Erroneous application of reverse charge – recovery of VAT paid as a refund

• The taxpayer is seeking clarification on the recovery of incorrectly paid VAT under the reverse charge mechanism.
• The taxpayer had contracted a company for renovation and expansion works in their buildings.
• Tax authorities found that several services were incorrectly invoiced under the reverse charge mechanism.
• The taxpayer received assessment notices for each year, with penalties imposed for some services but not for others.
• The contractor has already paid the assessed VAT.
• The taxpayer recorded the invoices in their purchase and sales registers.
• The taxpayer is subject to the prorated VAT mechanism.
• The taxpayer wants to know how to recover the VAT charged by the contractor, which has already been paid to the tax authorities.

Source: agenziaentrate.gov.it

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.

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