Addressing VAT Debts: Understanding the VQ Framework

The VQ framework within the VAT declaration is designed to account for non-spontaneous payments, primarily in situations where the tax authority has already issued a compliance interaction or a formal notice due to overdue VAT payments. This framework is essential for reconciling discrepancies between declared VAT and actual payments.

The Role of Periodic VAT Declarations (LIPE)

With the introduction of periodic VAT declarations (LIPE),tax authorities can now monitor payment compliance more efficiently. This allows them to promptly notify taxpayers of any payment discrepancies. The VQ framework is a direct response to this enhanced monitoring capability, providing a mechanism to manage situations where initial payments were not made on time.

Handling Spontaneous Payments After Deadlines

A key question arises when a VAT payment for a prior tax year (e.g., 2023) is made spontaneously in a subsequent year (e.g., march 2025), possibly after a compliance notice has been issued. In such cases, the standard VQ framework is not applicable, as it is designed for non-spontaneous payments.

The Corrective Action: Submitting a Supplementary VAT Declaration

When a spontaneous payment is made after the deadline, the recommended course of action is to submit a supplementary VAT declaration for the relevant tax year. As a notable example, if a VAT payment for 2023 is made in 2025, a supplementary declaration for the 2023 tax year (VAT model 2024) should be filed.

This supplementary declaration allows you to adjust the amount of VAT paid in the VL framework, effectively converting a previously “virtual” credit (resulting from the initial underpayment) into an “effective” credit. This effective credit can then be reported in the subsequent VAT return (e.g., VAT model 2025 for the 2024 tax year).

Timing is Crucial: Coordinating Supplementary and Regular Declarations

It is imperative to submit the supplementary declaration before or simultaneously with the regular VAT declaration for the following year. This ensures that the credit resulting from the late payment can be immediately reported and utilized. If the deadline for the subsequent year’s declaration has already passed, the process becomes more complex, potentially requiring a specific framework for reporting credits from supplementary declarations.

Step-by-Step Guide to Correcting VAT Filings

1. Identify the Discrepancy: Determine the VAT amount that was not paid on time for the relevant tax year.
2. Make the Spontaneous Payment: ensure the VAT debt, including any penalties and interest, is paid.
3. Prepare a Supplementary Declaration: Complete a supplementary VAT declaration (e.g., VAT model 2024 for the 2023 tax year).
4. Adjust the VL Framework: In the VL framework of the supplementary declaration, report the late payment.
5. Submit the Supplementary Declaration: File the supplementary declaration before or alongside the regular VAT declaration for the following year.
6. Report the Effective Credit: Include the resulting effective credit in the subsequent VAT return.

Deadline Considerations

ensure all adjustments are completed by the deadline for submitting the VAT declaration for the current tax year (e.g., April 30, 2025, for the 2024 tax year). This deadline also applies to submitting supplementary declarations for the previous year,allowing for direct reporting of any emerging credit in the following year’s return.