Skip to content Late VAT return: when it is still valid and what the reduced penalties are
Non-residents directly registered for VAT purposes in Italy are subject to the same reporting obligations as domestic taxable persons. Consequently, they too were required to submit their annual VAT return for the 2025 tax period by 30 April 2026. However, the legislation allows for the late submission to be rectified within 90 days of the standard deadline.
Under Article 2 of Presidential Decree No. 322/1998, returns submitted within 90 days of the deadline are considered late but fully valid. For the 2026 VAT return, the final deadline to benefit from this rectification is 29 July 2026.
Submission by that date allows you to:
- maintain the validity of the return for tax purposes;
- retain any VAT credit arising from the return, subject to any obligation to obtain a certificate of compliance as required by law;
- prevent the return from being treated as omitted.
The breach can be rectified through voluntary disclosure, which allows for a significant reduction in penalties: the standard penalty for failure to file a return is 120 per cent of the tax due (with a minimum of 250 euros), but by submitting the return within 90 days, the penalty for late filing can be reduced to 25 euros (one-tenth of the minimum) through voluntary disclosure; if the return shows that VAT is due, any outstanding payments must also be settled by paying the tax, interest and the relevant reduced penalty
Once the 90-day period has expired, the return is considered to have been definitively omitted. In this case, it is no longer possible to benefit from the provisions for late filing via voluntary disclosure.
However, if it is nevertheless submitted within the limitation period for the assessment and before the taxpayer has been formally notified of any inspections, audits or other administrative assessment activities, the reduced penalty of 75 per cent of the tax due applies; otherwise, the standard penalty of 120 per cent remains applicable.
Supplementary return: how to correct errors and omissions after submission
If a non-resident entity directly identified in Italy has already submitted Form IVA 2026 but receives a compliance notice from the Italian Revenue Agency, it is necessary to check for any errors or omissions that may require the submission of a supplementary return.
Compliance notices issued by the Italian Revenue Agency may also highlight errors, inconsistencies or omissions contained in a return that has already been submitted, following automated cross-checks between electronic invoices and payments.
The most common errors include:
- failure to complete Section VE;
- discrepancies between the figures declared (turnover and supplies) and the electronic invoices;
- omission of Section VJ for reverse-charge transactions;
- errors in identifying supply or input transactions.
Where there are errors in the return, the taxpayer must submit a supplementary return that is correct in every respect (by ticking the ‘Supplementary Return’ box on the cover page with code ‘2’ to indicate the link to the compliance letter), whilst at the same time paying the additional tax, interest and reduced penalties.
The penalties vary significantly depending on whether the 90-day deadline has passed:
– By 29 July 2026: if the original return was filed on time and is corrected within 90 days, the error may be rectified by means of a supplementary return and voluntary disclosure, with a fixed penalty reduced to €27.78 (one-ninth of the minimum of €250), in addition to the settlement of any additional VAT payments due.
– After 90 days: an amended return submitted after 90 days may still be rectified through voluntary disclosure, subject to the penalties applicable to an inaccurate return (70 per cent of the additional tax due, or 50 per cent in the cases provided for by current legislation), which may be reduced through voluntary disclosure.
Direct identification in Italy: how to avoid mistakes and correctly comply with the tax obligations of non-resident taxable persons
Non-resident taxable persons directly identified for VAT purposes in Italy must comply with the same core VAT obligations as domestic operators. To avoid disputes and reports from the Revenue Agency, it is essential to periodically check that transactions carried out in Italian territory are being correctly managed.
Attention should be paid to:
- the correct issuance and recording of output invoices;
- the correct recording of input invoices and reverse-charge transactions;
- the correct completion of periodic VAT settlements and the annual return;
- consistency between the data transmitted through electronic invoicing and the data reported in the VAT return.
Among the anomalies frequently found in recent compliance campaigns is also the failure to complete the VJ section for reverse-charge transactions. In these cases, it is important to check not only that the return has been correctly completed, but also that the tax has actually been paid and recorded in the accounts.
Since compliance communications result from automated checks based on electronic invoice and daily transaction data, they may sometimes flag anomalies that do not actually exist. Where special regimes, particular transactions or data-matching errors are involved, the taxpayer can provide clarifications and supporting documents to the Revenue Agency in the manner indicated in the letter received.
Finally, where payments must be made via Form F24 to regularise the taxpayer’s position, it is essential to indicate the notice code (codice atto) shown on the compliance letter, so that the payment made can be correctly linked to the anomaly reported.
How our firm can support non-resident taxable persons directly identified for VAT purposes in Italy
For non-resident businesses and professionals operating in Italy through direct identification for VAT purposes, complying with Italian tax obligations can be particularly complex.
Italian VAT legislation includes numerous specific rules on invoicing, the recording of transactions, reverse charge, periodic settlements, the annual return and communications with the Revenue Agency, which are often not immediately clear to foreign operators without an in-depth knowledge of the Italian tax system.
Our firm regularly assists foreign companies and economic operators directly identified for VAT purposes in Italy, providing comprehensive support in managing their tax obligations.
This assistance includes, among other matters, the preparation and filing of the annual VAT return, together with the related management of VAT refunds and credits.
Particular attention is paid to preventing the most common errors affecting foreign taxable persons, such as the incorrect application of reverse charge, incorrect completion of the return sections, inconsistencies between invoicing and the VAT return, or the handling of cross-border transactions. This helps avoid disputes and penalties, which in VAT matters can be very significant.
Where, however, a tax position needs to be regularised, our firm can provide concrete support in regularising omitted or late VAT returns, preparing supplementary returns, managing the voluntary correction (ravvedimento operoso) procedure, and assisting with compliance communications and audits from the Revenue Agency.