Agenzia delle Entrate implements automatic VAT liquidation

The Italian Revenue Agency (Agenzia delle Entrate) has implemented a new procedure for the automatic liquidation of VAT in cases where annual declarations are omitted or submitted without necessary data regarding active operations. This measure, following the 2026 Budget Law, allows the agency to reconstruct a taxpayer's position using existing information sources, including electronic invoices, electronic payments, and periodic VAT settlements.

Under this system, the agency calculates the tax due by analyzing issued invoices and electronic receipts, subtracting credit from received invoices and previous payments. Taxpayers will be notified of the results via PEC (certified email) or registered mail. Once notified, individuals have 60 days to report errors, provide missing data, or settle the payment. Failure to comply may result in a penalty of 120% of the tax due, plus 4% annual interest.