Assomusica appeals to Italian Government on VAT split payments

Italy’s Association of Producers and Organisers of Live Music Shows (Assomusica) has called on the Italian Government to spare the live music and entertainment sector from the split payment of VAT scheme, after the European Commission gave the green light for it to be extended.

Italy first introduced its split payment plan in 2017, which sees customers pay the VAT element of select transactions into restricted VAT accounts at the banks of vendors. 

Tax authorities are then able to closely monitor VAT due and limit the chance of non-repayment. 

Assomusica reported the country’s Ministry of Economy and Finance (MEF) announced the European Commission had granted permission for the renewal of the authorisation to apply the split payment of VAT.

However, newly appointed Assomusica president Carlo Parodi has appealed to the Italian Government to exclude the entertainment sector and live music business in particular. 

He said (translated): “Split payment is the regime intended for suppliers of the public administration to establish the liquidation and payment of VAT. 

“Companies that work with the Public Administration for concerts and public performances are damaged by the non-collection of VAT, creating a financial imbalance and a cash flow gap. We are mostly talking about small concerts and activities in support of territories and local principals: it is therefore reasonable not to penalise those operators, mostly micro and small businesses, who work in this market segment. 

“Today, thanks to electronic invoicing, the urgency of the measure is less felt and therefore the abolition of this regime is requested for the production sector and the organisation of live music shows.”