Italy has introduced an AI-powered chatbot that works alongside the VeRa system to detect VAT fraud in real time by scanning transactions and flagging irregularities for tax authorities. This forms part of Italy's broader digital tax enforcement strategy, with a focus on data accuracy and real-time compliance.
Italy uses AI-Powered chatbot to detect VAT Fraud in real time.
Public
Italy
Author: Nikolina Basić
Category:
Fiscal subject related
General information
Views:
306
Content accuracy validation date:
08.07.2025
Content accuracy validation time:
09:45h
Italy is taking a bold step in tax enforcement with the introduction of AI-driven tools designed to detect VAT fraud instantly. The country’s tax agency, Agenzia delle Entrate, in collaboration with Sogei and the Ministry of Economy and Finance, has rolled out a new AI chatbot that works alongside the existing VeRa fraud detection system.
The chatbot actively scans VAT returns and transactions, flagging irregularities like
· Mismatched invoices
· Undeclared income
· Inconsistent financial activity
· Suspicious findings are sent directly to tax officers, helping them focus on high-risk cases faster.
This is part of Italy’s larger push to digitally transform tax compliance. The VeRa algorithm already cross-checks data from e-invoicing, bank transactions, customs, and property databases. In 2022 alone, it helped identify over one million suspect filings.
As these systems grow smarter, they also rely heavily on clean, accurate data. Businesses must ensure:
· Correct VAT numbers, addresses, and legal identifiers
· Proper classification of goods and services
· Alignment across supplier records and tax categories
Poor data can trigger false flags or unnecessary audits. Authorities are clear: compliance starts at data entry, not during the filing stage.
Staying compliant now means embracing
· Centralized master data
· Real-time validation tools
· Clear ownership of tax-related records
Other news from Italy
New document was uploaded: S4F backoffice patch
Author: Dejan Šijačić
S4F backoffice patch is intended for users who have already installed S4F backoffice and are intended to update existing installations to latest version. To do so apply only patches that are marked with version number that is newer than your currently installed instance of backoffice. Please make sure to install all available patches sequentially (without skipping). This package contains instruction, release notes, changelog and software packages required for deployment of this software component. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New regulation requires justification for Tax Inspections in Italy
Public
Italy
Author: Nikolina Basić
Italy
Author: Nikolina Basić
Italy is set to require written justification for tax inspections, following a proposed amendment responding to an ECHR ruling that criticized past practices for lacking privacy safeguards. The Italian Revenue Agency and the Guardia di Finanza will no longer be allowed to inspect businesses or professional offices without a clear written justification. This major change comes from a propos... Read more
New document was uploaded: S4F backoffice patch
Author: Dejan Šijačić
S4F backoffice patch is intended for users who have already installed S4F backoffice and are intended to update existing installations to latest version. To do so apply only patches that are marked with version number that is newer than your currently installed instance of backoffice. Please make sure to install all available patches sequentially (without skipping). This package contains instruction, release notes, changelog and software packages required for deployment of this software component. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Software Fiscalization in Italy: Revenue Agency Extends Technical Specifications
Italy
Author: Maiia Radchenko
Italy is advancing its Software Solution Fiscalization under Article 24 of Legislative Decree No. 1/2024, with the Revenue Agency publishing extended technical specifications on June 17, 2025. The updated pack includes detailed API specifications for transaction transmission, PEM management, and data retrieval. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Data transmission with software solutions for fiscalization in Italy and POS requirements
Italy
Author: Nikolina Basić
Italy’s fiscalisation system requires businesses to use certified POS software that records each sale and transmits transaction data in real time to the Revenue Agency. Sales are processed through a Point of Issuance (PEM), verified by a Processing Point (PEL), and then securely sent to the tax authorities for audit and compliance purposes. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New document was uploaded: Layouts of the commercial documents and examples
Italy
Author: ----
The document provides standard and compact layouts for commercial documents such as receipts, returns, and cancellations, in compliance with Italian fiscal requirements. It illustrates the structure of sales or service documents, including mandatory fields like VAT rates, totals, lottery codes, document hashes, and two-dimensional codes for traceability. Specific rules apply for payments entirely in cash, including mandatory rounding adjustments displayed as “Discount to pay” or “Arro. DL N.50/2017.” Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login