How and why can the taxman close a VAT number? In what circumstances is a Community VAT number excluded from Vies, the European database of subjects who carry out operations within the EU? The Revenue Agency has answered these questions with a new circular. The crackdown aims to flush out any fraud connected with bogus VAT numbers.
ANALYSIS AND CONTROLS
Within six months from the assignment of the VAT number or from the registration in the Vies, the tax authorities assess the possible presence of elements of risk, such as for example omissions or inconsistencies in the payments and in the declarations. For the operators identified, on the basis of the risk analysis, periodic checks are triggered, which can be both formal and substantial, to verify that the data declared when assigning the VAT number or registering with the Vies are true.
THE CLOSURE OF THE VAT NUMBER AND THE EXCLUSION FROM VIES
In the event of failure to pass the checks, the Agency notifies the taxpayer of a provision for the termination of the VAT number, unduly requested or maintained. Consequently, the same VAT number will be excluded from the database of subjects who carry out intra-community operations (VIES).
IN CASE OF FRAUD, STOP INTRA-COMMUNITY OPERATIONS
For EU VAT numbers which, following the checks, appear to have carried out operations in the EU in a context of VAT fraud, exclusion from the Vies is triggered. The provision also applies if the operator possesses the subjective and objective requirements. In any case, once the irregularities have been removed, the taxpayer who has undergone an exclusion measure can request to be included again in the Vies.
