Budget Law 2018 introduced a new fine on the transferee/customer for the receipt of invoices bearing VAT higher than the amount due, which has been paid by the transferor/supplier, though irregularly, thus allowing the same transferee/customer to deduct the entire VAT charged. In fact, the most relevant effect of the provision is the recognition of the right for the transferee/customer to deduct the higher VAT paid.
The new fine ranges from 250 to 10,000 Euro and is in line with the similar penalty provided in case of irregularities related to the incorrect application of the reverse charge mechanism.
However, there are some doubts on how the transferee/customer should correctly apply such regulation in order to exercise the right to deduct VAT, in order to avoid being subject to a more unfavourable treatment according to the choices and the behaviour of the transferor/supplier.
The regulatory environment is quite complex and it could be very difficult for taxpayers to choose the most correct rule to apply, or better, the less onerous penalty.
For further information, contact Mario Spera.
