Italian VAT numbers might not be valid

The Italian government has been reorganizing its internal VAT legislation. It cancelled some Italian VAT numbers retroactively. Also several Italian companies faced the cancellation of their VAT number without a prior notice from the tax authorities.

This situation might cause a problem to every company that is selling to Italian clients. The sales of merchandise by a Belgian company to an Italian company is generally exempted from VAT, under the condition that the Italian company has a valid VAT number.

In case the VAT number of your client is suddenly not valid anymore, the Belgian tax authorities will allow only a VAT exemption if:

- there is a long term relationship between the client and Belgian company, and,
- the Italian comany has to prove that it is VAT tax liable at the moment of delivery, and,
- the Italian company has to prove its application for the new, valid VAT number.

Therefore Panis Accountancy requests you to double-check the VAT number of your Italian clients via the VIES website of the European Community.