Short for Standard Audit File for Tax, SAF-T is an XML-based file type used to exchange tax information electronically to tax authorities. The goal of the initiative is to enhance tax compliance and streamline data exchange between taxpayers and tax authorities.
SAF-T is an international standard used across Europe, including countries such as Poland, France, Germany, Romania, Lithuania, Norway and soon Bulgaria.
Different types of information typically have varying reporting requirements. For example, once implemented in Bulgaria, SAF-T rules will require the monthly filing of general ledger entries, purchase and sales invoices and payment records – while asset information must be submitted annually.
When to submit a SAF-T declaration in Bulgaria
SAF-T’s implementation in Bulgaria begins in January 2026. There will be three mandated SAF-T reports, all with different reporting cadences.
Monthly – submitted by 14th day of following month: General ledger, Accounts Payable and Receivable, Sales and purchase invoices
Annually – submitted by 30 June of following year: Fixed assets
On-demand: Inventory
Bulgaria SAF-T implementation timeline
Here are the key dates in Bulgaria’s SAF-T plans.
January 2026: SAF-T applies to large enterprises that either have:
Net sales revenue for 2023 exceeding BGN 300 million (approx. 150 million EUR)
Tax and social security contributions collected exceeding BGN 3.5 million
January 2027: SAF-T applies to large, medium and small enterprises that either have:
Net sales revenue for 2024 exceeding BGN 300 million (approx. 150 million EUR)
Tax and social security contributions collected exceeding BGN 3.5 million
January 2028: Large, medium and small enterprises that either have:
Net sales revenue for 2025 exceeding BGN 15 million (approx. 7.5 million EUR)
Tax and social security contributions collected exceeding BGN 1.5 million
January 2029 – SAF-T applies to all large, medium and small enterprises – regardless of additional conditions.
January 2030 – SAF-T also applies to micro-enterprises.
Note: There will be a six-month grace period for SAF-T reporting, and taxpayers can submit corrections to submitted files within six months without being penalised by the tax authorities.
Implementing SAF-T as a business
Complying with your tax obligations is vital. In the coming years, SAF-T will serve as another requirement for Bulgarian taxpayers, providing deadlines for the accurate reporting of important data. This will only add to your compliance workload.
Sovos SAF-T solutions can help your organisation to spend less time on compliance and more on growing your business. Automate your preparation process to drive efficiency and ensure accuracy, providing peace of mind that you will avoid potential fines and penalties.
SAF-T is not mandatory in Bulgaria, though its legal implementation begins in 2026 for qualifying large businesses. It will be obligatory for businesses of all sizes in Bulgaria from January 2030.
From January 2026, large enterprises will need to file SAF-T reports if their net sales revenue for 2023 exceeds BGN 300 million or tax and social security contributions collected exceed BGN 3.5 million.
From January 2027, large, medium and small enterprises will have to file SAF-T reports if their net sales revenue for 2023 exceeds BGN 300 million or tax and social security contributions collected exceed BGN 3.5 million.
From January 2028, large, medium and small enterprises must comply with SAF-T requirements if their net sales revenue for 2025 exceeds BGN 15 million or tax and social security contributions collected exceed BGN 1.5 million.
From January 2029, Bulgaria’s SAF-T obligation will expand to include all large, medium and small enterprises. This will grow to include micro-enterprises in January 2030.
From 2026, applicable taxpayers in Bulgaria will have to submit SAF-T reports as per the following:
General ledgers, Accounts Payable Receivable, and sales and purchase invoices must be submitted monthly – specifically by the 14th day of the following month.
Fixed assets must be reported annually – specifically by the 30 June of the following year.
Inventory reports must be submitted whenever requested – this is an on-demand reporting process.
Join Sovos at the 18th Group Indirect Tax Exchange and gain insights from our expert on the Industry Adoption of E-Invoices and E-Reporting Challenges. Stay ahead of the latest e-Invoicing conversations and make the most of this premier conference and networking event. Reserve your ticket today!
Discover Romania’s recent SAF-T implementation and its complexities with E-Reporting, E-Invoicing, and E-Transport. Learn from established systems in Portugal, Denmark and Norway, and prepare for upcoming SAF-T rollouts in Bulgaria and Hungary, as well as new E-Invoicing mandates across the EU.
