Flat rate system: applicability to the taxpayer opting for the simplified system
The resolution n.64 of 14.9.2018 issued by the Tax Authorities specified that taxpayers in the simplified accounting system could switch to the flat-rate scheme (Law December 23, 2014, No. 190) without respecting the term of the three years provided by art. 1 co. 70 of the same law, if in possession of the requisites provided for.
From 2015, following the art. 66 of the T.U.I.R, the income applying the provisions was determined without implementing the option within the annual VAT model (line VO26 – Model VAT 2018). For the tax period of 2017, the taxpayer implemented this choice by ticking the option in the box at the VAT model just mentioned above. During that year (2017), the taxpayer determined their income by adopting the cash receipt criteria according to which: “Subject to the option, binding for at least three years, taxpayers can keep the VAT registers without making notes regarding collections and payments. In this case, for simplification purposes, presumes that the date of registration of the documents coincides with that in which the related collection or payment occurred “. The applicant asked for when the three-year term begins in order to apply the flat-rate scheme.
The Tax Authorities clarified that the decision to apply the simplified accounting regime, exercised since 2015 through this kind of intent, does not constrain the taxpayer to wait the three-year term, “being this a regular regime for minor taxpayers“.
Therefore, for the tax year 2018, the applicant can make use of the specific provisions of the flat-rate scheme.
Moreover, the Tax Authorities clarified that the omitted indication of the option constitutes in any case an infringement, which can be remedied through the institute of onerous review, art. 13 of the D.L. 472/97.
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