What is the VAT ceiling (plafond) and how does the declaration of intent work?

The VAT ceiling (plafond) is the maximum amount within which a habitual exporter can purchase goods and services without Italian VAT, by issuing a declaration of intent to their supplier. Habitual exporter status is acquired when exports (and similar operations) of the previous year or last 12 months exceed 10% of turnover. Two calculation methods exist: 1) Fixed plafond: based on previous calendar year operations; 2) Rolling plafond: recalculated monthly over the last 12 months. The declaration must be electronically transmitted to the Revenue Agency before the transaction. Improper use carries penalties of 100-200% of unpaid VAT.

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