VAT - Periodic payment (monthly or quarterly)
Latest update: 26/07/2021
About the payment
VAT taxpayers must calculate and pay VAT periodically on a monthly basis or, in some cases, on a quarterly basis, exclusively online, using the F24 form.
In order to calculate VAT on a monthly (or quarterly) basis, the taxpayer must carry out the following operation:
- VAT due during the month (or quarter) resulting from entries made or to be made in registers relating to invoices issued or fees for taxable transactions
- VAT resulting from entries made in registers relating to goods and services purchased, on the basis of the expenditure documents in his possession and for which the right to deduct is exercised in the same month (or quarter).
In addition, to determine the final result of the VAT settlement for the period, it is necessary to:
- subtract any tax credit from the previous period;
- add any tax liability for the previous period below EUR 25.82.
The final result of the calculations can be a:
- debit amount, to be paid to the tax authority, if it is equal to or greater than EUR 25.82 (otherwise it is carried over to the next period);
- credit amount, to be deducted in the following period.
Warning: taxpayers making monthly settlements who outsource VAT accounting, can settle on the basis of the data of the second previous month rather than on the basis of the data of the previous month.
How and when to pay VAT
Periodic VAT payments are made using F24 form, exclusively online.
Payment deadlines vary according to the type of taxpayer.
A distinction must therefore be made between:
- monthly taxpayers: any VAT due must be settled and paid by the 16th of the following month;
- quarterly taxpayers: VAT must be settled and paid by the 16th of the second month following each of the first three calendar quarters (16 May, 20 August and 16 November). The paymentfor the last quarter is to be made at the time of the annual adjustment by the 16 March of the following year, except when the taxpayer takes up the option of benefiting from the longer deadline for the payment of taxes due on the basis of the tax return.
In the case of quarterly payment, any tax debt must be increased by 1% by way of interest.
Quarterly VAT returns can be chosen by taxpayers who in the previous calendar year, had a turnover not exceeding:
- EUR 400 000 for self-employed persons and companies carrying out services;
- EUR 700 000 for companies carrying out other activities.
The option, which must be communicated in the first annual VAT return to be submitted after the choice has been made, takes effect from the year in which it is exercised and until its revocation, unless the above indicated limit is exceeded.
Special quarterly taxpayers
Some categories of taxpayers are allowed to make quarterly settlements, regardless of their turnover and without the application of 1% interest.
These are, in particular,the following taxpayers:
- fuel dispensers;
- road hauliers of goods for third parties;
- persons providing services to the public;
- persons practising arts and health professions.
Payments must be made according to the same deadlines as for those for ‘ordinary’ quarterly taxpayers (16 May, 20 August and 16 November), except for the payment for the fourth quarter, which must be made by 16 February of the following year instead of 16 March, net of any advance payment made by 27 December.