Join us for an in-depth webinar designed to help event organisers navigate the complexities of VAT compliance for international events. Discover essential steps for handling cross-border VAT, understand Place of Supply rules for physical and virtual events (including the new 2025 updates) and learn how to avoid common VAT risks.
Our VAT Snapshot series aims to provide you with information to untangle the complex web of tax obligations created by multi-national trading, helping you stay compliant with the latest tax requirements across Europe. In our first webinar of 2025, we’ll discuss the latest e-invoicing updates in Poland, Estonia, Greece and Portugal.
February 10 to 12, 2025 in Dubai
The Middle East and Africa are facing a rapidly evolving landscape for E-Invoicing and VAT reporting. We follow this development and continue the successful first two editions of the E-Invoicing Exchange Summit and proudly announce the 3rd edition to be held in Dubai from February 10 to 12, 2025.
On the pre-conference day, Monday, February 10, you will have the opportunity to start the E-Invoicing Exchange Summit by attending the workshop “GENA Academy Essentials: Everything You Always Wanted to Know About E-Invoicing, but Were Afraid to Ask”. Furthermore, a great networking opportunity awaits you with the Icebreaker Reception in the early evening. The conference itself will take place on Tuesday and Wednesday, February 11 and 12, including the Networking Dinner on Tuesday evening.
Insightful presentations and interactive roundtable sessions on
Mastering E-Invoicing Now: Actionable Steps for Compliance and Efficiency
Streamlining Compliance for UAE E-Invoicing with SAP Document and Reporting Compliance
Convergence of Digital Real-Time Controls & Business Automation
Managing Tax Compliance Risks in the Middle East Post-E-Invoicing
Big Data vs Big Brother – How Mirror Visibility Drives Indirect Tax Consolidation
Global and Regional Compliance Update + Implementation and Adoption Progress Reports from around the Globe
France is one of the most challenging countries in Europe when it comes to the premium tax treatment of motor insurance policies. This is mainly due to the variety of taxes and charges that can apply and the differing treatment of different vehicle types.
This blog provides all the information you need to know about the correct treatment in France.
Which taxes are payable in relation to motor insurance policies in France?
First and foremost, Insurance Premium Tax (IPT) applies to motor insurance provided in France. The rate can vary (rates correct as of December 2024):
The standard rate for risks of any type relating to motor vehicles is 18%
The rate is usually 33% in the case of compulsory class 10 motor liability coverage
The rate for compulsory class 10 coverage is reduced to 15% for coverage provided to commercial agricultural vehicles and commercial vehicles greater than 3.5 tonnes
Class 3 motor cover is treated as a form of property coverage within the scope of contributions to the EUR 6.50 Common Fund for Victims of Terrorism when located in France. There is also a requirement to collect a CATNAT premium (with specific rates for motor coverage which are increasing from January 2025). IPT and contributions to the Major Risk Prevention Fund are due on this premium.
Compulsory class 10 cover triggers National Guarantee Fund contributions. This currently results in three separate rates applicable to premiums, set at 1.2%, 0.8% and 0.58%, respectively.
Finally, it is worth noting that class 3 or 10 coverage of vehicles used for agricultural operations may be excluded from the scope of contributions to the Major Risk Prevention Fund. They do, however, result in separate contributions of 11% due to the National Agricultural Risk Management Fund.
How are taxes on motor insurance policies calculated in France?
The majority of taxes and charges on motor insurance policies in France are calculated as a percentage of the taxable premium and are directly charged to the insured. There are some exceptions, though.
Where applicable, the 0.58% National Guarantee Fund contribution and contributions to the Major Risk Prevention Fund are both insurer-borne so do not result in direct additions to the premiums charged to the insured.
The EUR 6.50 contributions to the Common Fund for Victims of Terrorism are a fixed fee and apply to each insurance contract per annum – regardless of the premium value.
It should also be noted that the IPT treatment of motor insurance can be extended to include ancillary coverage, such as passenger accident cover. This is because the IPT treatment applies to risks of any nature relating to land motor vehicles. It is important to assess each risk to determine whether it is considered a risk related to land motor vehicles as this can be a contentious area in French law.
What vehicles are exempt from tax in France?
