Italian Wedding - VAT free?

portcrap

Hi

Getting married abroad in Italy this year. Just wondering, I was told that if the Italian vendors invoiced me directly, I would be liable for VAT, or would not have to pay the VAT charge. Is this correct?

Really need help with this, as it could save us a small fortune.

Thanks

PC

ABajaninCork

Knowing how the Italians can be, I would never take their word for it. I'd budget allowing for VAT at the Italian rate. If they don't charge VAT (Can't remember the Italian term), cool runnings - you keep the dough! If they do - then you've got the money to pay.

What did the venue tell you? And whatever they say, get it in writing!!

Tigger

ABajaninCork wrote: »

Knowing how the Italians can be, I would never take their word for it.

Anti-Italianism or Italophobia is a negative attitude regarding Italian people or people with Italian ancestry, often expressed through the use of prejudice or stereotypes

http://en.wikipedia.org/wiki/Anti-Italianism

ABajaninCork

Tigger wrote: »

Anti-Italianism or Italophobia is a negative attitude regarding Italian people or people with Italian ancestry, often expressed through the use of prejudice or stereotypes

http://en.wikipedia.org/wiki/Anti-Italianism

Pardon? Where did I say I am anti-Italian? And how is your answer helping the OP? I am speaking from personal experience. What is your angle other than to post foolishness??

kaki

portcrap wrote: »

Hi

Getting married abroad in Italy this year. Just wondering, I was told that if the Italian vendors invoiced me directly, I would be liable for VAT, or would not have to pay the VAT charge. Is this correct?

Really need help with this, as it could save us a small fortune.

Thanks

PC

Possibly they were referring to the fact the Non-EU tourists are not liable for IVA (Italian VAT - Imposta sul valore aggiunto). If you were a Canadian resident for example, either the suppliers would take note of your passport details and not charge you IVA upfront, or you could retain your receipts and request the VAT refund upon your departure from the EU.

I'm guessing that you or your partner are Irish or at least reside here, in which case the above does not apply.

The only other above board way to not pay tax is to open an Italian VAT number (partita IVA) - hardly worth doing for a wedding as it is messy and expensive.

Maybe they were hinting at not charging VAT in return for you paying in cash? This would be illegal.

ABajaninCork

Thanks Kaki - The IVA was the tax I was thinking of, but couldn't remember! And I think you're right - if the couple are EU resident, then the VAT/IVA would be due in any case...

meeeeh

kaki wrote: »

Possibly they were referring to the fact the Non-EU tourists are not liable for IVA (Italian VAT - Imposta sul valore aggiunto). If you were a Canadian resident for example, either the suppliers would take note of your passport details and not charge you IVA upfront, or you could retain your receipts and request the VAT refund upon your departure from the EU.

I'm guessing that you or your partner are Irish or at least reside here, in which case the above does not apply.

The only other above board way to not pay tax is to open an Italian VAT number (partita IVA) - hardly worth doing for a wedding as it is messy and expensive.

Maybe they were hinting at not charging VAT in return for you paying in cash? This would be illegal.

Even then I am not sure you could claim back for services. I don't know how it works now but it used to be that certain forms had to be filled and you could claim back when exiting the country. I'm not from Italy but I seriously doubt you would get vat free invoice even with Irish vat number. Either they were suggesting cash, I doubt you could do it in any other way.

And btw I am pretty sure I know more Italians than one of the posters above. I lived next door to Italy 25 years, I dealt with Italians a lot, I've travelled there a lot. No way I would dare to be presumptuous enough to claim I know "how Italians can be" and use the same brush for the whole country.

ABajaninCork

meeeeh wrote: »

Even then I am not sure you could claim back for services. I don't know how it works now but it used to be that certain forms had to be filled and you could claim back when exiting the country. I'm not from Italy but I seriously doubt you would get vat free invoice even with Irish vat number. Either they were suggesting cash, I doubt you could do it in any other way.

And btw I am pretty sure I know more Italians than one of the posters above. I lived next door to Italy 25 years, I dealt with Italians a lot, I've travelled there a lot. No way I would dare to be presumptuous enough to claim I know "how Italians can be" and use the same brush for the whole country.

Oh well. I too have dealt with Italians. I have Italian friends (who laugh at my dreadful Italian) as one of my mates married an Italian guy and lived there for many years before moving back to the UK. My SiL worked there for a while, speaks Italian fluently and goes there on hols at least twice a year. I find them the nicest, most genuine and friendliest people going. So what?

The point I was (perhaps clumsily) trying to make was for the OP to check and double-check what the venue was telling him...

portcrap

Thank you all so much for the replies.

Some vendors have suggested paying in cash and therby getting a "discount" off the VAT. It came about regarding one particular vendor who said they were not charging me VAT because I was from outside Italy. When pressed he said that if the invoices were in my name VAT could not be charged as I was not resident in Italy.

Is there anywhere that would give me a definitive answer on this? I take the point that as EU residents we may be liable for VAT regardless, but it would be great if there was some loophole!

meeeeh

I don't think there is any loophole. This website might help. I think they are offering you a service off the books unless you are registered for Vat.

Italy had some very high profile tax evasion sweeps a couple of years ago. It might be because of the new rules that it is a bit harder for Italians to receive or pay large sums of money and escape look in by Italian tax authorities. But whatever it is I seriously doubt an actual loophole exists, it might be just easier for you to evade paying tax than for Italian residents.

kaki

See here.

Basically:

• Purchases by an EU consumer in Italy are subject to VAT
• Purchases by a VAT-registered EU company in Italy are not subject to VAT
• Purchases by non-EU companies or consumers in Italy are not subject to VAT

I don't think that I can speak for an entire country - but as I'm married to an Italian and live there for a few years I will try!. My impression is Tax evasion in Italy was culturally very commonplace - historically. There are still pockets (especially small-to-medium businesses, where the going is very tough). In more recent times though, with operations and stings by the Guardia della Finanza (the Italian Revenue - authorised to carry weapons!) becoming more commonplace and a general change in public opinion, it's very much encouraged and practiced to make a point of asking for a receipt/invoice for every financial transaction (see the No Scontrino, No Party movement for example).

Anyway, OP there isn't any publicised loophole/exception for wedding services - as the other posters have suggested, it sounds like the vendor is cajoling you into a cash payment with the promise of a discount ("VAT exempt"). I'd be more than hesitant to take them up on the offer tbh.

Best of luck with your wedding planning!