Automatic Penalties from AADE Begin in the Coming Weeks: What Changes for Taxpayers and Businesses

The new digital system of AADE is being fully implemented gradually, bringing radical changes to how taxes are enforced. By the end of June at the latest, AADE is expected to activate the automated process for confirming penalties for late submissions without any intervention from tax offices. This change is part of AADE’s broader plan for the digital transformation of tax administration, aiming to simplify procedures, reduce bureaucracy, and enhance tax compliance. Under the new regime, when a taxpayer or business submits a late tax return—whether for VAT, income, withheld taxes, or receipts confirmations—the system will automatically detect the delay and issue the applicable penalty. The related notification will immediately appear in the taxpayer’s personalized information via the myAADE app without requiring any human intervention. The amounts of the penalties remain the same as before; however, the speed of confirmation changes significantly. For individuals who are not professionals, the penalty is €100. For businesses with single-entry books, it is €250, and for those with double-entry books, the penalty reaches €500. Additionally, if the payment deadline has also passed, a monthly interest of 0.73% on the debt is added. Exceptions include cases where modified returns are submitted for already timely filed declarations or when the total tax amount resulting from the late declaration does not exceed €100. According to AADE officials, the aim of the new automated process is not to punish citizens but to reinforce consistency and transparency in the tax system. With this new functionality, the lengthy delays in imposing penalties are avoided, as is the need for physical presence or visits to tax offices. This measure is part of a wider framework of reforms driven by AADE towards the full digitization of its services. Specifically, in the VAT sector, the digital monitoring and refund of taxes with ‘one click’—as is already piloted—and the swift imposition of penalties shape a more predictable and automated tax environment. The new system is expected to be fully operational by the end of June.