Most retailers must have adopted electronic Point-of-Sale machines for VAT reporting by 1 July 2022
Italy is enforcing the adoption of electronic cash registers which the capability to make automated daily transaction reports to the tax authorities. All retailers above the further reduced threshold will have to acquire one of the approved models of cash registers. This will also include from July retailers on the flat rate scheme.
This completes the rollout which started in 2019 for retailer with an annual turnover above €400,000. There was also an option to appeal to the authorities that it was not practical to introduce an approved fiscal cash register. This will now be closed.
Learn more about Italian VAT in our country guide.
A turnover threshold will remain in place, but this is now €25,000 per annum.
The fine regime will be €30 per transaction plus 4% of the value of the transaction not correctly reported.
Italy – largest EU VAT Gap encourages VAT cash registers
In absolute terms, the highest latest EU VAT gap was recorded in Italy (€30.1 billion), which accounts for 26% of all missing EU VAT (after stripping out UK).
Several other countries have had to delay their roll outs of VAT certified cash registers due to COVID-19, including the Czech Republic. These countries are looking to copy the success of Russia and Slovenia.
European VAT electronic cash registers
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