[January 9th, 2019] Tax Newsletter - Fiscal Decree 2019
The Law converting Legislative Decree no. 119 of October 23, 2018 ("Fiscal Decree") was published in the Official Gazette no. 293 of December 18, 2018. The main tax measures for companies are summarized below.
VAT provisions
Disapplication/reduction of penalties for late issuing of electronic invoices
For invoices to be issued in the first half of 2019:
Change of invoicing terms
As from July 1, 2019, the invoice may be issued within 10 days from when the transaction is carried out for VAT purposes, giving evidence in the document of the date on which the transfer of goods/services is carried out.
Entry in the register of issued invoices
Invoices issued must be recorded by the 15th day of the month following the month in which the transaction is carried out for VAT purposes and with reference to the same month.
Registration of purchases and right to deduct
The progressive numbering of purchase invoices is repealed.
The right to deduct in respect of purchase invoices received and recorded by the 15th day of the month following the month in which the transaction is carried out for VAT purposes may be exercised by the 16th day of each month.
Extension of Reverse charge
The reverse charge mechanism for the sale of mobile phones, tablet PCs, laptops and integrated circuit devices is extended until June 30, 2022.
Assessment and Litigation
Regularization of formal errors
Formal errors (which do not affect the determination of the taxable base for income tax, VAT and IRAP purposes or the payment of taxes) committed up to October 24, 2018 can be remedied by paying an amount of 200 euros for each fiscal year to which the violations relate.
The implementing rules will be defined by a measure of the Revenue Agency.
Settlement of the tax audit reports
The full content of the tax audit reports delivered or notified by October 24, 2018 can be accepted and settled.
A special declaration must be filed by May 31, 2019 to regularize the challenged violations, paying the relevant higher taxes by the same date and thus benefitting from the removal of the administrative penalties and interest.
This settlement does not include deeds relating to voluntary disclosure.
Extension of time limits for assessments
The Fiscal Decree provides for a 2 years extension of the ordinary assessment deadlines for tax audit reports related to the years up to 2015, which are subject to facilitated payment and have been delivered or notified by October 24, 2018.
Settlement of assessments
It is possible to accept and thus settle the full content of the notices of assessment or rectification, of the notices of liquidation and of the acts of recovery notified by October 24, 2018 - if not appealed but still appealable on the same date - by paying the higher taxes assessed and thus benefitting from the removal of penalties, interest and accessories (such as, for example, the costs of notification).
The payment (in full or in the first instalment) must be made by the deadline for filing the appeal (taking into account, where appropriate, the suspensory effect of any requests for tax agreement and IPEA, as well as the suspension period due to judicial vacations).
Settlement of pending tax litigations
It is possible to settle the tax litigations in which the Revenue Agency is a party, concerning tax measures, pending in every state and level of the proceedings, by submitting an appropriate application by May 31, 2019, provided that the first-instance claim was filed with the Tax Authorities by October 24, 2018 and, at the time of submission of the application for facilitated payment, the final judgement (i.e. having the force of “res iudicata”) has not yet been issued.
The settlement is finalized with the payment (in full or of the first instalment), again by May 31, 2019, of an amount equal to a percentage of taxes (between 5% and 100% depending on the status of the litigation), with removal of penalties and interest.
If the litigation concerns only penalties not related to the tax, the settlement is finalized with the payment of an amount equal to 15% or 40% of the penalties, depending on the status of the litigation.
Tax collection settlement procedure
It is possible to settle (also individually, within the scope of each deed) the loads deriving from debts listed in the register, executive assessments and debit notices entrusted to the Collection Agents between January 1, 2000 and December 31, 2017, by submitting a specific request by April 30, 2019, paying by July 31, 2019 (in full or in the first instalment) the taxes and interest due, as well as the collection fee, and thus benefitting from the removal of administrative penalties and default interest.
The following are excluded from the procedure: amounts due following the recovery of State aid declared incompatible with European Union law; credits deriving from decisions of the Court of Auditors; fines and pecuniary penalties due following criminal convictions; penalties other than those imposed for tax and/or contribution violations and/or relating to premiums due to social security institutions; administrative penalties for violations of the Highway Code (with the exception of interest).
Telematic Tax Litigation Proceeding
From July 7, 2019 the Telematic Tax Litigation Proceeding (until then optional) becomes mandatory. As a result, the paper-based notification and filing of procedural documents in relation to litigations pending as from that date has been completely abolished.
Precautionary measures in favour of the tax authority
The right to request the President of the Provincial Tax Court to authorise the registration of a mortgage or the preventive seizure of taxpayers' assets, following a report of ascertainment, a notice of assessment or penalties has been extended to the Provincial Commander of the Guardia di Finanza (Tax Police).
Other news
Tax ruling on new investments
For applications submitted from January 1, 2019, the threshold of investment in the territory of the State is reduced from 30 to 20 million euros.
