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Italy Tax Agency Clarifies VAT Variation Note and Deduction Rules for Negative Invoices

  • The Italian Revenue Agency has issued a clarification on VAT variation notes and input deduction rules for negative invoices.
  • The clarification was in response to a taxpayer who operated as a seller of gas and electricity and had purchased gas from a distributor.
  • The distributor was unable to pay the taxpayer amounts related to a bonus due to bankruptcy.
  • The taxpayer asked if a “negative” variation note should be issued to reverse the “negative” invoices received by purchasers.
  • The Tax Agency clarified that the transferor of goods or provider of services is entitled to an input VAT deduction when the transferee or purchaser fails to pay due to insolvency proceedings or a debt restructuring agreement.
  • An application for reimbursement of tax paid can be filed within two years of payment after the closing of bankruptcy proceedings.


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.


VAT news
VAT news