Michaela Merz

Italy – new VAT obligations in 2017 – fight against tax evasion

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PwC_fl_30mmh_cStarting from 2017, new quarterly communications of data of invoices issued and received and VAT balances will be mandatory.

Articles 4 and 5 of Law Decree dated October 22, 2016, no. 193 has introduced important changes in relation to VAT in order to strengthen the fight against evasion.



The Decree, published on the Official Gazette no. 249 dated October 24, 2016 and entered into force in the same day, will be converted into law (and possibly amended) by the Italian Parliament within sixty days from the date of its publication.

VAT taxable persons, instead of the submission of the so-called “comunicazione polivalente”, will have to submit to the tax authorities, on a quarterly basis, a detailed list of the invoices issued and received and the communication of periodic VAT balances.

In substance, art. 21 of the Law Decree no. 78/2010 has been rewritten and now is entitled “Comunicazione dei dati delle fatturee messee ricevute”. The new version of the above-mentioned article establishes the obligation for taxable persons to communicate on a quarterly basis to the tax authorities the data of all the invoices issued during the relevant quarter and all the invoices received and registered in the VAT ledgers, including customs bills of import, as well as the related credit notes.

The law states that the communication must be transmitted electronically to the tax authorities within the last day of the second month following each quarter. In relation to the transmission of the last quarter of the year, it is explicitly provided that the communication must be submitted within the last day of February.

The data must be sent in analytical form through a process established by a further act of the tax authorities, including at least the following items:

  • The identification data of the parties involved in the transaction;
  • Date and number of the invoice;
  • The taxable basis, the VAT rate applied and the related VAT;
  • The type of Transaction.

The communication of the data of invoices issued and received replaces the obligation to store the electronic invoices and documents submitted through the Interchange System and stored by the tax authorities (see art. 4, paragraph 3, of the Decree). Probably, the fulfilment at hand will be aimed to encourage the adoption of electronic invoicing process between “B2B taxable persons”, whose electronic invoices will be transmitted through the Interchange System in accordance with the provisions of the recent Legislative Decree no. 127/2015.

Moreover, the Decree introduces the new article 21-bis entitled “Comunicazioni dei dati delle liquidazioni periodiche I.V.A.” in the Law Decree no. 78/2010. This article provides for the obligation to submit, with the same quarterly periodicity and the same deadline of the above-mentioned communication, the summary of the periodic VAT balances accounting data (also in case the VAT balances results in a credit balance). The operative procedure will be defined by a further act of the tax authorities.

Having received the data through the above mentioned communications, the tax authorities will evaluate the consistency of the data reported by the taxpayer with the tax payments carried out.
In order to make more effective both the communications, the legislature has also intervened in relation to penalties by introducing paragraph 2-bis and 2-ter in the art. 11, of Legislative Decree no. 471/1997. In this respect, it has been provided for a penalty of 25 euro for omitted or erroneous communication of the data of each invoice, up to a maximum of 25,000 euro. It is not provided the possibility to apply for the so-called “cumulogiuridico” according to art. 12 of Legislative Decree no. 472/1997. Moreover, it is provided for a penalty from 5,000 to 50,000 euro for omitted, incomplete or inaccurate communication of periodic VAT settlements.

For the necessary technological upgrade of ERP systems, it is recognized a one-off tax credit of 100 euro, to be used by offsetting it with other taxes from 2018, for the subjects who have account in the previous year a turnover not exceeding 50,000 euro. An additional tax credit of 50 euro is granted to those taxpayers, who send invoice data in the way prescribed by the art. 21 of Law Decree no. 78/2010, as well as, where applicable, who exercised the option provided for in art. 2, paragraph 1, of Legislative Decree no. 127/2015 (i.e. the “electronic communication of the daily considerations”). These tax credits are neither relevant for income tax purposes nor for the value of production for the regional tax purposes.

Starting from January 1st 2017, as a result of the new requirements, the following fulfilment’s have been deleted:

  • INTRASTAT related to the purchases of goods and INTRASTAT related to the acquisitions of services (i.e. ModelloINTRA-2);
  • Communications of the data of the lease agreements entered into by leasing companies according to art. 7, paragraph 12, Presidential Decree no. 605/73.

Moreover, with effect from the year 2017, it is cancelled the communication of the transactions carried out towards business operators established in black list countries, according to art. 1, Law Decree no. 40/2010.
The Decree provides also the postponement until April 30 of the obligation of submission of the annual VAT return with reference to 2017 and subsequent years, while there are no changes for VAT return in relation to 2016, whose deadline remains February 28, 2017.

This is a short overview of the outlook. For further information, please contact Luca Lavazza



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