The Italian government has launched an ambitious new VAT collection program, under which the Revenue Agency will pre-fill VAT returns on behalf of taxpayers. This program aims to simplify the reporting and procedures of VAT documents and, at the same time, improve tax compliance. This is because pre-filled VAT forms could both simplify VAT collection for tax authorities and sharpen the ability of businesses to comply with tax duties.
How does it works - In short, the legislation provides that data collected from transactional information supplied from electronic invoices via SDI, cross-border transactions, as well as data gleaned on fees electronically, will be used by the Revenue Agency to pre-populate a VAT return to be later submitted by the taxpayer. For now, this program applies only to businesses, professionals and self-employed workers resident and established in Italy. Indeed, the pre-populated forms will be regarded as drafts, with taxpayers having eventually an opportunity to amend incorrect data.
The central role of the Revenue Agency in managing the new prepopulated VAT return - In detail, the Italian tax authorities, Agenzia delle Entrate, will create VAT ledgers and draft quarterly VAT returns, till to encompass also annual return, for Italian resident entities only. Particularly, for the preparation of these Vat reports, the Agency will be allow to use transactions and data processed through the SdI e-invoicing system, communications of cross-border transactions and daily online cash till reports and also the fiscal data present in the “Anagrafe Tributiaria” or tax register , such as, for example, those of the VAT return of the previous year and of the communications of the periodic payments of the previous quarters. However, businesses will be able to review and amend the fiscal returns before approval. While, ad regard to non-resident Italian VAT-registered businesses, they will still be obliged to complete and submit their VAT returns as currently. Furthermore, with regard to the possibility provided for the VAT operator to use pre-filled VAT documents through professional intermediaries, the latter must have acquired the authorization to use the services of electronic invoicing.
More automation, easier fulfillment of tax obligations - The start of the experimentation of the pre-filled Vat model and the related application methods will involve millions of taxpayers. It will mark a further step forward in the process of simplifying the tax system, centered on a renewed relationship between taxpayers and tax authorities, increasingly oriented towards dialogue and exchange, mutual and recognized reliability. A process that will see involved the Revenue Agency in providing a constant online assistance program to all VAT taxpayers, resident and established in Italy, using a special dedicated" area of the website of the Agency itself, in which the draft documents already partially pre-filled with the data of the transactions acquired with electronic invoices, with the communications of cross-border transactions and with the data of the payments acquired electronically will be available.
Stefano Latini