Updated Tax Penalty Regime in Italy From 1 September 2024
Starting on September 1, 2024, Italy will introduce a revised tax penalty system aimed at aligning with EU standards and creating fairer sanctions for tax-related violations.
These updates come after the release of Decree n. 87/2024 on June 28, 2024, and apply to any infractions committed after that date. Some penalties have been reduced, while new ones have been introduced for specific cases.
Key changes include:
- Sellers face a 70% penalty on incorrect VAT documentation, down from 90%, with a new minimum of €300.
- Invoicing violations for exempt or non-taxable amounts have penalties reduced to 5%, with a minimum of €300.
- New penalties apply to intra-EU goods transportation not verified within 90 days, with a 50% VAT penalty.
- Incorrect or omitted invoices within 90 days are now subject to a 70% penalty.
Penalties for reverse charge violations range from €500 to €10,000, lower than the previous maximum of €20,000.
E-invoicing situation in Italy
Italy has mandated e-invoicing for both B2B and B2G transactions since January 2019, using the Sistema di Interscambio (SDI) platform. Businesses must send invoices in the FatturaPA format, ensuring compliance with government standards. E-invoicing became mandatory for micro-enterprises with revenues under EUR 25,000 starting January 1, 2024. Cross-border e-invoicing also became compulsory in July 2022, along with penalties for non-compliance. Digital signatures and specific archiving protocols are required to guarantee invoice integrity.
