Italian VAT Liquidation of 18 February 2019
When thinking of the issues experienced during the first month regarding the issuing and receiving of the e-Invoices due to the technical problems, we would like you to pay attention to comply with the first settlement period of 2019 and complete the registering invoices for January 2019.
According to Article 10 of Decree-Law No.119/2018, all invoices issued and received with the date of January 2019 must be registered with the VAT settlement.
Below is the illustration of the deadlines till June 2019 determined by the Decree-Law No119/2018.
January e-Invoice as an example;
- issued & registered by February 15th = no penalty
- issued & registered by March 15th = 20% penalty of 90% VAT = 18% VAT penalty
- issued & registered after March 15th = 90% VAT penalty
provided that the January’s VAT is paid by February 16th. Otherwise,
- there is also the penalty for failure to pay off the VAT = 30% VAT penalty
Until June 30th, 2019
(extensible to September 30th, 2019 for the monthly taxpayers)
- The Immediate Invoice must be issued and sent to SDI by the date of the operation (delivery or shipment). No penalties will be applied if the invoice is issued and sent within the VAT settlement deadline. Instead, reduced penalties of 80% will be applied if the e-Invoice is issued and sent by the end of the Vat payment of the following month.
- The Deferred Invoice must be issued by the 15th of the month following the operation date. The same moratorium/reduction of sanctions is valid until 9/30/2019.
From July 1st, 2019:
- The Immediate Invoice can be issued within 10 days from the date of the operation (delivery or shipment). In this case, the e-Invoice must always show the date of execution of the transaction (in addition to the issue date = date of sending to the SDI).
- The Deferred Invoice must always be issued by the 15th of the month following the operation date. The additional 10 days are not applicable in this case.
Attention must be paid to the fact that possible errors can determine omitted/lacking tax payment.
When sending is made close to the last day, transmission can be made later than the VAT settlement date, when thinking of the SDI’s SLA time of transmission for 5 days. In this case, it is necessary to take into consideration the tax due, even if the invoices are transmitted after the settlement date.
Although there is a request from CNDCEC (the National Chartered Accountants and Accountancy Experts Council) for an extension of the current moratorium for a late transmission without a fine, it is not yet approved by Agenzia Delle Entrate and MOF. (Source: Telefisco)
Therefore, we strongly recommend taxpayers to be ready for the VAT settlement date.