Electric vehicles are subject to an IPT exemption, albeit this was amended from January 2024 so that 75% of the premium was treated as exempt (with the remaining 25% being taxable as normal).
A 75% exemption applies to insurance incepting in 2024 for vehicles registered in 2024, but only in relation to the first insurance contract following the vehicle’s registration up to a maximum of 24 months. There is no law currently in effect extending this treatment for vehicles registered in 2025, so such vehicles will not benefit from the 75% exemption as it stands.
Coverage of any nature relating to commercial agricultural vehicles and commercial vehicles greater than 3.5 tonnes benefits from a full IPT exemption, except compulsory class 10 coverage. However, this does not provide an exemption from the applicability of the parafiscal charges mentioned above.
If you still have questions about the taxation of motor insurance policies or IPT inFrance, speak to our experts.
On 5 November, the long-awaited EU Commission’s VAT in the Digital Age (ViDA) proposal was approved by Member States’ Economic and Finance Ministers (ECOFIN). This webinar will examine the three pillars of the ViDA package and how you can prepare for the changes it will bring.
European tax authorities are advancing SAF-T implementation, introducing new requirements that will impact VAT compliance across the region. This webinar will offer insights into key updates, including Portugal’s SAF-T delay to 2026, Ukraine’s on-demand SAF-T for large taxpayers in 2025, Greece’s mandatory transport data fields in myDATA e-books from 1 December 2024, Romania’s SAF-T extension to non-established companies and mandatory e-reporting of B2C invoices from January 2025 and France’s reduced PPF scope and new PDP designation requirement for all companies.
In this webinar, we will revisit the foundational principles behind this mandate, covering its evolution up to the latest developments, so you have all you need to keep your business compliant.
Update: 12 March 2025 by Kelly Muniz
EU Officially Adopts ‘VAT in the Digital Age’
The VAT in the Digital Age Package (ViDA) has been adopted by the EU on 11 March 2025, 27 months after it was initially proposed by the Commission in late 2022.
The package includes a directive, regulation, and implementing regulation, focusing on three key areas: digitalizing VAT reporting by 2030, requiring online platforms to collect VAT on short-term accommodation and passenger transport services, and expanding the online VAT one-stop-shop to simplify cross-border VAT registration.
Next Steps
The new rules will take effect on the 20th day after publication in the Official Journal of the EU, with Member States required to transpose the directive into national law.
While many rules will come into effect only a few years from now, some will be effective immediately, such as Member States’ right to introduce mandatory domestic electronic invoicing without needing prior authorization from the EU.
The ViDA package marks a significant step towards modernizing VAT in the digital era, streamlining processes for businesses, and improving cross-border efficiency.
The European Parliament has approved the VAT in the Digital Age (ViDA) proposal, bringing it one step closer to official adoption. The proposal will now head to the Council of the EU for final approval, marking a key step in the effort to modernize VAT systems throughout the European Union.
ECOFIN Agrees on ViDA
The long-awaited VAT in the Digital Age (ViDA) proposal has been approved by Member States’ Economic and Finance Ministers. On 5 November 2024, during the Economic and Financial Affairs Council (ECOFIN) meeting, Member States unanimously agreed on adopting the ViDA package. This decision marks a major milestone in modernizing the VAT Directive, setting the stage for a more efficient and digital VAT system across the European Union.
Certain changes will take effect immediately once the package comes into force, while others will roll out in stages over the coming years.
The text will proceed to formal approval by the Parliament, after which it will be ready for official adoption.
Read our blog below for a detailed breakdown of the amendments impacting e-invoicing obligations, the new Digital Reporting Requirement (DRR), and the timeline for these changes.
New ViDA Proposal Set for ECOFIN Approval
The Council of the European Union has released a new proposal regarding the VAT in the Digital Age (ViDA) reform.
The proposal aims to modernise and streamline VAT systems across the EU, notably e-invoicing and Continuous Transaction Controls (CTC). Members States will review it on 5 November at the upcoming ECOFIN meeting.
If approved, a series of changes will take place over time – some of which will take effect as soon as the Directive enters into force. Here is an overview of the key updates, particularly on e-invoicing and CTC requirements.
What is new, and why the delay?
