- A company that participates in the group VAT liquidation as a subsidiary and incorporates external companies into the group for which the control requirement does not exist from the previous year’s July 1st can continue to participate in the procedure without interruption.
- This clarification was provided by the Italian Revenue Agency in response to an inquiry.
- The case examined involved Delta, which participates in the group VAT liquidation under Alfa (the controlling company).
- In 2022, Alfa acquired control of Beta and Gamma, and in 2023, Delta incorporated Beta and Gamma.
- The question was whether Delta could continue to participate in the group procedure without interruption despite incorporating external companies that Alfa has controlled directly and indirectly for less than a year.
- The Revenue Agency confirmed that Delta can continue to participate in the group liquidation without interruption, but the VAT credit accrued by the incorporated companies until the month or quarter before the merger cannot be included in the procedure.
- However, the VAT debt or credit resulting from operations carried out by the incorporated companies in the current month or quarter can be transferred to the incorporating company.
Source: eutekne.info
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
