The website ItalyEurope24 published an article stating that the Italian Minister of Economic Affairs Pier Carlo Padoan convened Italy’s top tax collection officials to put in place new measures to recover a staggering EUR 6 billion in revenue from fighting VAT evasion over the next two years, hoping to close a VAT gap , which in 2014 was some €40 billion euro.

The plan is to fight all types of VAT fraud, by requiring electronic invoicing in transactions in the private sector, and also by broadening the range of actions to combat VAT fraud. The reduction of the VAT gap, is the difference between taxes that were actually paid and taxes that should have been paid if tax law was strictly adhered to, and was the main incentive to propose the new measures.

The Italian Minister of Economic Affairs Pier Carlo Padoan believes in the Latin American approach and believes that VAT fraud, TAX evasion and missed payments can be combated by a better use of information technology.

That is why Italy wants to step up the use of electronic invoicing, and is seeking a compromise with Brussels to allow Italy to lift the EU ban on making electronic invoicing mandatory in the business to business segment!

Some other proposed measures by the Italian ministry of Economic Affairs:

• Italy aims to strengthen the rewarding mechanisms for taxpayers that work hand in hand with authorities, with fewer audits for these companies in return. [Editors note: hmmm…]
• Intensified risk analysis which is already started to show results regarding real estate sales and the motor trade.
• To reduce the phenomenon of so-called “carosel fraud,” cooperation must also be strengthened with other international tax authorities.
• The use and sharing of databases, digital tax and implementation of the Base Erosion and Profit Sharing principles set out by the OECD.