All you Need to Know about Italian Annual VAT Returns

Companies registered for VAT purposes in Italy must submit an Annual VAT return. This is a recapitulative return for informative purposes, so usually there should not be any VAT payment due upon submission. This return is also known as dichiarazione annuale IVA. Instructions are published by the tax authorities and updated every year.

Quarterly VAT returns in Italy are quite simple and do not offer detail concerning the total amounts reported. The content extends the information submitted via the quarterly VAT returns, as it will be required to split the amounts based on the nature of transactions performed, the VAT rates, and also to include certain transactions that are generally excluded from the quarterly communication, e.g. certain exempt transactions.

What is the deadline for submission?

The annual VAT return 2023 must be submitted from 1 February to 30 April, 2024.

Generally, the deadline for submitting the Italian annual VAT returns is by the end of April of the following year. Find here the deadline confirmation for this year.

When is the annual VAT return not due?

Certain taxpayers might be exonerated from submitting the Italian annual VAT return. For example, when the taxpayers have only performed exempt transactions – according to article 10 of Presidential Decree no. 633/1972, the exemption does not apply in the case of performing intra-Community transactions. The complete list can be found under the following link.

Submission of annual VAT returns

The submission is always made via electronic means to Revenue Agency. This is mandatory also for non-established companies registered only for VAT purposes.

VAT Refunds and the Annual VAT Return in Italy

Generally, VAT refunds in Italy are requested via the annual VAT return.

Normally, taxpayers need to set up a bank guarantee in order to receive the VAT refund. However, under certain conditions, the bank guarantee requirement can be replaced by a certificate known as "visto di conformita", which confirms that VAT return and VAT ledgers (calculated during the year) reconcile with each other, it should also confirm that VAT ledgers reconcile with each issued invoice. Only an Italian certified chartered accountant can issue the "visto di conformita".

Before accepting the reimbursement of the VAT credit, the tax authorities may also request copies of invoices.

Some important notes about Italian annual VAT returns

• VAT payment change of frequency: the option of changing from quarterly to monthly VAT payments must be communicated in the first annual VAT return to be presented after the choice is made and takes effect from the year in which it is exercised and until revocation - unless the change of payment frequency is mandatory because the threshold on sales turnover was exceeded.
• Correcting previous reporting periods: annual VAT returns in Italy offer the possibility of correcting figures reported during the year in the quarterly VAT returns. This is made via the section or “Quadro” VH for “variazioni delle comunicazioni periodiche”. All amounts for the whole reporting year must be included – and not only those of the quarter you want to correct.
• VAT refunds and carry forward: VAT credits in Italy are normally requested via the annual VAT return submission. Quadro VX allows you to determine what do you want to do with the excess of input VAT resulting from the reporting year: either to carry it forward to next year, or to claim it back from the Italian tax authorities. It is also possible to request part of the VAT credit, and ask for the remaining to be carried forward to the next year.

You will find more information about Italian VAT compliance rules in our manual.