- The Italian tax authorities have clarified how to rectify violations related to late VAT registration in Italy.
- These clarifications apply to any taxpayer who has failed to file an annual VAT return and have incorrectly invoiced sales transactions and related VAT liability.
- The authorities stated that in order to carry out the self-disclosure procedure, the taxable person should issue invoices subject to regularization, record them in the VAT books, report the transactions in periodic settlement data reports, submit the relevant annual VAT return, pay any VAT due plus interest and penalties for omissions and failures.
- The penalty for omitted VAT return can range from 120% to 240% of the VAT due.
- The penalty for failure to pay VAT is absorbed by the penalty for failure to file the annual VAT return.
- The tax authorities can also consider amounts paid during self-regularization and apply reductions and legal cumulation.
- The relationship between self-regularization and non-punishability of crimes is not commented on.
Source PwC
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