January 28, 2023

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New procedures for opening and closing VAT numbers

Today’s topic will be the topic of VAT numbers called “Opening and Closing”. What are the risks of using it and what measures can be expected?

With regard to the so-called “opening and closing” VAT numbers, a new measure has been introduced into the new measurement Budget Law 2023. The goal is to prevent the opening and closing of VAT numbers in short periods, with the aim of evading the tax authorities. This way it will come Evasion of direct and indirect taxes.

To address this problem, an entire chapter is devoted to the situation within the new budget law. The plan calls for tighter controls, possible office closures and heavy fines. Let’s see together what are the risks that may result from this particular practice.

Opening and closing the VAT number: what is it and what does the 2023 Budget Law stipulate?

Office with documents and accounts money (3) min

The practice of opening and closing the VAT number at short intervals, thus avoiding overtime Found by the tax authorities and you have to pay the taxis what is known asOpening and closing the VAT number“.

This is a more common practice by non-EU entities, which can be more easily untraceable. All before the finance department can get involved. Among the new measures laid out in the 2023 Budget Law is also a plan to counter open and close VAT numbers.

The plan includes:

  • Comprehensive checks by the financial department on the various contacts for opening new businesses (hence the VAT figures), with the possibility of a comprehensive check in the office, in the case of activities deemed more vulnerable;
  • Possible closure of the office for those unable to pass the required checks;
  • Administrative fine of 3,000 euros to be paid by the taxpayer.
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These will be the ones who mainly have to do the checks revenue agency. In practice, after analyzing the risks, the taxpayer may be asked to present himself at the AdE offices, with a series of documents, to prove the effective exercise of the activity.

What positions are at risk of controls from 2023?

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The categories that will be monitored are:

  • self employed;
  • Individual entrepreneurs
  • and legal representatives of companies, associations or entities with or without legal personality

50 thousand euro guarantee

Desk with accurate accounts documents and money

If the Revenue Agency controls are not passed, the new VAT number can only be opened in Followed by a bank or insurance guarantee for a period of not less than three years and not less than 50,000 euros. This guarantees someone else’s commitment. In this case, since the taxpayer is not considered a reliable taxpayer (that is, he is afraid that he will close the VAT number before the due contributions are paid, and then disappear), an additional step is required. In the event of tax violations or tax violations, the guarantee will act as a guarantee.