Article 25 of the draft of 2026 Italy’s Budget Law introduces a new automatic settlement procedure whereby the Revenue Agency determines and notifies taxpayers of the amount of tax debt due in cases where the annual VAT return has not been filed.

This procedure enables the Revenue Agency to calculate the tax due based on the available digital documentation, including issued and received electronic invoices, transmitted electronic payments, and communications of periodic VAT settlement data. Once these procedures are completed, the taxpayer will receive a notice of irregularity containing the outcome of the settlement and the calculation of the tax due. At this point, the taxpayer may either proceed with the payment of the amounts or provide clarifications regarding the assessment.

The payment will be made not only for the tax due, but also for the interests and for the administrative penalty equal to 120% of the tax due for the relevant tax period. If the amounts are paid within 60 days of the notification, the penalty will be reduced to one third of its ordinary amount. Otherwise, the settled sums will be directly registered as final amounts due.

If the taxpayers believe that certain elements have been incorrectly assessed or not taken into account, they may respond to the Office, providing the necessary documents and clarifications. If the provided documentation results in a different tax amount being due, the taxpayer will receive a new notice and will have 60 days to make the corresponding payment. Also in this case, if the explanations are deemed insufficient, the amounts will definitively enter in the tax register.

In conclusion, the draft of 2026 Budget Law strengthens the control capability of the Revenue Agency and enables to accelerate the procedures and the recovery of taxes due.

By The Editorial Team

Source: Il Sole 24 Ore