Italy's New VAT Measures Include Increased Penalties for Violations

Italy recently introduced a series of new value-added tax measures, including some that increase penalties for violations, KPMG said in an Oct. 30 post. Among several changes, the measures increase penalties for criminal violations of VAT rules, including filing false VAT returns, failing to file a return, fraudulent reporting on invoices and “concealment or destruction” of documents, the post said. The increased penalties include longer prison sentences.

The measures also revised rules related to the removal of fuel products from VAT warehouses, prohibit “frequent exporters” from buying fuel products without VAT, broadened the scope of the “reverse-charge mechanism to supplies of services provided under contracts and mainly performed at the premises of the customer” and moved VAT ledgers to the tax authority’s website, KPMG said.