Excessive VAT Charged with Fixed Penalty for Each Case: Deduction Tied to Actual Tax Due

• Article 6, paragraph 6 of DLgs. 471/97 imposes a fixed penalty of 250 to 10,000 euros for the buyer/contractor who deducts more VAT than actually due.
• The penalty applies when the counterparty mistakenly charges a higher VAT rate or applies VAT for exempt, non-taxable, or excluded transactions.
• The purpose of the penalty was to prevent the buyer from facing multiple penalties for incorrect VAT deduction.
• The jurisprudence has interpreted the law differently, stating that the penalty does not apply to exempt/non-taxable/excluded transactions.
• The proposed reform of the penalty system aims to clarify and update the penalties for incorrect VAT deductions.

Source: eutekne.info

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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