Hello all, I run a UK based e-commerce business that sells worldwide. I've recently discovered that we passed the €35k distance selling threshold in our last financial year (May 1st 2017 - April 30th 2018) and now need to work out how to register for VAT in Italy and back pay the VAT for over £100k worth of sales to the Italian government. Some notes: • We passed the €35,000 Italian VAT threshold in July 2017 • Our financial year runs May 1st - Apr 30th, so our last financial year (FY17-18) is the only one in which we have breached the threshold • Our sales in FY17-18 in Italy have been approx £100k inclusive of VAT (this is also inclusive of shipping costs, I don't know if VAT applies to shipping) I reached out to some Europe VAT advisors but their responses are going completely over my head. One responded with a list of potential fines we may face: Having in mind that your company has not reported the activity to the Italian tax authorities since approximately over a year ago, we could regularize the violation corresponding to the omitted VAT payments. It is no more possible to regularize some other violations of the VAT law like: -Omitted submission of the Annual VAT return (fine from 120% to 240% of the VAT resulting from the return) -Late registration on the VAT books of the annual sales (fine from 90 to 180% of the VAT amount related to the sales not registered on time) -Unregular preparation of the VAT books (fine form Euro 1.000 to Euro 8.000) -Late VAT registration (fine form Euro 500 to Euro 2.000). Are these charges realistic, and likely? If so, they seem wildly high – and would likely put us out of business. I've had 2 calls and a very long email thread with an Italian VAT advisor and I'm still nowhere closer to understanding the fines we will face, they're throwing all sorts of daunting numbers around. Further down the email, they also mentioned more possible charges: The risk of the company is that they will be required to pay a penalty which may be as high as 60% or 70% of the reported VAT. In case of lack of voluntary regularization or lack of cooperation these rates can be duplicated. We could try to work with our local partner and intent to reduce the rate of penalties to 6-10%, we cannot guarantee the success of that approach though as this depends from the decision of the tax authorities. Does anyone have experience in this process? I'd really like to get my head around what fines we are actually going to face when we approach the Italian government to try and pay taxes to them. Much appreciated!