Italy’s Revenue Agency has issued implementation rules for an automated VAT settlement procedure allowing authorities to calculate tax liabilities for taxpayers that fail to file annual VAT returns, using electronic invoices, payment records, and periodic VAT data already held by the Administration.
Italy’s Revenue Agency has published implementation rules for a new automatic VAT settlement process introduced by the 2026 Budget Law.
The provision, signed on 28 August 2026, details how authorities can determine amounts owed when taxpayers fail to file their annual VAT returns. The system draws on data already held by the Administration—electronic invoices, payment records, and periodic VAT communications—to calculate the tax liability.
Automated calculation and notification process
Under the amended Article 54-bis.1 of Presidential Decree no. 633/1972 (the VAT Decree), the Revenue Agency can now settle VAT debts using electronic information sources without waiting for a filed return.
The tax due is computed as the difference between output VAT and input VAT, using data from issued and received invoices, electronic payments, and periodic settlement communications. Any tax payments already made by the taxpayer are deducted from this sum.
The Agency must notify the taxpayer of the settlement via certified email through the national Ini-Pec registry or registered mail if email delivery fails.
Notification also makes available the supporting data used in the calculation—accessible through the Tax Drawer portal. The Authority can complete settlement proceedings until 31 December of the seventh year following the year in which the return should have been filed.
Taxpayer response and recalculation
Once notified, the taxpayer has 60 days to submit corrections or missing data for recalculation. The penalty for filing failure applies under Article 5, paragraph 1, of Legislative Decree no. 471/1997. Interest accrues at 4% per annum.
For entities with turnover, revenues, or fees of at least EUR 100 million, regional directorates handle jurisdiction; provincial offices manage smaller taxpayers.
Assistance is available through the provincial Revenue Agency office covering the taxpayer’s tax domicile. If the taxpayer provides additional information triggering a recalculation, the 60-day deadline restarts upon receipt of the revised notification.
Avoiding tax roll registration and payment terms
Payment made within 60 days of notification prevents registration on the tax roll and reduces the penalty by one-third. Interest drops to 3.5% annually under this expedited settlement option.
The F24 form is required for payment; no offsetting against other credits is permitted. The Revenue Agency will issue a resolution establishing the specific tax codes for remitting the settlement amounts.
