contanti. Default: exclude. Question: "What was the cash used for?"

6.11 Rent payments

Pattern: affitto, locazione, canone. Default: no IVA (residential default). Question: "Commercial or residential? Does the landlord charge IVA?"

6.12 Foreign hotel and accommodation

Default: exclude from input IVA. Question: "Business trip?" (Income tax deduction possible.)

6.13 Airbnb income

Default: [T2] flag. Question: "Short-term tourist rental? Duration? Cedolare secca applied?"

6.14 Domestic reverse charge (construction, cleaning)

Pattern: payments to subcontractors in construction and cleaning sectors. Why insufficient: Italy has broad domestic reverse charge (Art. 17 c.6 DPR 633/72) for construction subcontracting, building cleaning, and energy sector. Default: [T2] flag. Question: "Is this a domestic reverse charge sector (construction/cleaning)?"

6.15 Platform sales

Default: if selling EU cross-border above €10,000 → R-EU-5. Otherwise: domestic 22% for sales; platform fees as EU inversione contabile. Question: "Do you sell to buyers outside Italy?"

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Section 7 — Excel working paper template (Italy-specific)

The base specification is in vat-workflow-base Section 3. This section provides the Italy-specific overlay.

Sheet "Transactions"

Columns A–L per the base. Column H ("Field code") accepts VP field codes from Section 1 of this skill. For inversione contabile transactions, enter both input and output fields separated by a slash.

Sheet "Field Summary"

One row per VP field. Mandatory rows:

| VP2 | Total taxable operations | =SUMIFS(Transactions!E:E, ...) |
| VP3 | Intra-EU acquisitions | =SUMIFS(Transactions!E:E, ..., "VP3") |
| VP4 | Total output IVA | =SUM(output VAT on all taxable and RC lines) |
| VP5 | Total input IVA | =SUM(input VAT on all deductible lines) |
| VP6 | Net IVA for period | =VP4-VP5 |
| VP7 | Credit from prior period | (manual entry) |
| VP10 | Intra-EU purchases | =VP3 |
| VP11 | Imports | =SUMIFS(..., "VP11") |
| VP12 | Reverse charge purchases | =SUMIFS(..., "VP12") |
| VP14 | Net amount due/credit | =VP6-VP7-VP8-VP9 |

Sheet "Return Form"

Final LIPE-ready figures.

IF VP5 > VP4:
  VP6 = credit (credito)
  VP14 = credit after adjustments
ELSE:
  VP6 = payable (debito)
  VP14 = net payable + 1% interest (if quarterly)

Mandatory recalc step

python /mnt/skills/public/xlsx/scripts/recalc.py /mnt/user-data/outputs/italy-vat-<period>-working-paper.xlsx

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Section 8 — Italian bank statement reading guide

Follow the universal exclusion rules in vat-workflow-base Step 6, plus these Italy-specific patterns.

CSV format conventions. Italian banks typically export in CSV or Excel with DD/MM/YYYY dates. Common columns: Data, Descrizione/Causale, Dare (debit), Avere (credit), Saldo. UniCredit and Intesa exports include ABI causale codes (e.g., 27 = bonifico, 48 = carta di credito).

Italian language variants. Affitto (rent), stipendio (salary), interessi (interest), bonifico (transfer), contributi (contributions), fattura (invoice), rimborso (refund), versamento (deposit), prelievo (withdrawal). Treat as English equivalents.

ABI causale codes. 27 = bank transfer (bonifico), 48 = credit card, 05 = direct debit (RID/SDD), 26 = cheque. The code helps classify.

Internal transfers and exclusions. Giroconto = internal transfer. Always exclude.

F24 payments. Tax payments via F24 (modello F24) appear as "PAGAMENTO F24" or with specific tax codes (6001-6012 for monthly IVA, 6031-6034 for quarterly IVA). Always exclude.

Fattura elettronica (SDI). Since 2019, all B2B invoices in Italy must be electronic via SDI. If the client has an SDI extract, it provides the most reliable data source for IVA classification — prefer over bank statement for invoice details.

Foreign currency transactions. Convert to EUR at the ECB rate or bank statement rate.

IBAN country prefix. IT = Italy. IE, LU, NL, FR, DE = EU. US, GB, AU, CH = non-EU.

