Italian Revenue Agency Clarifies VAT Adjustment Exclusion for Pre-2015 Electricity Sales

• The Italian Revenue Agency clarified that the reverse charge mechanism does not apply to VAT adjustments for electricity sales made before 2015
• The reverse charge mechanism was introduced in Italy in 2015 through Law 190/2014 to prevent tax fraud
• Adjustments to VAT for electricity sales prior to 2015 cannot use the reverse charge mechanism
• Any additional charges due to price updates must be invoiced with standard VAT, not reverse charge
• The clarification was issued by the Italian Revenue Agency on August 12, 2024, based on Article 17 of DPR 633/72
• Businesses need to adjust their invoicing practices for pre-2015 sales as per the clarification

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.

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