Tax Authority Penalties

Following table contains – by means of various use cases– some reasons for incurring penalties in VAT Services on Amazon subscription countries, details on the potential penalty amount and late payment interest rates if any. The application of penalties in case of infractions can be a complex and subjective legal matter. Therefore, this table cannot be seen as a complete overview of the penalties or policies from the tax authority.

Note: Details under this section “Tax Authority Penalties” have been provided by a third party tax provider, Avalara, and should be read for general guidance only. Tax authorities will make assessment son penalties on a case-by-case basis. Information on this page does not constitute tax, legal, or other professional advice and must not be used as such.

Country	Causes	Amounts	Interest
UK	Late VAT filing and/or late VAT payment	Penalties increase with each late payment. The first late payment will incur no penalties, after which: Annual turnover is less than £150,000: 2^nd late payment = no penalty 3^rd late payment = 2% of VAT liability (penalty waived if less than £400) 4^th late payment = 5% of VAT liability (penalty waived if less than £400) 5^th late payment = 10% of VAT liability or £30, whichever is more 6^th and subsequent late payments = 15% of VAT liability or £30, whichever is more Annual turnover is £150,000 or more: 2^nd late payment = 2% of VAT liability (penalty waived if less than £400) 3^rd late payment = 5% of VAT liability (penalty waived if less than £400) 4^th late payment = 10% of VAT liability or £30, whichever is more 5^th and subsequent late payments = 15% of VAT liability or £30, whichever is more
	VAT return contains careless or deliberate inaccuracy	100% of any tax under-stated or over-claimed
	Tax authorities' assessment is too low and you don't inform them it is wrong within 30 days	30% of assessment
Germany	Late VAT filing	1% to 10% of VAT liability
	Late VAT payment	1% per month on every full €50 unpaid; e.g., VAT liability = €183; payment delay= 1 month; penalty = 1% of 150 = €15
	Unpaid VAT discovered in Audit	Interest payment starting 15 months after payable VAT deadline; E.g., If payable VAT deadline is 10th Jan, 2014; interest starts in April 2016	6% per annum
France	Late VAT filing	0-30 days - Up to 10% Return not submitted within 30 days of receiving a notification from the Tax Authorities – Up to 40% Suspicion of fraud - Up to 80%	2.4% per annum
	Late VAT payment	0-30 days - Up to 10% Return is not submitted within 30 days of receiving a notification from the Tax Authorities – Up to 40% Suspicion of fraud - Up to 80%	2.4% per annum
	Unpaid VAT discovered in Audit	Decided on case-by-case basis	Decided on case-by-case basis
Spain	Late VAT registration	EUR 400
	Late VAT filing	If notified by the Tax Authorities and tax payment due - 50-150% of the VAT payments due If notified by the Tax Authorities and no VAT payment due- EUR 200 If voluntary disclosure and no VAT payment due- EUR 100 EUR 200 If voluntary disclosure and tax payment due- 5-25% of the VAT payments due (25% reduction if paid within deadlines
	Incomplete returns	EUR 300 - EUR 20000; Calculated with EUR 20 per incomplete information
	Late VAT payment	0-3 months - 5% of VAT payment due; 3-6 months - 10% of VAT payment due 6-12months - 15% of VAT payment due After 12 months - 20%	After one year - 3.75% per annum
	Unpaid VAT discovered in Audit	50-150% of the VAT payment due
Poland	Late VAT registration	PLN 93,60 to PLN 18,720
	Late VAT filing	PLN 93,60 to PLN 18,720
	Late VAT payment	Interest on payment due	8% per annum
	Unpaid VAT discovered in Audit	Decided on case by case basis	8% per annum
Czech Republic	Late VAT filing	For each day of delay- 5% of VAT payment due
	Late VAT payment	Interest on payment due	15% + <Repo rate in the country applicable for every calendar half year>
	Unpaid VAT discovered in Audit	20% of the VAT payment due

For Italy		Reduced penalties (applied to base penalty)	Timeframe
Reason	Penalties	Reduced penalties (applied to base penalty)	Timeframe
Late payments	30%	1/10 + (1/15 for each day of delay)	Within 14 days from the violation
		1/10	Between 15 and 30 days from the violation
		1/9	Between 31 and 90 days from the violation or from the deadline of Annual Return
		1/8	Within 1 year from the violation or within the deadline of Annual Return relating to FY in which the violation occurred
		1/7	Within 2 years from the violation or within the deadline of Annual Return relating to FY following the year in which the violation occurred
		1/6	After 2 years from the violation or after the deadline of Annual Return relating to FY following the year in which the violation occurred
		1/5	After having received the "verbale di constatazione - PVC" (official notice)
Incorrect Annual Returns	90% to 180% of VAT payment due	1/9	Within 90 days from the violation or from the deadline of Annual Return
Incorrect Annual Returns	90% to 180% of VAT payment due	1/8	Within 1 year from the violation or within the deadline of Annual Return relating to FY in which the violation occurred
Communications not filed(Annual Communication or ANR or black list)	€ 516 to € 2,065	1/7	Within 2 years from the violation or within the deadline of Annual Return relating to FY following the year in which the violation occurred
	€ 516 to € 2,065	1/6	After 2 years from the violation or after the deadline of Annual Return relating to FY following the year in which the violation occurred
Annual Returns not filed	120% to 240% of the VAT payment due; minimum € 258	50% ; minimum € 200	Within 1 year from the deadline of Annual Return
Accounting violations	90% to 180% of the VAT payment due; minimum € 500 € 258 to € 2,000 if the VAT payment done 5% to 10% of the VAT payment due if the transactions are not subject to VAT	1/9	Within 90 days from the violation
Not issuing invoices or receipts	150% of the VAT payment due; minimum of € 500	1/9	Within 90 days from the violation

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