The new proposal does not substantially modify its previous version. The main change in the new ViDA proposal concerns the dates when measures become effective. Deadlines have been postponed as a result of the setbacks ViDA has faced since its initial draft.
The ViDA proposal has faced delays due to the complexity of its objectives, which are mainly to harmonise the varying VAT systems within the EU. In addition to the extensive consultations held during this process to balance different stakeholders’ interests, an approval of ViDA requires the alignment of Member States’ views and priorities.
This has proved a significant hurdle, as Member States have raised their concerns regarding different aspects of the proposal, such as implementation costs and alignment with EU data privacy rules, among others. ViDA must also go through the formal steps for approval by the European Parliament and the Council of the EU.
These factors combined have made ViDA adoption a lengthy process, but its implementation promises significant benefits in public and private sectors across the EU.
Recap: What is ViDA and what changes with its adoption?
Changes effective with the ViDA’s approval
Removal of EU approval for domestic e-invoicing: Under the current VAT Directive, EU approval is required for Member States to introduce domestic mandatory B2B e-invoicing. Countries such as Italy, Poland, Germany, France, Belgium and Romania have applied for derogations to mandate e-invoicing. With ViDA, Member States may impose domestic e-invoicing without needing EU approval, provided it applies only to established taxpayers.
Buyer e-invoice acceptance eliminated: The current EU VAT Directive states that the use of e-invoices is subject to buyer acceptance. Under ViDA, Member States that have introduced mandatory domestic e-invoicing will no longer require buyer consent.
ViDA changes effective from 1 July 2030
Redefinition of electronic invoicing
ViDA redefines electronic invoices. Under the proposal, electronic invoices are those issued, transmitted and received in a structured electronic format that allows its automated processing. This means that non-structured formats, such as pure PDFs or JPEG images, will no longer qualify as an e-invoice. Hybrid formats, such as ZUGFeRD and Factur-X, can remain due to their structured portion.
In principle, electronic invoices must comply with the European standard and the list of its syntaxes pursuant to Directive 2014/55/EU (the “EN” format). However, ViDA allows Member States to use other standards for domestic transactions upon meeting certain conditions.
From 2030, B2B e-invoices compliant with the European standard will be the default and no longer requiring buyer acceptance. However, if a Member State opts for a different mandatory domestic standard, they may either waive or require buyer acceptance for e-invoices using the European standard.
Digital Reporting Requirements (DRRs) for cross-border transactions
One of the most impactful updates in ViDA is the requirement for near-real-time digital reporting of cross-border transaction data.
Starting in 2030, taxpayers engaging in cross-border transactions within the EU must report invoice data electronically following the EN format. Such DRR will be a condition for taxpayers to exempt VAT in a cross-border transaction or claim input VAT. Each Member State will provide electronic mechanisms for submitting this data.
With ViDA, cross-border e-invoices within the EU must be issued in up to 10 days after the chargeable event. In these cases, DRR must happen at the same time the e-invoice is issued or should have been issued.
Invoices issued by the recipient on behalf of the seller (known as self-billing) and the invoices related to intra-community acquisitions must be reported no later than five days after the invoice is issued or should have been issued or received, respectively.
As expected, DRRs may be carried out by the taxpayers themselves or outsourced to a third party on their behalf.
Digital Reporting Requirements for domestic transactions
ViDA grants Member States the option to mandate digital reporting for domestic B2B/B2C sales, purchase data, and self-supplies for VAT-registered taxpayers within their jurisdiction. Domestic reporting requirements must align with ViDA’s cross-border DRR standards, and Member States must permit submissions in the European standard format, although other interoperable formats may be allowed.
For Member States with domestic real-time reporting systems in place as of 1 January 2024, compliance with ViDA’s standards will be required by 2035. On the other hand, the proposal clarifies that other reporting obligations, such as SAF-T, can still exist. This alignment will ensure consistency across the EU in preparation for full ViDA implementation.
Member States have until 30 June 2030 to integrate ViDA’s e-invoicing and DRR provisions into their national legislation, making the Directive effective across the EU by 1 July 2030.
ViDA’s impact on businesses
The ViDA proposal represents a significant shift for businesses operating within the EU, promising both opportunities and challenges. By introducing DRRs, ViDA aims to replace obsolete requirements, reduce administrative burdens, improve accuracy, and combat VAT fraud.
