VATupdate

Tax Decree linked to 2020 Budget Law (DL n. 124/2019)

On Oct 26, the Official Gazette published the Law Decree on the 2020 Budget Law (DL n. 124/2019)

Changes include:

Extension of the Reverse Charge Mechanism regime (art. 4, par.3)

Upon EU Commission authorization, the reverse charge mechanism is extended to all contracts, subcontracts or equivalent ones where there is a predominant usage of labour in the premises of the Principal, with usage of instrumental equipment owned or attributable to the Principal, excluding entities under split payment regime (eg. Public Bodies) or when temporary agencies are involved.

VAT simplification (art. 16)

For domestic LE’s, on an experimental way, by joining data flowing by e-invoices and Esterometro, Tax Office will made available, in a reserved area of SdI, a draft prefilled version of the:

  1. Effective date: data from CY2020
  1. Input and Output VAT abaps
  2. Quarterly VAT communication (QVC)
  1. Effective date: data from CY2021
  1. Yearly VAT return (YVR)

Automatic audits on stamp tax on e-invoices (art.17)

Effective 27/10/19, for domestic LE’s, Tax Office will retrieve the data for quarterly stamp tax payment on e-invoices from SdI and will compare it with the payment done. In case of delayed, omitted or incomplete payment, automatic request for payment plus fine and interest will be issued to the taxable person.

Usage of e-invoicing data (art. 14)

Effective 27/10/19, Tax Police and Tax Office can view the full content of the file invoice in SdI (before just main tax data without line details unless formally the Taxable Persons adhered to a specific consultation service) and for 8 years (before only 2 years). This for an improved fight to VAT fraud and evasion.

Source Official Gazette

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