VAT compliance in Italy
Remedies against omissions and wrong VAT returns
How works co-operation with Revenue Agency in Italy
In Italy the definition "VAT Compliance" means the activity of the Revenue Agency of co-operation with taxpayers in order to facilitate their spontaneous payment of VAT through the sending of communications (by certified electronic mail or ordinary mail) of anomalies concerning:
- failure to submit the VAT sample for returns;
- presentation of the VAT sample filled only on the VA box.
Taxpayers can, alternatively:
- regularize the omissions and / or the mistakes made by payment through active repentance; or
- report any elements, facts and circumstances not known by the Revenue Agency.
The other control tools of the Revenue Agency are:
- automated and formal checks of VAT declarations;
- invitations to taxpayers to the contradictory and questionnaires;
- targeted controls and tax audits;
- financial investigations;
- tutoring activities for companies of significant size.
Since January 1st 2017, there is no more the single unified declaration which included VAT and Invoices Declarations, since then and the Revenue Agency can acquire more VAT information, in fact, VAT taxpayers have the duty to transmit by telematic means to the Revenue Agency, within the last day of the second month following each quarter:
- the data of all invoices issued, received and registered;
- customs declarations;
- the data of the concerning variations.
The data to be transmitted for each operation is:
- identification data of the subjects of the operation;
- date and number of invoice;
- tax base;
- applied rate;
- amount of tax;
- type of operation.
Since 2018, the maturity of VAT returns has become on quarterly basis, in fact, the submission of the communication must be made:
- within the last day of the second month following each quarter and
- within the last day of February of the following year in relation to the last quarter.
How to send files to the Revenue Agency
The transmission to the Revenue Agency of the two above mentioned communications provides a file for each subject involved in the communication and can be made using four different ways:
1) an application of co-operation system, by Internet, via HTTPS by TLS encrypted channel version 1.2;
2) a system of application cooperation through a public cooperation system (SPCoop);
3) an FTP-based data transmission system;
4) a telematic transmission system that can be accessed from the website Agenziaentrate.gov.it (the Revenue Agency website), by using Entratel or Fisconline credentials.
For the first 3 modalities is necessary to do the subscription for using the electronic signature, they are services on payment offered by accredited subjects and allow a massive sending of data.
Using Mode 4), it is necessary to attach the electronic seal of the Revenue Agency to the files to be sent, allowing the transmission of one file at a time.
In case of error on the invoice: the administrative penalty of € 2 applies for each wrong invoice, however within the maximum limit of € 1,000 for each quarter.
The fine is reduced to half, within the maximum limit of € 500 if:
- the transmission is made within 15 days after the expiry date, ie if,
- the correct transmission of the data is made within 15 days after the expiry date.