Italy Update - Simplification of Tax Collection

On April 11, 2024, the Italian Revenue Agency introduced simplified tax return models for the 2024 fiscal reform. These updates, which relate to income taxes, VAT, and other taxes, are part of the Tax Compliance Decree (Legislative Decree no. 1/2024), which implements guiding principles from the tax reform (Law no. 111/2023). 

Simplified Return 

This tax reform introduced a significant change in how the taxable persons could remit the tax collection to the treasury. Fundamental changes include streamlined VAT declaration models, achieved by removing irrelevant information that the tax authority can obtain from its databases or other administrations.

This reduction mainly affects tax credits from economic benefits. The obligation to declare tax credits used only for offsetting debts is gradually eliminated. If tax credits must still be declared, not including them in annual returns won't revoke the benefit, provided the credits are valid, excluding state aid or de minimis aid. 

Additionally, the reform introduces pre-filled tax returns for self-employed individuals and entrepreneurs on an experimental basis, streamlining the filing process and minimizing errors.

Conclusion

The recent fiscal reform implemented by the Italian tax authority aims to ease the compliance burden on various taxable persons by introducing streamlined models and reducing redundant information requirements. 

The Decree outlines rationalization and simplification measures, for which regulatory offices received circular 8/E, a document providing operational instructions regarding these changes.

Source: Agenzia delle Entrate