Facilitated definition of formal irregularities

Budget Law 2023 introduced the possibility of regularizing infractions, irregularities and non-compliance with obligations or formalities committed since the year 2019 until October 31^st 2022, for which the Tax Office (Agenzia delle Entrate) is competent to impose the relevant administrative penalties. We are talking about non-compliances that are not relevant on the determination of the tax base, settlement and payment of VAT, IRAP, IRES, income taxes and tax credits.

Main violations affected

These are generally those irregularities and omissions for which penalties are imposed within minimum and maximum limits or in a fixed amount.

The main involved formal violations – if these are not relevant on the determination of the tax paid – are:

• violation of the obligations inherent in the documentation and registration of taxable transactions for VAT purposes, as well as non-taxable, exempt or non-taxable transactions subject to VAT (including electronic invoices sent to the SDI in late, but correctly included in the relevant VAT payment);
• omitted or irregular submission of quarterly VAT liquidations;
• omitted, irregular or incomplete submission of Intrastat lists;
• irregular keeping and retention of bookkeeping;
• failure to return or incomplete or untruthful return of questionnaires sent by tax offices or by the Tax Police (Guardia di Finanza);
• violation of the tax accrual principle;
• deduction of VAT applied in excess of the amount due to a rate error and, in any case, paid by the transferor or supplier;
• irregular application of the provisions concerning reverse charge;
• failure to exercise the options in the annual return, provided that there has been a conclusive behaviour in accordance with the chosen accounting or tax regime;
• failure to register in the Vies, the file in which one must be included in order to carry out intra-Community transactions.

How to regularize

The years that can be covered are from 2019 to October 31^st 2022.

For the regularization of formal violations, 200 euros must be paid for each tax period to which they relate. The payment can be made in one lump sum by October 31^st 2023, or in two equal instalments due on October 31^st 2023, and March 31^st 2024, respectively.

In addition, to perfect the procedure, it is also necessary to remove the irregularities, infractions or omissions by March 31^st 2024.

If for a “justified reason” all formal violations of the tax periods subject to regularization are not removed, the regularization will take effect if the removal takes place within the period of not less than 30 days specified by the Tax Office.

Finally, removal should not be carried out when it is not possible or necessary: this is the case, for example, in the case of misapplication of the reverse charge mechanism that, however, did not result in non-payment of tax.

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