VAT provisions
Disapplication/reduction of penalties for late issuing of electronic invoices
For invoices to be issued in the first half of 2019:
- no penalties will be applied if the invoice is issued in electronic format within the deadline of the relevant periodic VAT liquidation;
- 80% reduction in penalties is applied if the invoice is issued within the deadline for periodic liquidation of the following period.
Change of invoicing terms
As from July 1, 2019, the invoice may be issued within 10 days from when the transaction is carried out for VAT purposes, giving evidence in the document of the date on which the transfer of goods/services is carried out.
Entry in the register of issued invoices
Invoices issued must be recorded by the 15th day of the month following the month in which the transaction is carried out for VAT purposes and with reference to the same month.
Registration of purchases and right to deduct
The progressive numbering of purchase invoices is repealed.
The right to deduct in respect of purchase invoices received and recorded by the 15th day of the month following the month in which the transaction is carried out for VAT purposes may be exercised by the 16th day of each month.
Extension of Reverse charge
The reverse charge mechanism for the sale of mobile phones, tablet PCs, laptops and integrated circuit devices is extended until June 30, 2022.
Assessment and Litigation
Regularization of formal errors
Formal errors (which do not affect the determination of the taxable base for income tax, VAT and IRAP purposes or the payment of taxes) committed up to October 24, 2018 can be remedied by paying an amount of 200 euros for each fiscal year to which the violations relate.
The implementing rules will be defined by a measure of the Revenue Agency.
Settlement of the tax audit reports
The full content of the tax audit reports delivered or notified by October 24, 2018 can be accepted and settled.
A special declaration must be filed by May 31, 2019 to regularize the challenged violations, paying the relevant higher taxes by the same date and thus benefitting from the removal of the administrative penalties and interest.
This settlement does not include deeds relating to voluntary disclosure.
Extension of time limits for assessments
The Fiscal Decree provides for a 2 years extension of the ordinary assessment deadlines for tax audit reports related to the years up to 2015, which are subject to facilitated payment and have been delivered or notified by October 24, 2018.
Settlement of assessments
It is possible to accept and thus settle the full content of the notices of assessment or rectification, of the notices of liquidation and of the acts of recovery notified by October 24, 2018 - if not appealed but still appealable on the same date - by paying the higher taxes assessed and thus benefitting from the removal of penalties, interest and accessories (such as, for example, the costs of notification).
The payment (in full or in the first instalment) must be made by the deadline for filing the appeal (taking into account, where appropriate, the suspensory effect of any requests for tax agreement and IPEA, as well as the suspension period due to judicial vacations).
Settlement of pending tax litigations
It is possible to settle the tax litigations in which the Revenue Agency is a party, concerning tax measures, pending in every state and level of the proceedings, by submitting an appropriate application by May 31, 2019, provided that the first-instance claim was filed with the Tax Authorities by October 24, 2018 and, at the time of submission of the application for facilitated payment, the final judgement (i.e. having the force of “res iudicata”) has not yet been issued.
The settlement is finalized with the payment (in full or of the first instalment), again by May 31, 2019, of an amount equal to a percentage of taxes (between 5% and 100% depending on the status of the litigation), with removal of penalties and interest.
If the litigation concerns only penalties not related to the tax, the settlement is finalized with the payment of an amount equal to 15% or 40% of the penalties, depending on the status of the litigation.
Tax collection settlement procedure
It is possible to settle (also individually, within the scope of each deed) the loads deriving from debts listed in the register, executive assessments and debit notices entrusted to the Collection Agents between January 1, 2000 and December 31, 2017, by submitting a specific request by April 30, 2019, paying by July 31, 2019 (in full or in the first instalment) the taxes and interest due, as well as the collection fee, and thus benefitting from the removal of administrative penalties and default interest.
The following are excluded from the procedure: amounts due following the recovery of State aid declared incompatible with European Union law; credits deriving from decisions of the Court of Auditors; fines and pecuniary penalties due following criminal convictions; penalties other than those imposed for tax and/or contribution violations and/or relating to premiums due to social security institutions; administrative penalties for violations of the Highway Code (with the exception of interest).
Telematic Tax Litigation Proceeding
From July 7, 2019 the Telematic Tax Litigation Proceeding (until then optional) becomes mandatory. As a result, the paper-based notification and filing of procedural documents in relation to litigations pending as from that date has been completely abolished.
Precautionary measures in favour of the tax authority
The right to request the President of the Provincial Tax Court to authorise the registration of a mortgage or the preventive seizure of taxpayers' assets, following a report of ascertainment, a notice of assessment or penalties has been extended to the Provincial Commander of the Guardia di Finanza (Tax Police).
Other news
Tax ruling on new investments
For applications submitted from January 1, 2019, the threshold of investment in the territory of the State is reduced from 30 to 20 million euros.
