VAT return

Latest update: 31/03/2023

Each year, taxpayers who carry out a business, art or profession must submit an annual VAT return covering all the transactions carried out in the previous year.

The annual return determines the taxpayer’s position in terms of the difference between input VAT and output VAT for the entire calendar year, and any VAT refunds due to the taxpayer. Any periodic payments are also taken into account, as well as any tax credit resulting from the previous year’s annual return and not claimed back or used to offset other taxes.

If the annual VAT return shows that the taxpayer owes VAT, the amount due must be paid by the legal deadline.
For more information, see the annual VAT section.

If the taxpayer is owed a refund, they can claim it either through:

• offsetting against taxes and other contributions due, if the requirements are met
• offsetting against the periodic VAT payments of the following year, provided that the amount claimed is entered in the appropriate line of the annual VAT return
• through a refund if legal requirements are met.

Who must submit the annual VAT return

The annual VAT return must be submitted by:

• holders of VAT numbers, even if they did not carry out taxable transactions in the tax period;
• non-resident taxpayers that registered for VAT directly or appointed a tax representative;
• fixed establishments of non-resident entities, being taxpayers subject to VAT.

Entities not required to submit a VAT return

Certain categories of taxpayers, despite holding a VAT number, are exempted from submitting the annual VAT return. They include, for example, taxpayers covered by special schemes, such as those that opted for the flat-rate or ‘minimi’ (small taxpayer) scheme, etc.

The annual VAT return must be sent between 1 February and 2 may 2023, using the appropriate forms and reporting software provided by the Revenue Agency. It must be submitted online, through the Fisconline/Entratel services, directly by the taxpayer or through authorised intermediaries.

Annual VAT return forms

The Annual VAT Return Form for 2023 must be used to file the annual VAT return for tax year 2022.

Alternatively, certain categories of taxpayers with certain characteristics can use the Base VAT Form, which must be sent to the Revenue Agency with the same procedure and by the same deadline as the annual VAT return.

In case of error

To correct errors or omissions in the annual VAT return, taxpayers can submit an additional return, using the same form.

Thresholds for using monthly or quarterly VAT returns

Quarterly VAT returns can be filed by those taxpayers whose turnover in the previous calendar did not exceed:
 

• EUR 400 000 for self-employed persons and service businesses
• EUR 700 000 for other businesses.

 

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