- UK and Italy have reached a reciprocity agreement for VAT refunds via the 13th Directive
- Effective from February 7, 2024, with retroactive application from January 1, 2021
- The agreement aims to streamline cross-border transactions and reduce administrative burdens for businesses in both countries
- UK businesses can now claim VAT incurred in Italy even if not VAT-registered
- Prior to the agreement, UK businesses faced complex procedures to claim VAT refunds in Italy
- The agreement allows for a foreseen procedure for submitting VAT refund claims
- The retroactive application of the agreement extends benefits to claims dating back to the beginning of 2021
- The practical implementation of the retroactive aspect is pending further clarification from Italian tax offices.
Source: marosavat.com
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.
