Termination of VAT and prohibition of compensation in F24

THE'article 2 D.L. 124/2019 inserts three new paragraphs (2-quater, 2-d and 2-e)Article 17 of Legislative Decree 241/1997 in the field of credit compensation; these provisions establish the exclusion of recipients of VAT termination measures, or of exclusion from the database of the subjects who carry out intra-community operations, the possibility of availing of credit compensation.

The article in question states that, notwithstanding the general provision that the tax obligation can also be extinguished by compensation (Article 8 of the tax payer's statute), taxpayers who are the recipients of a provision for the termination of the VAT number are denied the right to avail themselves of them (starting from the date of notification) of compensation for tax credits.

Please note that with the request of attribution of the VAT number the tax payer is subject to automated feedback, aimed at identifying risk elements related to the release, which can lead to access to the place where the activity is performed. Tax Offices are called to verify the completeness and accuracy of the data provided by these subjects for their identification for the purposes of VAT (Article 35, paragraph 15-BIS, D.P.R. 633/1972).

Therefore, the Revenue Agency carries out vis-a-vis VAT number holders feedback and controls, formal and substantive, on the accuracy and completeness of the data applying targeted risk assessment criteria, mainly, to identify subjects lacking the subjective and / or objective requirements of VAT.

To that end the Agency evaluates a priori (provision of 12 June 2017 of the Director of the Revenue Agency):

• the risk elements attributable to the owner of the sole proprietorship or legal representative, to the administrators and ai members of the legal entity owner of the VAT number;
• the risk elements relating to typology and at way of carrying out the activity operational, financial, management, as well as auxiliary on the part of the owner of the VAT number;
• the risk elements relating to the tax position of the subject in charge of the VAT number, with particular reference to omissions and inconsistencies in the fulfillment of payment obligations or declarative;
• the risk elements relating to links with individuals directly and / or indirectly involved in evasive or fraudulent phenomena.

In the event that, from the controls in question, the lack of the subjective and / or objective requisites established by the D.P.R. 633/1972, the Office notifies the tax payer of a provision for the termination of the VAT number, unduly requested or maintained, with effect from the date of registration in the Tax Registry of the notification of the provision.

The tax decree (article 2) states that these subjects they will not be able to use the credits in compensation in the F24 model, regardless of their type and amount is even if they have not accrued with reference to the activity carried out with the VAT subject of the provision. This exclusion remains in effect until the circumstances that led to the termination of the VAT number remain.

In the report accompanying the decree in question it is pointed out that i the aforementioned credits may only be the object of a request for reimbursement (Article 38 D.P.R. 602/1973 is Article 30 D.P.R. 633/1972), or be reported as a previous surplus in the subsequent declaration.

The new paragraph 2-d instead, it provides that also the taxable persons who they carry out intra-community transactions to which the exclusion provision has been notified of the VAT number from the Vies database they cannot avail themselves, starting from the date of notification, of compensation for VAT credits.

Recall that the aforementioned Measure of 12 June 2017 of the Agency fixes, among others, also the criteria and methods for the exclusion of the VAT number from the database of subjects who carry out intra-community transactions, in the event that the controls show that the subject, although in possession of the subjective and objective requirements for VAT purposes, has knowingly carried out intra-community operations in a context of VAT fraud. The office, assessed the severity of the behavior, can he notify an operator exclusion order from the Vies database, invalidating the VAT number in the electronic system referred to inArticle 17 Regulation (EU) 904/2010.

In the case of use in compensation of credits in violation of the described provisions, the F24 model is discarded (paragraph 2-e) with a specific justified receipt (provision of 28 August 2018 of the Director of the Revenue Agency); following the verifications carried out, the Revenue Agency communicates the difference to the tax payer who sent the proxy of payment.

Then, all payments and compensations contained in the discarded F24 model are considered not executed.

To learn more about issues related to the article we recommend the following course: