Corrective action 2017 – Off-setting and compliance

Decree 24 April 2017 n. 50 foresees the tightening of the restrictions on the use of tax credits off-setting, pursuant to art. 17 of Legislative Decree no. 241/97 (ie “horizontal compensation”), as well as modification of the ways in which the same compensation can be made by taxpayers.

Under the first aspect, the threshold beyond which the use in horizontal offsetting for direct taxes (Irpef, Ires and Irap) is subject of affixing the stamp of conformity by a CPA/Auditor, has been reduced from EUR 15.000 to EUR 5.000. With regard to VAT in particular, a taxpayer may use the annual VAT credit in horizontal clearing beyond the limit of 5.000 EUR only after the proof of compliance with the VAT declaration from which the credit itself emerges. Moreover, it should be noted that the regulatory innovations in question do not affect quarterly VAT credits, for which, regardless of the amount, there is no obligation to affix the IVA TR tax certificate.

In the case of a tax offsetting not complying with the above, the amount of tax off set in violation of the aforementioned rules,  interests as well as penalties shall be recovered. In summary, thanks to the novelties introduced by the decree in question, the annual VAT credit may be offset “horizontally” in F24 form without the prior submission of the annual declaration up to EUR 5.000 from the first day of the year following its maturation.

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