Closure of VAT numbers for inactive companies: when does it happen?

When are Inactive VAT numbers closed down by default?

Opening a VAT number has become so quick and easy that sometimes the decision to start an activity is taken without much consideration.
Even though it is a fairly immediate operation that can be requested independently and online without the need for an accountant, it still involves tax obligations.
Therefore, before deciding to open one, it is essential to understand how a VAT number works to prevent it from being closed down by default, with all the consequences that this entails.

Procedure and Timing for Default Closure

After three years of inactivity, unused VAT numbers are automatically closed down by the Revenue Agency.
This process does not happen without notifying the owner of the VAT number.
Let’s see when this occurs and the different steps to follow to correctly close down a VAT number or prevent its default cessation.

Cessation of Activity: Individuals or professionals who, after opening a VAT number, decide to cease their business activity must communicate this choice to the Revenue Agency and proceed with closing the VAT number.

For sole proprietorships, agents, and brokers, a separate communication is required, while freelancers only need to contact the National Social Security Institute (INPS) and the Revenue Agency.
Although the process can theoretically be carried out independently, it is advisable to seek a specialist’s help to ensure everything is done correctly.

The communication to the Revenue Agency must be made using form AA9/12, the same form used for opening and making changes to the VAT number, within a maximum of thirty days from the cessation of activity.
If this deadline is not met, the Revenue Agency will proceed with the default closure of the VAT number.

Default Closure Process and Checks for Inactive VAT Numbers

A VAT number that has not been used for any business, artistic, or professional activity for three years is automatically closed by the Revenue Agency.
The agency identifies inactive VAT numbers automatically using data available in the Tax Registry.

The Revenue Agency focuses on VAT numbers that have not submitted income tax returns or VAT declarations in the previous three years.
Those VAT numbers that have not conducted any activities for the three previous years are identified for closure.

The agency sends a prior notification of default closure of the VAT number to the potentially inactive parties.
Recipients have 60 days to provide clarifications on their tax situation.

Checking and Closure Procedures

Holders of VAT numbers who receive a prior notification of default closure have 60 days from receipt to clarify their tax situation.
They can highlight any errors or omitted details during this period.

Based on the documentation provided by the taxpayer, the Revenue Agency will decide whether to proceed with closing the VAT number or accept the taxpayer’s request.
For entities other than individuals, the tax authorities will also cancel the taxpayer’s tax code.

If the closure of the VAT number is deemed incorrect by the taxpayer, they have 60 days from receiving the notification to justify their case to the Revenue Agency.
Even if their justifications are rejected and the VAT number is closed by default, they are free to open a new one to continue their professional activities.