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Section 9 — Onboarding fallback (only when inference fails)

9.1 Entity type

Inference rule: SRL, SPA, SAS = company; ditta individuale = sole trader; libero professionista = freelance professional. Fallback: "Ditta individuale, SRL, or libero professionista?"

9.2 VAT regime

Inference rule: if filing LIPE, they are regime ordinario. Fallback: "Are you under regime ordinario or regime forfettario?"

9.3 Partita IVA

Inference rule: IT-format P.IVA on invoices. Fallback: "What is your Partita IVA? (IT + 11 digits)"

9.4 Filing period and frequency

Inference rule: date range on statement. Fallback: "Which period? Monthly or quarterly filer?"

9.5 Industry and sector

Inference rule: counterparty mix. Fallback: "What does the business do?"

9.6 Employees

Inference rule: INPS outgoing. Fallback: "Do you have employees?"

9.7 Exempt supplies

Inference rule: medical/financial/educational income. Fallback: "Do you make any exempt sales?" If yes → R-IT-4 refuses.

9.8 Credit carried forward

Inference rule: not inferable. Always ask. Question: "Do you have IVA credit from the prior period? (VP7)"

9.9 Cross-border customers

Inference rule: foreign IBANs. Fallback: "Customers outside Italy? EU or non-EU? B2B or B2C?"

9.10 Public administration customers

Inference rule: payments from PA-sounding entities. Conditional fallback: "Do you supply to Italian public administration?" If yes → R-IT-3 (split payment) refuses.

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Section 10 — Reference material

Validation status

This skill is v2.0, written in April 2026 to align with the three-tier Accora architecture.

Sources

Primary legislation:

1. DPR 633/72 (Decreto IVA) — the core Italian VAT law
2. D.L. 331/93 — intra-EU transactions
3. DPR 542/99 — quarterly filing and interest surcharge

Agenzia delle Entrate guidance: 4. LIPE form and completion instructions — https://www.agenziaentrate.gov.it 5. Fatturazione elettronica guidance 6. Circular letters on reverse charge and domestic inversione contabile

EU directive: 7. Council Directive 2006/112/EC — via eu-vat-directive companion skill 8. Council Implementing Regulation 282/2011

Other: 9. VIES validation — https://ec.europa.eu/taxation_customs/vies/ 10. ECB euro reference rates

Known gaps

1. Supplier pattern library does not cover every Italian SME.
2. Split payment (scissione dei pagamenti) for PA customers is out of scope — R-IT-3 refuses.
3. Domestic reverse charge (Art. 17 c.6) is flagged T2 only.
4. Capital goods threshold (€516.46 net) is per current guidance — verify annually.
5. Motor vehicle 40% presumption may change — verify annually.
6. Restaurant IVA deductibility requires fattura (not scontrino) — skill flags but cannot verify document type.
7. Quarterly 1% interest surcharge calculation is approximate.

Change log

• v2.0 (April 2026): Full rewrite to Malta v2.0 structure. 10 sections. Country-specific supplier pattern library.
• v1.0: Initial skill.

Self-check (v2.0)

1. Quick reference at top: yes (Section 1).
2. Supplier library: yes (Section 3, 15 sub-tables).
3. Worked examples: yes (Section 4, 6 examples).
4. Tier 1 rules: yes (Section 5, 15 rules).
5. Tier 2 catalogue: yes (Section 6, 15 items).
6. Excel template: yes (Section 7).
7. Onboarding fallback: yes (Section 9, 10 items).
8. All 8 Italy-specific refusals: yes (Section 2).
9. Reference material: yes (Section 10).
10. Motor vehicle 40% partial deduction (key Italy difference): yes (Section 5.12 + Example 6).
11. Restaurant fattura requirement: yes (Section 5.12 + Example 3).
12. Fattura elettronica / SDI requirement: yes (Section 8).
13. Quarterly 1% interest surcharge: yes (Section 5.13).
14. Non-EU SaaS autofattura: yes (Example 1).
15. Domestic reverse charge flagged: yes (Section 6.14).

End of Italy VAT Return Skill v2.0

This skill is incomplete without BOTH companion files loaded alongside it: vat-workflow-base v0.1 or later AND eu-vat-directive v0.1 or later.

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