FAQ on new VAT return available on Italian authorities’ website

Italian VAT return changes

These are several questions and answers regarding the preparation of quarterly VAT returns due in Italy as from 2017.

Summary of the most relevant doubts

We are providing below a summary of the most relevant FAQ answered by the authorities:

• The obligation to carry forward in Q1 the VAT credit from previous year: Taxpayers have the option to carry forward their VAT credit from the previous year by reporting this amount in box VP9 of the first quarter VAT return. In case the company requests a VAT refund using form F24, they will not be able to carry forward this amount.

In case the taxpayer wants to carry forward a VAT credit throughout the year for a period different from December or fourth quarter, box VP8 must be used.

• How to report IC-acquisitions and other reverse charge purchases: The purchaser shall not include the net amount of reverse charge purchases in box VP2 ”Totale operazioni attive (al netto dell’IVA)”. However, VAT amount of the purchase needs to be included in box VP5 as VAT deductible and box VP4 as  VAT payable.
• The 'split payments' regime and reporting of the NET and VAT amounts: Only the supplier is required to report all amounts on sales under the split VAT payment mechanism. Customers receiving split payment should only include VAT amount in box VP4 on purchases of goods and services. These customers are usually public entities or public authorities.
• The obligation to submit nil VAT returns: If the taxpayer does not have activities during a reporting period, it is NOT mandatory to submit a nil quarterly VAT return. However, in case VAT credits are carried forward from previous periods, this return is still due.
• Corrective VAT returns: The system accepts any corrections into previously submitted quarterly VAT returns. Even when these corrections are made after the deadline. The latest VAT return replaces the one previously submitted.

The obligation to submit Quarterly VAT returns was first introduced in 2017. Previously, an annual VAT return, annual Spesometro and monthly or quarterly VAT payments were due. In addition to new quarterly VAT returns, VAT payments on a monthly or quarterly basis still need to be made before the actual return is submitted. For the more information on the frequency of filing and payments check our Italian manual.

All FAQ on Italian VAT return changes published by authorities can be accessed via the website of the Italian tax authorities.