Exciting news for UK businesses!
Buona notizia! In May 2024, the Italian Revenue Agency (Agenzia delle Entrate) confirmed the details of a reciprocal agreement, signed earlier this year between the UK and Italy, enabling British businesses to claim back their Italian VAT.
Under this agreement, UK companies that are not established in Italy can request refunds for Italian VAT paid via the "13th Directive" refund procedure (Directive 560/1986).
The agreement is retroactive to January 1, 2021, meaning refund claims can be backdated to this date.
Key Points of the Agreement:
Retroactive application: Refund claims can be backdated to January 1, 2021, providing a substantial opportunity for businesses to recover previously unrecoverable VAT.
Reciprocal agreement: This agreement simplifies the refund process under the "13th Directive" refund procedure (Directive 560/1986). This procedure allows non-EU businesses to claim VAT refunds from EU countries.
Eligibility criteria: To qualify, claims must meet the conditions set out in Article 38-ter of the Italian VAT law. These include:
The claimant must not have a fixed establishment in Italy during the period in question.
The claimant must not have conducted taxable transactions in Italy, except for certain transport services, reverse charge operations, and services listed under Article 74-septies of the Italian VAT law.
The purchases for which a refund is claimed must confer the right to VAT deduction in Italy, relating directly to the business activities of the non-EU entity.
Important Deadlines
Refund claims for VAT paid in 2021 and 2022 are typically due by 30 September of the following year. However, the retroactive effect of this agreement extends the possibility of reclaiming VAT paid during these years, opening a new window for businesses to recover these funds.
How RM Boulanger Can Help
At RM Boulanger, we understand the complexities of international VAT refunds. With our 40+ years of expertise in taxation, we assist businesses throughout the entire process of recovering Italian VAT, from evaluating your eligibility to submitting your refund claim.
Our services include:
Eligibility analysis: Verifying that your business transactions meet the necessary criteria for the refund.
Document preparation: Assisting in the collection and preparation of all required documents.
Claim submission: Managing the complete submission of your claim to the Italian tax authorities.
Follow-up and support: Monitoring the status of your claim and resolving any issues that may arise.
Our goal is to simplify the process and maximise your chances of recovering the VAT amounts owed to your company.
For any assistance or questions regarding the VAT refund process, please do not hesitate to contact us.
Our team of experts is ready to help you every step of the way.
