What happens in the event of errors, omissions and insufficient tax payments, including value added tax? What penalties are required? What is effective repentance and how does it work? Let’s see together.
In case you do not respect Limit scheduled for Pay VATis provided for Penalties For neglect or insufficient payment of tax.
However, it is possible to remedy the situation using active repentancethe institution provided by the Revenue Agency that allows the settlement of errors, omissions and insufficient payments of taxes, including value-added tax.
Let’s see together what are the fines for non-payment of VAT and how serious penance works.
Delay in paying VAT: fines
according toart. 13, Legislative Decree 471_1997in order toOmission or insufficient payment of VAT Punishment is equal to 30% of the amount you did not pay. It applies to all types of payments even if the outstanding amount is determined after evaluation.
If the violation relates to collateralized debtthe penalty for the first 15 days is equal to 2% for each day of delay.
If the omission relates to Pay the collective value-added tax Punishment is imposed on main company.
In case Errors were found during the official monitoring of the advertisement, If the fine is paid within 30 days of receiving the notification (or communication), it is reduced to 10% (the reduction is equal to 1/3 of 30%). while in the case of Errors found during evaluation – compliance, When the failure to pay and the penalty are reported with an attachment document, if the taxpayer makes the payment within 60 days of notification of the assessment, the penalty is reduced by 1/4.
Late Payment of VAT: How Serious Repentance Works
The active repentance It states that the settlement is made through F24 (or another specified form), their sum is calculated as:
Tax due + interest on arrears + reduced fine
The Interests Calculated on days of delay equivalent to 0.5% on an annual basis while Punishment It changes according to the days of delay.
In the case of active repentance, the sThe antiion is reduced and equals:
- 0.2% (calculated on the amount of unpaid VAT) for each day of delay, if payment is made within 14 days from the due date;
- 3% (calculated on the amount of unpaid VAT), if payment is made within 30 days;
- 1/9 of the minimum fine (i.e. 1/9 of €258), if payment is made within 90 days;
- 1/8 of the minimum (i.e. 1/8 of €258), if payment was made within the current year return filing deadline;
- 1/7 of the minimum (i.e. 1/7 of €258), if payment is made within the deadline for submitting the return for the following year.
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