The move towards structured e-invoicing and near-real-time digital reporting will require businesses to update their invoicing and reporting systems, driving digital transformation across sectors. While the transition may entail initial adjustments, it is expected to increase efficiency, create a level playing field, and facilitate smoother interoperability between companies using different systems.
The French tax administration has just announced structural changes to the 2026 French e-invoicing mandate that will discontinue the development of the free state-operated invoice exchange service. This decision will put increased pressure on taxpayers and software vendors to select a certified ‘PDP’ to fill the void created by this decision.
A complex scheme, years in the making
When France introduced mandatory business-to-business e-invoicing in its 2020 Finance Law, the tax administration conducted a broad comparative study of how other countries had implemented similar obligations. However, France adopted a unique approach, creating the complex ‘Y model,’ which combined elements from several countries’ systems. Like Italy for example, it included a central state-operated platform (the ‘PPF’) that businesses could use as a free, basic service for the exchange and reporting of e-invoices.
Division of labor between PDPs and the PPF in the original ‘Y-scheme’ design
In parallel with the PPF’s own ability to exchange e-invoices for French taxpayer, the French tax authority solicited candidate PDPs to perform the same function for more complex business use cases.
These organizations were registered, put through vigorous testing and some were pre-approved, pending final testing with the PPF. PDPs are designed to seamlessly exchange invoices with each other and are required to report these transactions to the PPF.
And as it turned out, many companies in the French market decided to use a PDP to organize the exchange of invoice data with trading partners in a way that fits their unique business circumstances. Other French businesses counted on the availability of the free-of-charge PDP services to be provided by PPF, rather than selecting a private PDP.
The overall architecture of data flows between the public and private entities involved in the French scheme led to unprecedented complexity in the technical specifications released by the public administration. It has been clear for some time that this complexity was putting strain of budgets and timelines for the technical development of the PPF by the French public administration.
How does the PPF’s scope change impact businesses that were relying on the free PFF?
The French tax administration (DG-FIP) announced on 15 October that while the development of the PPF will continue, its focus will shift to providing directory services for routing e-invoices, without offering PDP services.
As a result, many French businesses and software vendors now face the challenge of securing the services of a private PDP. Although the e-invoicing mandate’s go-live date on September 2026, initially applies only to the largest businesses, more than four million companies will have to rely on PDP-enabled accounting software to receive those transactions regardless of their size.
Take Action
Sovos was one of the first PDPs to be pre-authorized by the French tax authority and brings more than two decades of experience providing compliance technology for businesses in France. Sovos is uniquely positioned to meet the needs of companies that must now choose a reliable provider.
You may think complying with Peru’s VAT obligation is simple, but there is plenty to consider. Peru has several mandates at play for businesses, such as e-invoicing, and both time and effort are required to stay compliant.
Consider the need to stay on top of mandates as they evolve, and you will realise that your organisation needs to pay constant attention to what you do in the present and the future.
This page is the ideal place to stay on top of your tax obligations in the country.
Monthly
Between 7th-16th day of the month following the end of the tax period
VAT rates
18%
10%
0%
VAT rules in Peru
There are multiple tax-related mandates businesses operating in Peru need to be aware of, including:
Peru e-invoicing
Peru is deep into its electronic invoicing journey, with an e-invoicing mandate in place for all taxpayers. The activity is regulated by the Electronic Issuance System and includes more electronic documents than just electronic invoices.
There are multiple electronic issuance systems in Peru that help generate electronic payment receipts. These systems can be public, commercial or private.
The main SEE systems are:
SOL issuance system: Mainly for small taxpayers and independent professionals to produce electronic receipts
Issuance system from the taxpayer’s systems: Made according to the taxpayer’s measures and needs to issue electronic receipts.
SUNAT billing issuance system: For issuing electronic receipts
Electronic services operator issuance system: The process of validating the CPEs generated by the taxpayer’s issuance systems requires entities authorised by SUNAT to electronically verify CPEs to be considered issued
Sovos is an official Operator of Electronic Services in Peru, as well as an Electronic Services Provider (PSE). Find out more about our global e-invoicing compliance solution.
Requirements to register for VAT in Peru
Awareness is key when considering your VAT obligations in Peru. The country has no VAT threshold, meaning businesses must register having provided their first taxable supply.
