03

DGTAX Handbook

VAT Returns

Operational guide dedicated to VAT return fulfilments: calculation, preparation, and electronic filing in compliance with Italian fiscal deadlines.

HANDBOOK 03

VAT RETURNS

Preparation and submission to tax authorities

1. SERVICE DESCRIPTION

Our VAT Returns service covers the management of all periodic obligations related to Value Added Tax (VAT). This comprehensive offering includes the meticulous preparation, rigorous verification, and secure electronic submission of VAT declarations to the Italian Revenue Agency (“Agenzia delle Entrate”).

VAT is an indirect tax levied on the purchase and sale of goods and services. The accurate handling of VAT settlements and returns is essential for companies to meet their fiscal duties, thereby preventing penalties and errors.

Our firm is specialized in calculating periodic VAT settlements, accurately determining the tax payable or the credit due, preparing the necessary electronic forms, and ensuring timely submission within the legal deadlines.

This service guarantees full regulatory compliance, unparalleled accuracy in calculations, and complete traceability of all transactions.

2. ACTIVITIES

The service includes all necessary operations for accurate VAT management:

  • Collection and Verification of VAT Sales and Purchase Ledgers;
  • Calculation of Tax Payable and Tax Credit for each period;
  • Preparation of Monthly or Quarterly VAT Settlements (LIPE);
  • Compilation and Electronic Submission of Periodic VAT Communications;
  • Preparation and Filing of the Annual VAT Return;
  • Management of VAT Credits (Offsetting, Refunds, Transfers);
  • Deadline Monitoring and Digital Archiving of Submission Receipts;
  • Assistance during Audits or Requests for Clarification from the Italian Revenue Agency;

Thanks to automated processes and timely data review, DGTAX ensures reliable, compliant, and transparent management of all VAT obligations for its clients.

3. REQUIREMENTS AND DEADLINES

Adherence to these deadlines is critical to avoid penalties and interest charges. Our firm proactively sends advance reminders and operational instructions to ensure timely compliance.

Periodic Obligations:

  • VAT Settlements: these are due by the 16th day of the month following the reference period (either monthly or quarterly);
  • Periodic VAT Communications (LIPE): the submission of quarterly settlement data is due by the last day of the second month following the quarter;
  • VAT Payments: Payments are due on the same deadline as the VAT Settlements and must be processed using the unified Form F24.

Annual obligations and Credit Management:

  • Annual VAT Return: the main annual tax declaration must be filed by April 30th of the following year;
  • Refunds or Offsetting: the timelines for processing VAT credits are set according to the specific procedures and processing times of the Italian Revenue Agency.

4. WHAT THE CUSTOMER SHOULD DO

The client is required to promptly provide the following documentation for the reference period:

  • All electronic invoices issued and received (both sales and purchases);
  • Customs documents (import/export) and credit notes, where applicable;
  • Bank account statements for verification of payments and settlements;
  • Communication of any specific operations (e.g., Intra-EU supplies, reverse charge transactions, special VAT regimes).

It is crucial to transmit all documents within the agreed-upon deadlines to allow our firm to accurately prepare the settlements and manage the necessary payments.

5. WHAT WE DO

Our team meticulously verifies the VAT ledgers, performs reconciliation checks, and accurately calculates the tax payable or the residual credit.

We prepare the necessary F24 forms for payments, manage the submission of periodic communications and the annual VAT return, and securely archive all transmission receipts.

Furthermore, we assist the client in managing VAT credits, facilitating requests for refunds or optimizing their use for offsetting other liabilities.

In the event of automated tax audits, we provide the necessary documentation and support required for regularization and compliance.

In addition, we provide clients with a dedicated electronic invoicing portal, available in English. This portal allows for the simple and secure issuing, receiving, archiving, and monitoring of all e-invoices.

Our system is constantly updated to meet the latest technical specifications of the Italian Revenue Agency (XML and SDI protocols) and is fully compliant with current regulations regarding digital preservation and data privacy (GDPR).

We offer continuous support for portal usage and the management of associated VAT flows. This ensures an efficient, traceable, and fully integrated accounting and tax process, aligning perfectly with all other corporate compliance needs.

6. Outputs PROVIDED

Our clients receive the following key documents and reports as part of the service:

  • Monthly/Quarterly VAT Settlement Statements;
  • Copies of prepared or submitted F24 Forms (for tax payments);
  • Electronic Submission Receipts for all communications and declarations;
  • Detailed VAT Account Statement outlining tax payable/credit balances;
  • Annual Summary Report for management or headquarters.

All documents are made available in a digital format through the secure client portal in a private access area.

7. NOTES AND RECOMMENDATIONS

We strongly recommend the following practices for optimal compliance:

  • Invoicing and Transmission: ensure the numbering and timely electronic transmission of all invoices are kept fully up-to-date;
  • Updates and Changes: promptly communicate any changes to master data, corporate details, or the applicable VAT regime;
  • Payment Planning: periodically verify the availability of funds to cover upcoming F24 tax payments.

Proper deadline planning and timely cooperation in providing the required documents are essential to prevent irregularities and the application of late payment interest.

Should you have significant VAT credits, it is advisable to consult with our Firm to evaluate the most advantageous method of utilization (either refund or offsetting).

8. REGULATORY REFERENCES AND USEFUL LINKS