- Article 6, paragraph 6 of DLgs. 471/97 imposes a fixed penalty of 250 to 10,000 euros for the buyer/contractor if they deduct VAT in excess of what is actually due
- The penalty applies when the counterparty mistakenly charges a higher VAT rate or applies VAT for exempt, non-taxable, or excluded transactions
- The purpose of the penalty was to prevent the buyer from facing multiple penalties for incorrect VAT deduction
- The jurisprudence has interpreted the law differently, stating that the penalty does not apply to exempt/non-taxable/excluded transactions
- A new delegated decree on sanctions reform may change the penalty to apply only when VAT is applied at a higher rate than required, or for exempt/non-taxable transactions
Source: eutekne.info
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