It also requires non-resident organisations to register for VAT at the point they perform their first taxable activity.
Taxpayers in Peru must register for a ‘Registro Unico de Contribuyente’, a unique identification that covers VAT but also other taxes. The required documents include:
Form 2119
Evidence of incorporation
The company’s Public Registry documentation
Peru will enforce a new VAT rule from 1 December 2024. Non-resident providers of digital services will be required to register for VAT at 18% when providing digital services to consumers in Peru.
Invoicing requirements in Peru
Peru introduced e-invoicing in 2010, though it became compulsory in the country years later. Taxpayers must issue and receive electronic invoices, and meet certain requirements along the way:
Recipients must generate an acknowledge of receipt for received e-invoices
Electronic invoices must be issued for both B2B and B2G transactions
The invoices themselves have stringent rules – such as needing to be in UBL 2.1 format and archived for at least five years – and require information such as:
Invoice data and reference number
Supplier name, address, contact details, tax ID
Description of goods and/or services (quantity, price, unit of measure)
Failing to meet VAT obligations in Peru may lead to penalties.
For example, failing to declare taxable sales can result in a fine that amounts to 50% of the VAT amount that is due – plus monthly interest of 1.2%. There are other reasons in which a taxpayer may be penalised, so compliance is vital.
There are certain supplies in Peru that are eligible for withholding VAT, of 4%, 10% or 12%. Taxpayers are required to split the withheld VAT and remit it to a special account with the nation’s bank.
Yes, non-residents who have purchased and consumed goods or services subject to authorised VAT in Peru can file requests to recover VAT. It will be refunded at the time of the non-residents’ departure.
Businesses looking to register for VAT in Peru must submit specific documents through a local fiscal representative that is registered with the country’s tax authorities.
Registered businesses in Peru must obtain a unique tax identification number, known as ‘Registro Unico de Contribuyente’. This number is necessary for VAT but also applies to other taxes.
Peru dictates that VAT is due at the time of the goods or services having been supplied.
Solutions for VAT compliance in Peru
Compliance can be tough when considering there are multiple mandates that may apply, and that rules and regulations evolve over time. Ensuring you meet standards and are current on the state of play can feel like a full-time job.
This is where Sovos shines. We serve as the compliance partner for many organisations, staying on top of the tall task of compliance so they can focus on what truly matters: growing their business. Our one-of-a-kind solutions are matched by our expert team’s local and global tax knowledge, providing true confidence for a regulated world.
Speak to our experts today to start a new chapter in your compliance journey
From managing VAT compliance to familiarising yourself with the VAT registration timelines, Alex Smith, Senior Director of Consulting Services will detail the most critical compliance challenges for companies expanding internationally.
Join Steve Sprague, Chief Product & Strategy Officer at Sovos, for an insightful discussion on how SAP customers can navigate the shift toward SAP’s Clean Core and ensure their tax compliance processes are future-ready. As governments worldwide accelerate the move toward digital tax reporting and real-time compliance mandates, businesses face new challenges in staying compliant while managing complex ERP systems.
In Italy, the insurance premium tax (IPT) code (which is being revised as of the date of this blog’s publication) and various other laws and regulations include provisions for taxes/contributions on motor hull and motor liability insurance policies.
This article covers all you need to know about this specific indirect tax in the country.
Which taxes are payable concerning motor insurance policies in Italy?
In Italy, there are four types of charges payable on motor insurance policies:
Insurance Premium Tax (IPT/RCA)
Contributions to the Solidarity for Victims of Extorsion and Usury (CONSAP)
Contributions to the Emergency Fund (EMER)
Contributions to the Road Accident Victims` Fund (RAVF)
How are the taxes calculated for motor insurance policies in Italy?
Whilst motor insurance policies can include various coverages as add-ons, this blog’s main focus is on motor hull and motor liability.
Motor Hull (Class 3)
Calculating taxes on land vehicles, i.e., motor hulls (Class 3), is simple. There is only IPT at 12.5% and CONSAP at 1%.
The taxable premium is the basis of these taxes. Both taxes are declared in the annual IPT return and payable monthly.
Motor Liability (Class 10)
The taxation of insurance policies against civil liability arising from the circulation of motor vehicles is more complex.
