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TAXES

Italy pledges to cut queues in push to increase tax payments

The Italian tax office has set out plans to move more services online and allow appointment bookings instead of queuing as part of the government’s push to get more people to pay their taxes.

Published: 20 March 2024 13:54 CET
Italy pledges to cut queues in push to increase tax payments
Queues at the Italian tax office are a common sight - but are they soon to become a thing of the past? (Photo by ANDREAS SOLARO / AFP)

The Italian inland revenue agency (Agenzia delle Entrate) was preparing to announce plans this week to cut queues at tax office counters and make the Italian tax system more user-friendly, news agency Ansa reported on Wednesday.

Appointments for the “vast majority” of services for which taxpayers normally visit Agenzia delle Entrate offices will soon become bookable online, the agency was set to announce at the publication of its operational plan for 2024-2026 ahead of the coming tax season, according to Ansa.

Moving to a mostly appointment-based system will put an end to the current need to take a numbered ticket and wait in line to be seen at a counter for most services, the agency reportedly hopes.

READ ALSO: Why is Italy’s government being accused of helping tax dodgers?

By 2026, the plan is to make 90 percent of in-person tax office services available via appointments bookable online.

The plan aimed to further cut down on queuing at offices by making up to 87 percent of tax services accessible digitally through the agency’s website.

(Photo by ANDREAS SOLARO / AFP)

The agency was also to continue the push for more people to use a pre-filled online income tax return, which has already been an option for several years for anyone who needs to file the 730 tax form.

Around 24.5 million people currently use the pre-filled 730 form, and the number was expected to increase by more than half a million by 2026, the agency said.

READ ALSO: When do I need to start paying Italian taxes?

To “improve relations with the taxpayer”, the agency was also set to pledge to pay VAT refunds within 75 days and to send out tax notices earlier.

The tax agency also planned to increase checks and audits, which it said were projected to bring in at least an additional 11.2 billion euros in tax revenue annually from 2024.

READ ALSO: Five essential things to know about filling out your Italian tax return

The plans were revealed amid a push by the Italian government to introduce reforms making taxes easier to pay and to collect, as the state continues to struggle to recover billions in unpaid tax and fights a longstanding and widespread issue with tax evasion.

Italian Prime Minister Giorgia Meloni last week called for a wider overhaul, telling parliament the current Italian tax system was “disproportionate, illogical and vexatious… and quite useless too.”

Her plans for further changes would create “a new idea of Italy, closer to the needs of taxpayers and companies,” she said, though critics immediately denounced her proposals as a “gift to tax dodgers”.

Italy has lost some 932 billion euros to tax evasion over the past ten years alone, according to estimates from financial newspaper Il Sole 24 Ore.

Member comments

  1. It’s been my experience that even with an appointment you have to take a ticket or wait in line without your appointment times being triaged. Especially true at Entrate. Gaging if you’ll even get to the door while standing in line when you are due for your appointment is nearly impossible. Hoping process is introduced on site that conforms to new systems.

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TAXES

What happens if you miss your Italian tax return deadline?

Living in Italy means you’ll have to file and pay taxes in the country. But what are the penalties if you miss the yearly tax return deadline?

Published: 5 April 2024 16:52 CEST
Updated: 18 April 2024 13:12 CEST
What happens if you miss your Italian tax return deadline?

Under Italian law, anyone who’s considered a resident for tax purposes (or fiscal resident) is required to file and pay taxes in Italy.

As Italy’s tax office explains, you’ll be considered a tax resident in Italy if, for at least 183 days a year, you are registered with Italy’s National Registry of the Resident Population (also known as Anagrafe) or have your place of “residence or habitual residence” in Italy.

People that don’t meet the above criteria aren’t considered Italian tax residents but may still have to file and pay Italian taxes on any income generated in Italy.

Either way, if you’re required to file an income tax return (or dichiarazione dei redditi) in Italy, you’ll have do so in one of the following two ways:

  • If you’re an employee or retiree, you’ll need to complete and file Form 730 by September 30th.
  • If instead you’re self-employed, or belong in any other professional category, you’ll need to file the Redditi PF form by October 15th.

READ ALSO: When are the deadlines for filing your Italian income tax return?

As much as it may be hard to keep up with Italy’s tax calendar, taxpayers are strongly advised to keep these dates in mind as the Italian taxman shows little in the way of leniency when it comes to late filing (dichiarazione tardiva) and failure to file (omessa dichiarazione).

Late filing 

Those who submit their income tax returns within 90 days after the deadline face late filing (or dichiarazione tardiva) penalties.

Late declarations are punished with a fine ranging from 250 to 1,000 euros and late-payment penalties corresponding to 30 percent of any amount owed in taxes. 

READ ALSO: Should you hire an accountant to file your Italian taxes?

It’s worth noting here that you can significantly reduce both of the above penalties by using a procedure known as ravvedimento operoso (literally ‘active amendment’), which allows taxpayers to self-report and rectify the delay in their tax return.

Failure to file 

If you fail to submit your tax return within the 90-day period after the deadline, you’ll face failure to file (or omessa dichiarazione) penalties.

This is punished with a fine ranging from 250 to 1,000 euros if no taxes are due. If any taxes are due however, the fine will be equal to 120 to 240 percent of the total amount owed.

Once again, taxpayers can use the ravvedimento operoso procedure to reduce the penalties.

What happens if I make a mistake in my tax return?

Missing your declaration deadline can land you in big trouble, but potentially so can any mistake in your annual tax return.

A tax return showing income or taxable income that is lower than the one assessed or taxes that are lower than those actually owed (this is generally referred to as dichiarazione infedele, or ‘inaccurate filing’ ) can result in a penalty ranging from 90 to 180 percent of the highest tax owed.

The same punishment applies to declarations showing tax deductions which the taxpayer wasn’t eligible for.

Please note that The Local is unable to advise on individual cases. Find more information on the Italian tax agency’s website.

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