VAT Credit Carryforward for Travel Agencies Joining VAT Groups in Italy

• Italian Revenue Agency issued Answer No. 24 2025 on February 11, 2025
• Answer clarifies carryforward of VAT credits for a company joining a VAT group
• Taxpayer acquired 75 percent stake in a company in the flexible benefits market
• Acquired company operated under a special VAT regime for travel agencies
• Acquired company accumulated VAT credits before joining the group
• Taxpayer sought clarification on whether VAT cost credits could be carried forward
• Tax Agency clarified that costs incurred before joining the VAT group are part of the taxable base under the special VAT regime for travel agencies
• Tax Agency clarified that specified provisions of the regime allowed VAT credits to be transferred to the VAT group, which is necessary to determine the taxable base

Source: news.bloombergtax.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.

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