Non-Resident Subject’s Fixed Establishment: VAT Refund Rules

• The Court of Cassation ruled that a non-resident subject with a fixed establishment in Italy cannot access the facilitated VAT refund
• The position of the non-resident subject for VAT purposes merges entirely with that of the fixed establishment
• The Agency of Revenue clarified this in response to inquiry no. 87 of 2024
• Article 38-ter of the “VAT decree” allows for VAT refund for purchases and imports directly related to the subject’s activity
• The subject must apply for a refund of excess VAT using the ordinary provisions of article 38-bis if the passive operations are directly attributable to the fixed establishment
• The Court of Cassation’s ruling was based on the fact that the non-resident subject’s position for VAT purposes merges entirely with that of the fixed establishment

Source: ipsoa.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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