“Cuts” of up to 80% on fines for late VAT returns of zero or credit returns are provided for in the new provisions of the Ministry of Finance, effective from 19 April 2024.
The fine is now reduced to €100 (from €250 or €500) for professionals and businesses that keep simple or double-entry books and submit late VAT returns with no tax due. The measure applies retroactively: for infringements after 19 April 2024, the fines are cancelled or, if already paid, offset against other debts or refunded.
How the fines are structured
A fine of €100 per infringement is imposed on taxpayers:
- who do not submit or submit late returns without tax liability or returns of an informative nature
- who fail to respond to requests for information from the tax administration
- who keep single-entry or double-entry books and submit late VAT returns with zero or credit balances
A fine of EUR 250 (for single-entry) or EUR 500 (for double-entry) is imposed:
- for late or non-submission of returns with tax due
- for returns withholding tax or VAT due
- for not responding to requests for information
No fines for:
- overdue VAT or withholding tax amending returns, provided the original was submitted on time
- amending income tax returns (of individuals or legal entities) with additional tax up to EUR 100
- original income declarations with a tax liability of up to EUR 100
- returns of withholding tax (excluding gambling winnings) up to EUR 100
- returns of withholding tax with a difference of up to EUR 100
- returns of indirect taxes (excluding VAT and FMA), fees and contributions up to EUR 100
- returns on behalf of minors or for tax years where the taxpayer was a minor
The changes are aimed at reducing penalties for typical violations with no fiscal impact, while maintaining a stricter framework for cases where tax arises for payment.
