Annual VAT returns in Italy: what do you need to know
Annual VAT return in Italy is a recapitulative statement due by the end of April of the following year.
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.
Content extends information submitted via the quarterly VAT returns, as it will be required to split the nature of transactions performed, also per VAT rates, and transactions that are generally excluded from the quarterly communication must now be added – this is the case of certain exempt transactions.
What is the deadline for submission?
This year 2022, the annual VAT return 2021 can be submitted from 1 February to 2 May, 2022.
Generally, the deadline for submitting the Italian annual VAT returns is by the end of April of the following year. However, this year’s deadline falls on a weekend, so it is moved to the next working day, Monday 2 May.
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. 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.
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.
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Marosa can help you with your Italian VAT compliance obligations.