Pre-filled VAT returns by the Tax Office on value added will apply to countries such as:

Italy:

The Italian government has launched an ambitious new VAT collection program where the Tax Office will pre-complete VAT returns on behalf of taxpayers. This program aims to simplify reporting and procedures for VAT documents while improving tax compliance. This is because pre-filled VAT forms can both simplify the collection of VAT by tax authorities and increase the ability of businesses to comply with tax obligations.

How it works – In short, the regulations stipulate that the data collected from transaction information provided from electronic invoices via SDI, cross-border transactions, as well as data collected on charges electronically, will be used by the Tax Office to pre-fill a VAT return for later submission by the taxpayer. For the time being, this program only applies to companies, professionals and self-employed persons living and established in Italy. Indeed, the pre-filled forms will be treated as drafts and taxpayers will eventually have the option of correcting incorrect data.

Central role of the Revenue Office in managing the new pre-filled VAT return – In particular, the Italian tax authorities, Agenzia delle Entrate , will establish VAT books and compile quarterly VAT returns, up to including the annual return, only for entities resident in Italy. In particular, to prepare these VAT reports, the Agency will be able to use transactions and data processed by the SdI e-invoicing system, communication of cross-border transactions and daily online cash reports, as well as fiscal data present in “ Anagrafe Tributiaria ” or tax records. such as, for example, a VAT return for a previous year and interim payment notifications from previous quarters. However, companies will be able to review and correct fiscal declarations before approval. Although, for non-resident Italian companies registered as VAT payers, they will still be required to complete and submit VAT returns as before. Moreover, as regards the possibility for a VAT trader to use pre-filled VAT documents through professional intermediaries, the latter must obtain an authorization to use electronic invoicing services.

Greater automation, easier fulfillment of tax obligations – Millions of taxpayers will be involved in pre-populated VAT experiments and related application methods. It will be another step forward in the simplification of the tax system, focused on renewing the relationship between taxpayers and tax authorities, increasingly oriented towards dialogue and exchange, mutual and recognized credibility. A process by which the Tax Office will involve the Tax Agency in providing a permanent online assistance program to all VAT taxpayers residing and established in Italy, through a dedicated area on the Agency’s website, where draft documents are already partially pre-filled with data transactions obtained from electronic invoices.

Spain:

Following the successful launch of the SII live invoice reporting platform, Spain began issuing pre-filled VAT returns.

The returns, model 303, are pre-filled with invoice transactions already reported by the SII platform. The scope of the transaction includes:

• Only Spanish resident companies registered as VAT payers
• B2B transactions between private companies.
• Domestic B2C transactions are also included. From September 1, 2018, the requirement will also apply to sales of goods for personal use above EUR 155 gross, outside the customs territory of the EU.
• Invoices for the domestic supply of taxable goods or services are included.
• Intra-group/Intra-company transactions are included.
• Pre-submitted returns will still need to be reviewed and missing transactions added. They will cover exports and no intra-Community supplies of goods or services with a zero value are allowed.

France:

France is preparing for a major reform that will require all companies to exchange invoices electronically (e-invoicing) and to report to the administration all tax data on their transactions (e-reporting) falling under the scope of VAT.

Subject to the planning of the schedule proposed by the companies, the Act provides for the entry into force of this reform in stages from January 1, 2023 to January 1, 2025 (Article 153 of the Finance Act for 2020). From January 1, 2023, companies will be required to agree to receive invoices in electronic form. This reform aims to combat VAT fraud, simplify the life of businesses, reduce the cost of processing invoices, and ultimately enable the pre-filing of their VAT returns. According to the administration, this could also affect the management of the deadlines for settling invoices by companies.

Hungary:

The first preliminary VAT return will be for the reporting period beginning on October 1, 2021. The decree provides for a delayed implementation date for value added tax (VAT) returns, which will be prepared by the tax authority and presented to taxpayers as “preliminary” VAT returns.

According to the regulation, instead of the first preliminary VAT return, which is to be for the reporting period starting on July 1, 2021, the first preliminary VAT return will be for the reporting period starting on October 1, 2021. This delay in implementation is a response to the emergency and economic situation resulting from the coronavirus (COVID-19) pandemic. Data on import VAT payable by taxpayers who have the authorization for self-settlement of import VAT (for the import of goods and input VAT related to the import of goods) will be first included in the VAT declaration for the VAT reporting period after January 31, 2022.

The implementation date depends on the taxpayer’s status. For example, different implementation dates apply to taxpayers who:

• They will declare the acquisition of crops and metal products subject to the reverse charge mechanism
• They will declare intra-Community acquisition or import of passenger cars or the supply of new means of transport
• They will request a deferment of the payment of compensation due on the basis of epidemiological measures relating to animal diseases

For the above-mentioned taxpayers, the first VAT declaration prepared and proposed by the Tax Office will be the declaration for the reporting period covering July 1, 2022.

Independent verification of VAT declarations prepared and proposed by the Tax Office for reporting periods preceding the reporting period covering July 1, 2022 will be possible via the official form issued by the Tax Office.

If you have any questions related to VAT declarations prepared and proposed by the Tax Office or other questions, we remain at your disposal.