Italian annual VAT return update

Tue 17th Mar 2015

The Italian tax office (Agenzia delle Entrate) has issued earlier this month the latest version of the annual VAT return with support guidance notes. The 2014 year’s return should be submitted by the filing deadline of 30 September 2015.

There are no monthly or quarterly VAT returns in Italy. Instead, VAT due is paid over monthly and companies must maintain support Italian-compliance accounting records. Payments of net Italian VAT due should be paid by the 16th of the month following the period end.

For smaller enterprises, with a turnover below €700,000 per annum, it is possible to apply for quarterly Italian VAT reporting. However, there is a 1% interest charge payable with the VAT payment.

The Italian tax authorities may also ask for advance payments equal to 80% of the previous month’s VAT liability.