The IPT rate (so called Responsabilità Civile Auto or RCA tax) is determined on a provincial level. Legislative Decree 6 May 2011, No. 68 quotes that the rate of the RCA tax is equal to 12.5%. However, this can be increased or decreased by the province or metropolitan city by a maximum of 3.5%. That is why RCA tax rates are sometimes referred to as a tax with a rate ranging from 9-16%.
In Italy, there are 20 regions, each with one or more autonomous provinces or cities. To complicate matters further, the province or city can modify the tax rates within the tax year.
CONSAP does not apply on motor liability policies, however EMER is at a rate of 10.5% with an additional 2.5% required for RAVF.
RCA and EMER are declared in the annual IPT return, and payments are due monthly.
Although RAVF is also declared annually, the declaration process differs, and there is also a prepayment obligation. The actual amount of RAVF depends on the management fee set annually by the Italian insurance supervisory body (IVASS) – the percentage of which is published during November for the next year.
As previously stated, IPT/RCA regulations are undergoing major renewal (during 2024). The legislation governing the tax provisions on private insurance and life annuities (Law 29 October 1961, No. 1216) is part of the Italian Government`s tax reform initiatives.
According to the available draft legislation, the IPT law will be divided into three parts:
Minor taxes (technical aspects of this tax)
Assessment rules (procedure rules)
Penalty regulations
The government extended the deadline for enactment of the new regulation to the end of 2025.
What vehicles are exempt from tax in Italy?
There are not many exemptions available for IPT/RCA tax, nor for CONSAP, EMER and RAVF. However, cars registered in Italy to NATO Allied Force benefit from an exemption from IPT/RCA.
Global Compliance for Continuous Transaction Controls
Sovos Compliance Network is complete, continuous and connected. We process over 6 billion compliant invoices per year through our Compliance Network, more than 60 times other industry providers.
A core component of our Indirect Tax Suite, Sovos Compliance Network helps you:
Effortlessly map indirect tax compliance requirements with suppliers, buyers and consumers
Ensure your transactional documents adhere to the latest local regulations
Connect seamlessly with the right government agencies and certified platforms
Distribute invoices to trading partners where required
Build the Sovos Compliance Network into every transaction
The solution provides:
B2B & B2G Transaction Compliance
The world’s first complete solution for e-invoicing compliance, including clearance, CTC and global post-audit models.
Prove integrity and authenticity with universal, compliant archiving, including compliance maps, preservation sets, timestamps and signing and validation services.
“Compliance is now inside the transaction, elevating its importance and driving businesses to look beyond just meeting a minimum threshold. Now, the goal is a global view of compliance with a single source of data that allows them to generate actionable business intelligence”
Kevin Permenter, Research Director IDC
Sovos Compliance Network
Global Coverage
Post Audit and CTC e-invoicing in 65+ countries.
Future-Proof
Comply today and enjoy the peace of mind that scalable solutions are built-in for tomorrow.
Always-on
Ensure invoices continue to flow so your business and its supply chains run smoothly.
Automated
Save time, eliminate labor-intensive manual updates and enhance accuracy.
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Minimize the need for ad hoc IT involvement and investment in compliance updates.
Cost Efficient
Mitigate penalties and reduce your total cost of compliance by centralizing CTC compliance in one place.
Embedded in the Business Process Platforms You Use Today
Looking for more information on Compliance Network?
Tax authorities across Eastern Europe continue to move ahead with SAF-T adoption, with upcoming changes impacting VAT compliance requirements for businesses operating in the region.
In this exclusive webinar, you’ll get in-depth insights on:
– Romania’s SAF-T expansion: The tax authorities will expand the scope of businesses impacted by this requirement to non-established companies from January 2025
– Bulgaria’s SAF-T Introduction (2025): Learn about Bulgaria’s planned adoption of the SAF-T framework and what it means for businesses operating in the region
– Poland’s Extended SAF-T Reporting: Discover how Poland is expanding its SAF-T filing requirements and how this may affect VAT compliance and audits
Join our expert, Clementine Mayor, VAT Consultant as she unpacks the latest developments in VAT reporting across Eastern Europe. Don’t miss this opportunity to understand how these changes will shape the future of VAT audits and prepare your business for compliance.
