- Italy has introduced an automated VAT assessment regime for omitted annual VAT returns starting from January 2026.
- The tax authority can compute VAT due using existing digital data such as e-invoices, receipts, and periodic VAT reports, without a manual audit.
- The regime applies when a taxpayer misses the annual VAT filing deadline or files an incomplete return, and the assessment must be made by the end of the seventh following year.
- Taxpayers receive a notice with VAT, interest, and penalties and have 60 days to clarify or pay before collection starts.
- The standard penalty is 120% of VAT due, but prompt payment within 60 days reduces the penalty to one-third of that amount; the reform aims to speed up VAT recovery and improve compliance.
Source: meridianglobalservices.com
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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