- The Italian tax authorities clarified that the exemption from providing a guarantee under Article 38-bis of the VAT Decree requires verification of two years of business activity at the time of the annual VAT return submission, not at the time of intragroup offsets.
- A supplementary VAT return with a compliance certificate can be submitted to obtain exemption from the guarantee, even after the ordinary deadline, provided no tax inspections are ongoing. Penalties for late submissions vary depending on timing, with formal penalties for delays within 90 days and proportional penalties beyond that.
- Certification of compliance with the conditions for the exemption must be indicated using specific flags in the VAT declaration, and supplementary returns can also include previously omitted declarations, although non-EU entities must provide additional documentation for guarantee exemption.
Source PwC
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